Macy’s will close about 15 percent of its department stores by early 2017, the company announced Thursday.
Approximately 100 of Macy’s 728 operating stores will shut their doors, according to Macy's CEO Terry Lundgren, with the decision on which stores will make the massive cut to be released in the coming months.
“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 the announcement.
Macy’s hopes shifting their strategy to operating fewer storefronts will allow the company to maximize their digital shopping experience to stay competitive for the modern shopper.
“This involves doing things differently and making tough decisions as we position ourselves to serve customers who have high expectations of their favorite stores, online sites and apps,” Lundgren said.
The company said they will work with employees affected by the closures to find positions at nearby stores “where possible.” Those who are laid off will be offered severance benefits.
The closures were announced the same day Macy's reported its second-quarter profits and sales fell once again. The massive retailer earned $11 million, or 3 cents per share, in the quarter ended July 30. It is compared to the same period of the previous year, in which it earned $217 million, or 64 cents per share.
