A national retailer is shuttering stores at two Richmond area malls in moves that will open up more than 300,000 square feet of space.
Macy’s announced Wednesday that it will be closing 40 stores nationwide, including its locations in Regency Square at 1406 N. Parham Road and Virginia Center Commons at 10101 Brook Road.
Clearance sales are slated to start at the locations Jan. 11 and continue for the next eight to 12 weeks, according to a news release. An exact closing date was not stated.
“In light of our disappointing 2015 sales and earnings performance, we are making adjustments to become more efficient and productive in our operations,” Macy’s CEO Terry Lundgren said in the release.
The region’s three other Macy’s locations at Chesterfield Towne Center, Short Pump Town Center and South Park Mall were not included in the list of stores to be closed.
Regency Square supports two Macy’s stores, a 100,000-square-foot main store and a 124,000-square-foot furniture and home store. The locations take up two sides of the 820,000-square-foot mall, which was purchased last year by Thalhimer Realty Partners and the Rebkee Co.
The 110,000-square-foot location in Virginia Center Commons opened in 1993. The 785,000-square-foot mall was purchased by Ohio-based REIT WP Glimcher in May of 2014.
Both malls are eyeing major renovations and each still has JCPenney and Sears as remaining anchor tenants.
Representatives with Thalhimer, Rebkee and Glimcher did not return requests for comment by press time. Reached by phone Wednesday, Thalhimer Vice President Mark Slusher said the company had prepared a news release in response to the closures but declined to share the information with BizSense by press time.
The local closures will impact 216 employees, 81 at Virginia Center Commons and 135 at Regency Square. According to the release, employees may be offered positions at nearby stores, and eligible employees will be offered severance packages.
Three other Virginia stores in Chesapeake, Hampton and Norfolk will also be closed.
According to the news release, Macy’s also has plans to adjust staffing levels at its remaining stores, affecting an average of three or four positions in each location for a total of 3,000 jobs across the country. About 50 percent of those employees are likely to be placed in other positions.
Macy’s will be left with 770 stores moving forward. In April of 2015 it had 900 stores. The changes are expected to save the company $400 million annually. The company, which also operates Bloomingdale’s retail stores, opened its first location in New York City in 1858 as R.H. Macy & Co.
It’s too bad to hear this news, but maybe a consolidation will be on the horizon. Hopefully a pent up demand downtown can lure the franchise to open there.
Remember 6th Street Market Place.
The climate of downtown while it has changed, can’t even revamp a broken ball park, so I seriously doubt commerce of a “mall type” will never come to fruition. Besides, if they did make a new mall, where would all the craft beer stores go?
Saw the headline, easy guess of the two locations before the article appeared within my browser. Unsurprising development, but certainly one of considerable pain for the 200+ area employees and for the recent acquirers of two area malls. Nearly a year ago, I published a succinct list of renovations that should be made at Regency to breathe new life into, what I consider, to still be a vital retail centerpiece within western Henrico County. https://www.linkedin.com/pulse/10tweaks-regency-square-mall-jim-washok Regency houses stores that are not going to be available at the Short Pump and Stoney Point malls. We need Regency, more than we might… Read more »
I’ve always found the selection to be better at the Regency store versus Short Pump, so I am disappointed by the Regency closure.
A downtown store will never happen unless 50,000 people live in core downtown RVA. As for Regency in its current form it is dead. This is Cloverleaf all over again. The site can be redeveloped for sure but the current structures needs to go. The Macy stores represent over 25% of the retail space and the mall is about 30% vacant now that the holiday stores are gone. Very very few national retailers, despite the new owner talk of “talk”, are going to open in a 40 year old mall that come March will have an over 50% vacancy rate.… Read more »