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Mervyns To Shutter 62 Stores

HAYWARD, CA-Mervyns is closing 62 underperforming stores, which represent "a significant drain" on the company's profitability.

By Dana Dubriwny | Updated on September 07, 2005

HAYWARD, CA-Under a new strategic business plan, Mervyns is closing 62 underperforming stores, which represent “a significant drain on the company’s overall profitability” in order to focus on more profitable locations. According to a company statement, the shuttered stores make up nearly 25% of all Mervyns’ stores, but only generate 17% of total sales.

The company says it plans to exit the Michigan and Oklahoma markets, as well asparts of Colorado, Louisiana and Texas, by February 2006. It will also close three stores, one each in Southern California, Oregon and Utah and two distribution centers, one each in Plano, TX and West Valley, UT. Until that time, the stores will remain in operation, with new merchandise arriving at the stores throughout the fall and holiday seasons. A total of 1,200 full time and 3,600 part-time positions will be affected by the closures.

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