Macy’s to close 100 stores, locations not yet announced

(WANE) – Following the release of its second quarter earnings report, Cincinnati-based Macy’s announced plans to close 100 of its 728 stores.

The retailer indicated the locations of the closings will be announced at a later date and most of the affected stores will close in early 2017.

Macy’s has a store at Glenbrook Square mall in Fort Wayne and the two nearest stores to that location are in Muncie, Indiana and Lima, Ohio.

Macy’s decision to close stores is part of a strategy aimed at “recreating the Macy’s store portfolio” to operate in only the most attractive retail locations in the United States according to a press release on the company website.

“Nearly all of the stores to be closed are cash flow positive today, but their volume and profitability in most cases have been declining steadily in recent years. We recognize that these locations do not yield an adequate return on investment and often do not represent a customer shopping experience that reflects our aspirations for the Macy’s brand. We decided to close a larger number of stores proactively so we can invest in a winning customer experience in our most productive and highest-potential locations, as well as invest in growth sooner and more aggressively in digital and mobile,” said Jeff Gennette, Macy’s president, who has been tabbed to succeed Terry J. Lundgren as chief executive officer in the first quarter of 2017.

The Macy’s decision to close stores reflects an issue facing other department store chains, including Sears and JCPenney, as they face declining sales due to the growth of online shopping on sites like Amazon and competition from discount chains like Kohl’s.

Macy’s reported Thursday that second-quarter profits and sales fell. The results, however, beat Wall Street estimates, and its shares rose more than 14 percent, or $4.95 to $38.95 in early trading according to the Associated Press.