Macy’s in Visalia is at risk of closing due to weak sales, Morningstar Credit Ratings said Wednesday.
The store is one of 28 nationwide identified by Morningstar as having sales below the company per-square-foot average – a standard industry measure – and at risk of being closed.
Last week, Macy’s said it plans to close 100 stores but did not announce which stores are on the chopping block.
Visalia Mayor Steve Nelsen said if Macy’s were to close, “that’d be a real hit.”
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Gail Zurek, president and CEO of the Visalia Chamber of Commerce, said Macy’s is important to the community.
That’d be a real hit.
Steve Nelsen, Visalia mayor
“First and foremost is the jobs,” she said. “I’d hate to lose the jobs. People are supporting their families.”
Additionally, the store is a sales tax generator for the city and an anchor tenant for Visalia Mall on Mooney Boulevard.
“The mall is in a period of renaissance” with the addition of Blaze pizza, Triangle Hamburgers and a facelift at the Red Robin restaurant, she said.
Morningstar Credit Ratings said it analyzed available store sales information and found 28 locations “that have an elevated risk of being closed” due to sales below Macy’s average of $169 per square foot of retail space.
The figure for the Visalia store is $154 per square foot.
The other California stores named by Morningstar are in Lakewood and Concord.
Macy’s, which closed 40 stores this spring, reported another quarter of falling profit and sales last week.
Macy’s spokeswoman Raegan Gall said Wednesday, “We have not finalized decisions on stores to be closed. We are currently in the process of analyzing the situation of each store so we can make these important decisions as intelligently as possible.”