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90 ROCHELLE R. BRUNSON AND MARLENE M. REED

EXHIBIT 7 Macy’s, Inc., Store Closings, 2008–2009
Facility Location City Square Footage No. of Employees
Ernst & Young Plaza Los Angeles, CA 135,000 136
The Citadel Colorado Springs, CO 195,000 105
Westminster Mall Westminster, CO 190,000 71
Mauna Lani Bay Hotel Island of Hawaii, HI 3,000 3
Lafayette Square Indianapolis, IN 160,000 84
Brookdale Center Brooklyn Center, MN 195,000 72
Crestwood Mall St. Louis, MO 166,000 76
Natrona Heights Plaza Natrona Heights, PA 73,000 124
Century III Furniture & Clearance West Miffin, PA 83,000 3
Bellevue Center Nashville, TN 211,000 76

stores. 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.”
A month later, a Wall Street Journal article on dated February 3, 2009, stated that
Macy’s intends to shed 7,000 jobs or 4 percent of its workforce. Macy’s also is cutting its
dividends by 62 percent, ending merit pay increases for executives, and slashing its 2009
capital-spending budget by another $100 million to $150 million. The original budget was
$1 billion (Dodes, 2009).
Retail consultant Howard Davidowitz suggests that “Chief executives of retailers
with high debt levels are especially vulnerable.” He pointed to Terry J. Lundren of Macy’s
as “someone who needs to make significant progress after poor 2008 results and the ill-
timed acquisition of May Company” (Bymes and McConnon, 2009).
On a more positive level, Macy’s corporate vision contains the following statements:

“A belief in the promise of the future with the energy and determination to get us there;
A belief that our heritage mirrors the optimism, inclusion and integrity that provide for
both stability and growth; and
A belief that taking advantage of the right opportunities will continue to lead us to suc-
cess in all that we do.”

In lieu of the company’s optimistic vision statement and the serious economic down-
turn in the economy of the United States, which resulted in the closing of 11 Macy’s stores,
Lundgren and the rest of the company leadership were faced with determining an appropri-
ate strategy to avoid more layoffs and store closings.

References Cited
Bymes, Nanette, and Aili McConnon. “Executives on a Tightrope.” BusinessWeek
(January 19, 2009): 43.
Dodes, Rachel. “Macy’s to Shed 7,000 jobs, Cut Payout by 62%.” Wall Street Journal
(Februrary 3, 2009): B1.
Farfun, Barbara. “Retail Recession News: Consumer Belief Makes It So.” October 29,
2008. http://www.retailindustry.about.com
Farfun, Barbara. “January 2009 Same Store Sales Figures: Complete U.S. Retail Industry
Report.” January 29, 2009. http://www.retailindustry.about.com
Farfun, Barbara. “2009. Retail Industry Job Cuts: Top U.S. Retail Employee Layoffs and
Unemployment.” January 2009. http://www.retailindustry.about.com
“Macy’s, Inc. to Close 11 Stores.” Macy’s Press Release, January 8, 2009.
Macy’s, Inc. Annual Report for 2008 (April 2009)
Macy’s, Inc. Web site, http://www.macys.com