General Growth Properties buys five department stores from Macy’s
Macy’s has announced that it is has sold five of its stores to General Growth Properties in a $46m deal. The move is part of wider plan to drive profits at the retailer by diverting investment.
Macy’s previously announced that it would be reallocating investments to its highest growth-potential stores and investing further in its e-commerce site.
Four of the stores were sold in the third quarter – Carolina Place in Pineville, North Carolina; Oakwood Mall in Eau Claire, Wisconsin; Quail Springs Mall in Oklahoma and Tysons Galleria in McLean, Virginia.
An additional store was sold in the fourth quarter – Greenwood Mall in Bowling Green, Kentucky.
Three of the stores will close in spring 2017 after the Christmas shopping period, while the Tysons Galleria store will still be operated by Macy’s on a lease from General Growth Properties. The store in Quail Springs already closed earlier in 2016.
Each of the stores employed from 60 up to 120 members of staff.
Macy’s says that associates impacted by the closures may be offered employment at nearby stores where possible. Those who are not able to be transferred will be offered severance benefits if they are eligible.
Macy’s expects to gain $32m from the sale in its third quarter.
General Growth Properties is a real estate investment company that owns and manages shopping malls in the US.