Business
Macy's in San Francisco's Union Square, Walmart in West Covina are closing because of low sales
It’s a bad time for lovers of big retail stores.
As Macy’s announced plans to close 30% of its locations, including its store in San Francisco’s Union Square, Walmart said it will shut the doors to its West Covina store — all blamed on underperformance.
Macy’s announced Tuesday that it would shut down 150 stores by 2026 and spruce up the remaining 350 stores in a turnaround effort after posting a fourth-quarter loss of $71 million on a nearly 2% slip in sales.
Dubbed “A Bold New Chapter,” the strategy also involves a bid for higher-end shoppers by opening 15 small-format Bloomingdale’s stores, called Bloomies, and 30 of its luxury Bluemercury cosmetics locations.
Macy’s hasn’t yet released a list of the 50 stores it will close this year. The 150 locations account for less than 10% of sales, Macy’s said.
The Macy’s in Union Square will be part of the 150 closures, as the retailer plans to sell its property there, San Francisco Mayor London Breed said in a statement Tuesday. Breed said that the store will remain open “for the foreseeable future” and that people will continue to be employed at the store. The San Francisco Chronicle reported that the store will remain open until at least 2025.
“The process to undergo the sale of their building to a new owner with their own vision for this site will take time,” Breed said in the statement. “The City will continue to work closely with Macy’s and any potential new owner to ensure this iconic location continues to serve San Francisco for decades to come.”
Department stores have struggled in recent years as middle-class shoppers have turned to discount chains. Many luxury brands, on the other hand, have managed to maintain their cachet.
Walmart said the decision to shut the West Covina store March 29 was made after a “thoughtful review process” that included factors such as historic and current financial performance. The retailer said there are currently no plans to shut additional stores in the area.
All of the store’s 237 employees will have the opportunity to transfer to nearby stores and will be paid through May 31, Walmart said. Eligible employees who do not transfer will receive severance after that date.
The store’s pharmacy will also close, and staff will work with customers to transfer prescriptions to other Walmart locations.
The Walmart, which is located at 2753 E. Eastland Center Drive, opened in 2012 and filled the anchor position in the Eastland Center shopping plaza. West Covina’s mayor at the time, Mike Touhey, told the San Gabriel Valley Tribune that the store was expected to generate $500,000 in sales tax revenue a year.
The closure isn’t expected to have a major effect on the city’s coffers, as Walmart accounts for about 1.5% of West Covina’s overall sales tax revenue, said West Covina Finance Director Stephanie Sikkema.
“It is unfortunate to lose any business in the city,” Sikkema said, adding: “We are diverse enough to withstand the closure.”
The city has reached out to the owner of the property to assist with next steps in finding a new tenant for the space, Sikkema said. The city is also working to assist affected employees through regional and state programs that help with issues such as writing a resume and applying for unemployment insurance, she said.
Business
AMC’s Adam Aron backs David Ellison’s takeover of Warner Bros. Discovery
As Hollywood has fractured over the proposed merger between Paramount Skydance and Warner Bros. Discovery, AMC Entertainment Holdings Chief Executive Adam Aron is throwing his support behind David Ellison.
The movie theater chief said he trusts that Ellison, Paramount’s CEO, will hold to his promise that the combined company will release 30 films a year — 15 each from Paramount and Warner Bros.
Many industry executives and other theater operators have questioned whether that goal is realistic, particularly given the cost cuts that are expected to commence after the deal closes. Exhibitors in particular fear that a decline in film releases will erase some of the progress made at the box office since the pandemic.
“Adam Aron and AMC are big fans of David Ellison,” Aron said during an interview Wednesday afternoon in Las Vegas, where he was attending the CinemaCon trade convention. “We respect his talent as a filmmaker and a movie executive, and we believe in the promises that he has made to increase the number of movies being made by Paramount and Warner Bros.”
Aron added that he trusts Ellison will respect calls to keep films in theaters for 45 days before they’re available for premium purchase at home and much later, on streaming services.
That strategy, known as windowing, became a more contentious issue after the pandemic when some studios began to reduce the amount of time films were in cinemas before audiences could view them at home.
“We’re enthusiastic that David will fulfill his promises,” Aron said. “And that in the end, this will prove to be a good thing for our company and our industry.”
