The department store chain announced today that it has sold five of its stores to real estate investment trust General Growth Properties as part of a plan, announced it August, to reallocate investments to the firm’s top performing stores, rethink its real estate investments and double down on its digital strategy.
The Macy’s store at Greenwood Mall in Bowling Green, Ky., was sold earlier in the year. Four other Macy’s stores were sold in the third quarter: Carolina Place in Pineville, N.C.; Oakwood Mall in Eau Claire, Wis.; Quail Springs Mall in Oklahoma City; and Tysons Galleria in McLean, Va.
The company said it would continue to operate the Tysons Galleria store on a lease from General Growth Properties. The Quail Springs Mall store closed this past spring. Carolina Place, Greenwood Mall and Oakwood Mall will continue operations through the holiday season and will be closed in spring 2017. Macy’s said it would aim to transfer associates to other stores, and offer severance packages to eligible associates.
The company said it the purchase price of the four stores was $46 million, and that it expects to realize a gain of $32 million from the sales in the third quarter of fiscal year 2016.
In August, Macy’s said that it planned to close 100 stores across the U.S. because they had either been unprofitable for some time or the real estate value was more than that of the store.
The announcement followed similar news from the department store in late 2015, when it said that it would close about 40 stores.
The company’s store count currently sits at about 880 stores in 45 states, the District of Columbia, Guam and Puerto Rico.