Macy’s Closing Six Stores This Spring
Macy’s Inc. said Thursday it will close six stores in the spring, which will change the affected downtown shopping districts, though not necessarily for the worse. The three largest Macy’s stores to be shuttered are a 158,000-square-foot Paseo Colorado in Pasadena, Calif., a 362,000-square-foot unit in downtown St. Paul, and a 791,000-square-foot store in downtown Houston. Macy’s is also closing a 99,000-square-foot Bloomingdale’s home store at the Fashion Show Mall in Las Vegas, and two more Macy’s units: a 75,000-square-foot one in Belmont, Mass., and an 80,000-square-foot store in downtown Honolulu. Macy’s in 2013 and 2014 will open stores ranging in size from 105,000 square feet to 180,000 square feet at the Mall of Victor Valley in Victorville, Calif.; Gurnee Mills in Gurnee, Ill.; the Mall at Bay Plaza in the Bronx; University Town Center in Sarasota, Fla., and in Las Vegas, at the Shops at Summerlin and the addition of a men’s store at the Fashion Show Mall. A 200,000-square-foot Macy’s unit is being built at Westfield South Shore in Bay Shore, N.Y., to replace an older store in the same center. Meanwhile, Bloomingdale’s stores will be built at Glendale Galleria in Glendale, Calif., Stanford Shopping Center in Palo Alto, Calif., and a Bloomingdale’s Outlet unit at Fashion Outlets Chicago in Rosemont, Ill. Macy’s also revealed the consolidation of two stores at Ridgedale Center in Minnetonka, Minn., into an expanded store with 286,000 square feet in 2014.
Update: Gap Inc. Acquires Intermix
The transaction closed Dec. 31. The deal expands Gap’s presence in the growing global luxury retail market and comes at a time when the $15 billion San Francisco-based retailer, which has been in turnaround mode for more than a decade, seems to have found its groove again. It posted third-quarter earnings in November in which net income jumped 60 percent from last year. Intermix’s senior team of Khajak Keledjian, cofounder and chief executive officer, and Adrienne Lazarus, president, will continue to operate the business from New York. Keledjian moves over to the role of chief creative officer. Both report to Art Peck, president of Gap’s Growth, Innovation & Digital division. Peck spearheaded the acquisition, working with Glenn Murphy, chairman and ceo of Gap Inc. The specialty chain’s seventh New York store, located on the Bowery, is slated to open this spring. Other locations slated for openings this year are Brooklyn, N.Y., and in San Francisco and Montecito, California.
The Intermix deal is a rare acquisition by Gap Inc., which generally has grown brands in-house. The last purchase the retailer made was Athleta in 2008, and prior to that it had not bought any companies, instead developing such formats as Banana Republic and Old Navy. That doesn’t mean it isn’t always on the lookout — and it has plenty of financial flexibility to do deals. For the third quarter ended Oct. 27, the company said it had $1.8 billion in cash, cash equivalents and short-term investments.
Target and Neiman Marcus Collaboration Fail
The Target and Neiman Marcus partnership with the CFDA and its most famous members featured a collection that was sold at Neiman Marcus and Target. It launched following not only tons of media buzz, but also TV commercials and unfortunately, still failed. In the past, Target designer collaborations have sold out in minutes, this one still has a surplus of inventory after the biggest shopping month of the year on shelves. Currently, items are on clearance for up to 70% off! Among the reasons TIME magazine says it tanked was the improper representation in Target stores, the high price point for the Target consumer, and the obscure item choices (e.g. the Oscar de la Rental dog food bowl). With so many parties involved, it was difficult to figure out what exactly it was. Was it a collaboration? Who was it a collaboration between? How many people were involved? Is the quality more in line with Target or Neiman Marcus or the participating designers themselves? Even the advertising was purposely vague.
–Selicia A. Walker
Sources: WWD, Fashionista, TIME