He added that he hopes current Warner Bros. film chiefs Mike De Luca and Pam Abdy “continue to have the opportunity to do great work” at that studio. The pair led Warner Bros. to 30 Oscar nominations — more than any other studio this year — and 11 Academy Awards, including Best Picture.
After a difficult last few years, Aron said he feels like the theatrical business has “finally turned a corner.”
So far this year, domestic box office revenue is up more than 20% compared with the same time period last year, bolstering hopes across the industry that 2026 will mark a rebound from the downturn of the pandemic.
Last year, AMC saw a 2.1% decrease in attendance compared to 2024. But this year’s strong lineup of films has given Aron confidence that the company‘s revenue and earnings will rise this year.
The company is also working to pay down the debt it took on during the pandemic. The company had as much as $6 billion in debt in 2020 and is now down to $4 billion, Aron said.
“The big news of 2026 for us, in light of the rising box office, in light of rising EBITDA [earnings before interest, taxes, depreciation and amortization], and in paying down debt and extending maturities, I think we will have dramatically strengthened our balance sheet,” he said.
Aron also confirmed reports that Netflix Co-Chief Executive Ted Sarandos met with a group of movie theater chiefs in Las Vegas, a discussion he described as “introductory in nature” rather than about dealmaking since it was in a large group forum.
Netflix and AMC previously had a complicated relationship over the streaming service’s long-standing resistance to traditional theatrical releases.
But the two companies have recently partnered on several projects, including a Halloween weekend showing of the animated hit “KPop Demon Hunters,” New Year’s Eve screenings of the “Stranger Things” series finale and the first two episodes of the Netflix show “One Piece.”
Aron said AMC thoroughly embraced all three projects, and that both companies were pleased with the results.
“Both AMC and Netflix have individually said publicly that we hope this is the beginning of collaboration, and that we each expected more good joint projects to come in the future,” he said. “What those will be, I don’t even know yet, but I’m optimistic that we’ll be doing more things together with Netflix in the months and years ahead.”
Business
David Ellison hits CinemaCon, vowing to make more movies with Paramount-Warner Bros.
Paramount Skydance Chief Executive David Ellison made his case directly to theater owners Thursday, pledging to release a minimum of 30 films a year from the combined Paramount and Warner Bros. Discovery company during a speech at the CinemaCon trade convention in Las Vegas.
“I wanted to look every single one of you in the eye and give you my word,” Ellison said in a brief on-stage speech, adding that Paramount has already nearly doubled its film lineup for this year with 15 planned releases, up from eight in 2025.
He also said all films will remain in theaters exclusively for 45 days, starting Thursday. Films will then go to streaming platforms in 90 days. The amount of time that films stay in theaters — known as windowing — has been a controversial topic for theater owners, as some studios reduced that period during the pandemic. Theater operators have said the shortened window has trained audiences to wait to watch films at home and cuts into theater revenues.
“I have dedicated the last 20 years of my life to elevating and preserving film,” said Ellison, clad in a dark jacket and shirt with blue jeans. “And at Paramount, we want to tell even more great stories on the big screen — stories that make people think, laugh, dream, wonder and feel — and we want to share them with as broad an audience as possible.”
Ellison’s CinemaCon appearance comes as more than 1,000 Hollywood actors and creatives have signed a letter opposing Paramount’s proposed acquisition of Warner Bros. Supporters of the letter have said the deal would reduce competition in the industry and “further consolidate an already concentrated media landscape.”
Some theater operators have also questioned whether the combined company could achieve its goal of releasing 30 films a year, particularly after the cost cuts that are expected after the merger closes.
“People can speculate all they want — but I am standing here today telling you personally that you can count on our complete commitment,” Ellison said. “And we’ll show you we mean it.”
The speech came after a star-studded video directed by “Wicked: For Good” director Jon M. Chu that was shot on the Paramount lot on Melrose Avenue and showcased directors and actors including Issa Rae, Will Smith, Chris Pratt, James Cameron and Timothée Chalamet that are working with the company.
The video closed with “Top Gun” actor Tom Cruise perched atop the Paramount water tower.
“As you saw, the Paramount lot is alive again,” Ellison said after the video. “And we could not be more excited.”
Business
Video: Why Your Paycheck Feels Smaller
new video loaded: Why Your Paycheck Feels Smaller
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