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Macy’s says it is eliminating more than 10,000 jobs and plans to move forward with 68 store closures after a disappointing holiday shopping season. The department store chain also lowered its full-year earnings forecast.

The retailer said Wednesday that sales at its established stores fell 2.1 percent in November and December compared to the same period last year. Macy’s Inc. pointed to changing consumer behavior and said its performance reflects the challenges that are facing much of the retail industry.

As if to underscore that point, Kohl’s Corp. also reported disappointing holiday shopping numbers Wednesday.

Macy’s said the 68 store closures, which span the nation, are part of the 100 closings it announced in August. Of the 68, three were closed by the middle of 2016, 63 will close in the spring and two will be closed by the middle of 2017.

Some employees may be offered positions at nearby stores, but Macy’s estimates that 3,900 employees will be affected by the closures.

Macy’s also said it plans to restructure parts of its business and sell some properties. This will lead to the reduction of 6,200 jobs. The moves are estimated to save $550 million annually.

The company, which has been under pressure from investors to sell some of its valuable real estate, is selling or has sold three locations. It is leasing the properties back and will keep operating those stores.

Overall, Macy’s said, the job reductions represent about 7 percent of its workforce.

The company, which owns the Macy’s and Bloomingdale’s brands, has been struggling with declining traffic in its stores, where the bulk of its business is still conducted.

Longtime CEO Terry Lundgren, who is stepping down early this year and will be succeeded by Macy’s President Jeff Gennette, said in a statement the company is closing stores that are “unproductive or are no longer robust shopping destinations” as well as selling those with highly valued real estate.

Macy’s has seen sales growth slow as it and other traditional department store chains face competition from online and off-price rivals. It has tried new ways to attract shoppers, such as by offering more exclusive products, designating areas featuring “smart watches” and launching an Apple shop at its flagship New York store in Herald Square.

The company said Wednesday it plans to invest some of its savings in growing its digital business.

It said it now expects to earn between $2.95 and $3.10 per share on an adjusted basis for its 2016 fiscal year, versus its prior forecast of $3.15 to $3.40 per share. The company is scheduled to report full results in February.

Shares in Macy’s fell more than 10 percent to $32.20 in after-hours trading.

Kohl’s shares fell almost 15 percent to $44.15 after it cut its earnings guidance for fiscal 2016. It now expects $3.60 to $3.65 a share on an adjusted basis, down from its previous forecast of $3.80 to $4.00 per share.

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(Photo Source: AP)

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7 thoughts on “Macy’s To Close Stores, Cut Jobs Amid Weak Sales

  1. Most people don’t shop at Macy’s because their prices are waaaay to high for the average person. MOST people that do a lot of shopping are YOUNG people, and realistically speaking a lot of young people don’t make a lot of money so they can’t afford Macy’s prices. To the contrary lines are out of the door, and around the corner at H&M and Forever 21. Plus the online shopping is a factor (which I don’t get) because I would rather be outside, in a mall amongst people socializing than sitting in front of a computer, or on a cell phone ordering shigady. Which in part explains why so many young people don’t know how to verbally communicate. For the record….there are (some) young people make decent money; but there are so many that don’t. Macy’s nor JCPenney are Trendy….and that’s what young people look for……the Trend

    • That’s just it Thanks to The Don they can now go to Ford, Carrier or GM all of which are
      Terminating plans of going abroad vs. Obama or Obama 2.0 (Hillary) who would have them going to the WELFARE/FOODSTAMP lines

      • Sheryl on said:

        Trumps not saving shit. Those jobs were staying in spite of him. As a GM retiree who’s job left do to nafta 10 yrs ago. It wasn’t bc of Obama. Dumya was prez

  2. S.H. Magruder on said:

    Macy’s clothing selection is horrible. Stopped shopping there because I could not find fashionable up to date selections for women. They need to update their inventory to reflect the kind of fashions older and younger women would like to wear

    • redbone1954 on said:

      Agree the Macy’s and Kohls near me are both horrible i don’t know who is purchasing their crappy high priced clothes but it is so sorry the Macys near me doesn’t even carry plus size dresses!!!!! OK miss me as a customer. Everytime they offer a coupon ther are so many things you can’t use the coupon for so I just leave the store. I don’t shop there any more. Also in order to get a Macys card you have to have a credit score over 8oo!!!!!! Kick rocks Macys and bye!

  3. With the convenience of shopping on-line-brick and mortar stores may soon be extinct.

    Department stores have no one to blame but themselves. Most have useless sales people-who only come to your assistance if they assume you are there to SHOPLIFT. Like I always tell the

    So, why be bothered with all that hassle, when you can just go on-line. Browse, shop, click!!!!!!

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