ALBUQUERQUE, N.M. — One of America’s best-known retailers is cutting its New Mexico presence in half.
Macy’s on Wednesday announced plans to close its Cottonwood Mall store – one of just two locations it operates statewide – as part of sweeping cost-saving measures.
The large department store – which sells everything from clothes to kitchen appliances – will close in early spring, a company spokeswoman said.
Macy’s is among Cottonwood Mall’s anchor tenants, with a store measuring 173,000 square feet. The closure means eliminating 56 jobs, according to the retailer’s announcement. The company said employees whose positions are cut might be offered positions in nearby stores.
But Macy’s – which currently boasts 730 stores – will have just one remaining location in New Mexico, at Albuquerque’s Coronado Center.
The Cottonwood news comes as part of a larger announcement that Macy’s will eliminate more than 10,000 jobs and move forward with 68 store closures after a disappointing holiday shopping season.
The retailer said Wednesday that sales at its established stores fell 2.1 percent in November and December compared to the same period last year. Macy’s Inc. pointed to changing consumer behavior and said its performance reflects the challenges that are facing much of the retail industry.
The loss of Macy’s will leave another big hole at Cottonwood, which also lost anchor Sports Authority last year. The two stores add up to 214,300 square feet.
Cottonwood representatives did not answer specific questions about the impact of the Macy’s closure, instead providing an emailed statement from general manager B Janecka.
“Cottonwood Mall continues to evolve by providing shoppers with the brands they seek,” Janecka said. “We look forward to continuing to expand our retail mix with exciting new additions in the future.”
Macy’s said the 68 store closures, which span the nation, are part of the 100 closings it announced in August.
Macy’s is selling or has sold three other locations but is leasing the properties back and will keep operating those stores.
Some employees may be offered positions at nearby stores, but Macy’s estimates that 3,900 employees will be affected by the closures.
Macy’s also said it plans to restructure parts of its business and sell some properties. This will lead to the reduction of another 6,200 jobs.
The moves are estimated to save $550 million annually.
Overall, Macy’s said, the job reductions represent about 7 percent of its workforce.
Jim Dountas and Lia Armstrong of the commercial real estate firm CBRE will be working to help Macy’s, which owns its Cottonwood Mall space, lease or sell it.
The Associated Press contributed to this report.