Lord & Taylor just announced that they will be closing their flagship New York City store in Manhattan. The parent company, Hudson’s Bay, disclosed this with the recent publishing of their earnings report with up to nine other locations facing possible closing by the end of 2019.
In October the company announced that the 5th avenue building will be purchased by a co-working real estate company, WeWork, that will serve as the new global headquarters. The initial plan would allow for Lord & Taylor to have a store with some floors of the building, but has decided that Lord & Taylor will not maintain a presence in this store.
The retailer is also focusing on cutting physical stores and focusing on business through their e-commerce website for greater profitability. Hudson’s Bay is planning on reducing the store network to allow new leadership to, “re-think the model and better position Lord & Taylor for future success.”
The cut-back in store locations can leave up to one of every five Lord & Taylor locations could close throughout 2019. This change comes with reports of declining sales for Hudson’s Bay’s 488 stores including Saks Fifth Avenue and Hudson’s Bay. The sales of recently opened stores (of at least a year) fell o.7 percent in the quarter ended May 5.
The official closing of the store is planned for early next year, so holiday shoppers can enjoy shopping at the flagship location before officially closing. Check out the video above to learn more about the new direction of Lord & Taylor department stores.
