February 2, 2009

Macy's and Home Depot, flagships of Lakewood Mall, cut further

Its no secret that retail sales are cratering and that the two lead tenants in the Lakewood Center Mall are not doing well.

Macy's Inc. said this week that it's cutting 7,000 jobs - including 5,100 in its stores - and centralizing some of its corporate operations in an effort to reduce costs amid an increasingly difficult retail environment. The company also projected earnings for the fiscal year just beginning that are well below analysts' estimates. The company does not plan to close any additional Macy's or Bloomingdale's locations other than 11 Macy's stores whose shutdown was previously announced. Looking at the rest of the year, the department store operator expects to see "a very challenging environment" through 2009. As such, the retailer forecast same-store sales, or sales at its stores open at least a year, to fall between 6% to 8% for the year.

Home Depot, the No. 1 home improvement retailer, announced Monday that it is shutting down its high-end decor EXPO business and shrinking its support staff, with both moves resulting in a reduction of 7,000 jobs. Additionally, the retailer said it will reduce support staff, impacting about 2,000 employees and resulting in a 10% reduction in the company's officer ranks. Home Depot currently operates 2,274 stores. Home Depot expects sales for the year ending this month to drop by 8% and earnings per share from continuing operations to decline by 24%, excluding charges associated with the latest job cuts and store closings

Lakewood Accountability Action Group™ LAAG | www.LAAG.us | Lakewood, CA
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