NEW YORK — Macy’s West/Bullock’s, a division of Federated Department Stores, plans to spend $550 million to strengthen its position in the West over the next six years.
The plan, unveiled Tuesday, includes converting five I. Magnin stores to Bullock’s and Macy’s specialty stores; closing the Bullock’s store in Scottsdale, Ariz.; reopening a Bullock’s in Northridge, Calif.; remodeling as many as 15 Macy’s and Bullock’s stores within five years, and opening a new Macy’s furniture and home store in Fresno, Calif.
Michael Steinberg, chairman of Macy’s West/Bullock’s, said the Scottsdale store yielded unsatisfactory profits and productivity and noted it was particularly difficult to achieve satisfactory numbers since it was the only Bullock’s in the market.
“In a very competitive retail environment, it is hard to establish a meaningful presence in a one-store market,” Steinberg said. “For this reason, we determined that we could make better use of our capital and available resources by focusing on stores in markets that already are highly productive and profitable.”
Federated, which in December merged with R.H. Macy & Co., anticipates closing the store May 31. The company was able to reject the lease under the terms of Macy’s bankruptcy reorganization.
The former I. Magnin in Palos Verdes will become a Bullock’s women’s specialty store on Friday; the former Magnin in Palm Desert will be divided into a Bullock’s men’s store opening in June and a home store opening in August; the ex-Magnin in Woodland Hills, Calif., will become a Bullock’smen’s specialty store in June; the former Magnin in Walnut Creek, Calif., will become a Macy’s women’s specialty store in June, and Magnin’s in Stanford, Calif., will become a Macy’s men’s specialty store in June.
Steinberg said the division also plans a fall opening of a new Macy’s furniture and home store in the Market Place at River Park in Fresno, Calif. The store will be Macy’s West’s seventh freestanding home furnishings store opened since 1987.
“We have a strong presence in this area and an equally strong belief that this is an area in which we will see significant growth in the next few years,” Steinberg said. “We see this as an area where there is tremendous potential for Macy’s West.
The Bullock’s Northridge store, which has been closed since Jan. 17, 1994, as a result of damage suffered in the Southern California earthquake, is slated to reopen in mid-August