The May Department Stores Co. (St. Louis) has announced it will divest 32 of its 86 Lord & Taylor stores as part of its strategic repositioning of the New York-based division as an upscale fashion retailer.
May says the affected stores are located in markets where Lord & Taylor lacks a major presence and generally operates a small number of stores. It says the divestiture will allow Lord & Taylor to focus on its core markets.
“While the decision to divest stores is difficult, we recognize that our division's overall performance is negatively affected by these underachieving locations,” said Lord & Taylor president and ceo Jane Elfers. “These stores represent 38 percent of Lord & Taylor's locations and produce only 19 percent of our sales. . . . We are generating strong returns and positive customer feedback in stores that are benefiting from our repositioning efforts.”
“We have worked very hard for the past several years to return Lord & Taylor to its heritage as an upscale retailer of distinctive fashion and style,” said May Co. chairman and ceo Gene Kahn. “As a result of today's actions, we fully expect Lord & Taylor's cash flow and return on investment to show a marked improvement, enhancing its contribution to May's total performance.”