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Macy's to close around 100 stores as profits decline

5 months 1 week 3 days ago August 11, 2016 Aug 11, 2016 Thursday, August 11 2016 August 11, 2016 8:26 AM in News
Source: CNN
Image: Hixson Inc Architects

Macy’s has announced plans to close around 15 percent of its department stores as the chain continues its efforts to adjust to shifting consumer preferences.

There's no word yet concerning the Mall of Louisiana location because Macy’s has yet to disclose which specific stores will be closing, but most of them are expected to close early next year. It amounts to around 100 store closures around the country.

Among the chief pressures cited by Macy’s is an increasing shift toward online shopping that is keeping customers away from their traditionally-styled department store setups.

Macy’s says its new strategy is to concentrate on its best-performing locations. The plan is to invest in its strongest stores by adding new vendor shops, along with investing in technology.

"We operate in a fast-changing world, and our company is moving forward decisively to build further on Macy's heritage," Macy's CEO Terry Lundgren said in a statement.

Macy’s has seen a steady decline in profitability and sales in recent years. Other cost-cutting measures beyond store closings are also in the cards for the chain if it wants to stay afloat.

Employees at stores that are destined to get the ax will be offered employed in nearby stores “where possible,” according to Macy’s. Severance benefits will be offered to those who are laid off.

"Macy's is committed to treating associates affected by store closings with respect and openness," the company said.

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