Macy’s planning to close location in San Leandro

Macy’s plans to close its San Leandro location, along with four other stores nationwide, according to the company and news reports.

A company spokesperson confirmed to the Chronicle on Thursday that the Macy’s anchoring San Leandro’s Bayfair Center would close. The Bayfair Center Macy’s employs 60 people, according to the company.

Store employees were informed before the news became public, and eligible employees will be offered severance benefits and the opportunity to transfer to neighboring stores, the spokesperson said.

“At Macy’s, we continue to reposition our store fleet to better meet the needs of our customers in each of our markets. After careful consideration, we have decided to close our Macy’s Bayfair Center store,” the spokesperson said in a statement.

The Bayfair Center store is one of five stores closing nationwide, according to a report by the Wall Street Journal. Citing an internal memo sent to employees Thursday, the Journal reported Macy’s will also close stores in Simi Valley (Ventura County); Tallahassee, Fla.; Lihue, Hawaii; and Arlington, Va.

Macy’s also plans to lay off about 2,350 employees — 3.5% of its total workforce — across both Macy’s and its subsidiaries, Bloomingdale’s and Bluemercury, the Journal reported.

In November, Macy’s Inc. — the parent company of all three brands — reported third quarter earnings of $43 million, down from $108 million in the same quarter in 2022. Net sales at the Macy’s stores were down 7% year over year both online and in-store, according to the company’s earnings report.

A source told the Journal that Macy’s would be redirecting funding from the closed stores and layoffs toward enhancing the digital shopping experience and upgrading the look of existing stores. The internal memo reviewed by the Journal reportedly said the changes were based on nearly a year of consumer research.

Closing sales at the Bayfair Center Macy’s will begin this month and run for eight to 12 weeks, the Macy’s spokesperson told the Chronicle.

“The decision to close a store is always a difficult one, but Macy’s is grateful to have served our customers and the community,” the spokesperson said.

“We remain committed to delivering a seamless shopping experience to our customers across channels, including neighboring stores at Southland Mall, Stoneridge Shopping Center, Newpark Mall, Broadway Plaza, Hillsdale Mall; and a premier digital shopping experience,” the spokesperson said.