Brookdale Macy's to close

The store is one of 11 underperforming outlets the retailer will close. The closings are needed "to maintain a healthy portfolio of stores," a company official said.

By PAUL WALSH, Star Tribune

Last update: January 9, 2009 - 10:17 AM

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An already struggling Brookdale shopping center suffered yet another blow Thursday morning as Macy's announced that it is closing its Brooklyn Center outlet along with 10 others around the country. The move comes as Macy's reported dismal sales figures for the previous five weeks.

Macy's other stores in the Twin Cities area are in Minneapolis, St. Paul, Bloomington, Burnsville, Edina, Maplewood, Minnetonka and Roseville.

"These closings are part of our normal-course process to prune underperforming locations each year in order to maintain a healthy portfolio of stores," Terry J. Lundgren, chairman, president and chief executive officer of Macy's Inc., said in a news release. "While new store growth has slowed in the current economy, our long-term strategy is to continue to selectively add new stores while closing those that are underperforming."

The Brookdale Macy's, covering 195,000 square feet and with 72 employees, opened in 1966 as Dayton's.

The others Macy's closing are in: Los Angeles; Colorado Springs; Westminster, Colo.; West Palm Beach, Fla., Island of Hawaii; Indianapolis; St. Louis; Natrona Heights, Pa.; West Mifflin, Pa.; and Nashville.

Final clearance sales at these stores, except the one in Hawaii, will begin within the next week.

"The decision to close stores is difficult, and often occurs when the market changes, new competing shopping centers are opened nearby to existing older ones, or when customers change shopping habits. In the store closing process, we are committed to treating affected associates with respect and openness," Lundgren said.

Employees at the doomed stores "may be considered for open positions at other Macy's locations," the news release said. Severance benefits and outplacement assistance also will be offered.

Eleven months ago, Macy's announced that it was closing its Minneapolis division headquarters, laying off 950 employees. The move was part of a $150 million nationwide consolidation that including folding the Minneapolis-based Macy's North headquarters on Nicollet Mall into New York-based Macy's East.

In 2009, Macy's Inc. expects to open three new Macy's stores and one replacement store. Following the store closings announced today, Macy's Inc. will operate 848 stores -- 808 Macy's and 40 Bloomingdale's.

Built in the 1960s as one of the Twin Cities' four "Dales" -- Brookdale, Ridgedale, Rosedale and Southdale -- Brookdale has had a host of problems in the past several years, including the loss of other major tenants and owners who fell behind on property taxes.

Brookdale also has faced increased competition from a boom in retail development in nearby Maple Grove. Demographic changes have led to a decline in per

capita income in its trade area.

Brookdale also has suffered because of a reputation it has gotten over the years as unsafe. Brooklyn Center police statistics for 2008 through Dec. 8 show an increase in robberies but declines in auto theft, assaults and overall crime at the mall compared with the same periods in 2007 and 2006.

Also today, Macy's said that its December sales at stores open at least a year, or same-store sales, fell 4 percent. Total sales for the five-week period ended Jan. 3 fell 5 percent to $4.4 billion from $4.61 billion last year. Macy's now expects earnings of 90 cents to $1 per share in the fourth quarter, down from its previous forecast of $1.10 to $1.30 per share. Analysts expect earnings of $1.11 per share.

For the full year, the company now expects to earn $1.10 to $1.20 per share, down from its previous forecast of $1.30 to $1.50 per share. Analysts expect a profit of $1.35 per share.

Paul Walsh • 612-673-4482

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