Lord & Taylor Will Close Flagship Store On Fifth Avenue
NEW YORK (CBSNewYork/AP) – Lord & Taylor says it will close its flagship store on Fifth Avenue.
Tuesday's announcement comes about seven months after its parent company, Hudson's Bay Co., said it would sell the century-old building to shared workspace company WeWork for $850 million. Hudson's Bay initially said it would keep part of the 11-story building for a Lord & Taylor store.
The parent company, which also runs Saks Fifth Avenue and other stores, said it expects to close up to 10 of its nearly 50 Lord & Taylor locations through 2019. The flagship store is expected to close in early 2019.
Lord & Taylor was the first to create Christmas displays for entertainment, rather than selling merchandise. It also pioneered the animated window display in 1938.
Like its competitors, Lord & Taylor is wrestling with a shift as consumers shop online and less at department stores. Chains like J.C. Penney and Macy's are closing unprofitable stores, and Bon-Ton Stores Inc. is liquidating its business. Sears Holdings Inc. has been selling off key assets while closing stores as well.
Lord & Taylor's decision not to keep the Fifth Avenue store is the latest move under the new Hudson's Bay CEO, former CVS Health executive Helena Foulkes, who took over in February.
Hudson's Bay had also announced Monday that it is selling its flash sales site Gilt Groupe to rival Rue La La. When it bought the brand two years ago, Hudson's Bay touted the purchase as a way to rev up online sales, but business didn't live up to the company's expectations.
In the meantime, Lord & Taylor is working with Walmart and launching a dedicated site on the discount retailer's website. The new shop began rolling out last month and features more than 125 brands.
(© Copyright 2018 CBS Broadcasting Inc. All Rights Reserved. The Associated Press contributed to this report.)