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article imageMacy's announces plans to close as many as 40 stores nationwide

By Nathan Salant     Sep 10, 2015 in Business
Cincinnati - Department store retailer Macy's plans to close up to 40 locations next year, the Cincinnati, Ohio-based company announced Tuesday.
Macy's did not specify which stores were on its closure list, which it had not been finalized, but said the shutdowns would begin early next year, according to the Associated Press.
“While making the decision to close stores is difficult, we know it is necessary for us to remain competitive as customer shopping patterns continue to change,” Macy's CEO Terry Lundgren said Tuesday in a written statement.
The company said it usually closes a few stores for poor performance or to keep up with changing consumer tastes every year, and that laid-off workers would receive severance benefits and could be offered positions in nearby stores.
"Each year, we prune some stores that are our weakest performers so that we can concentrate our resources on the best locations and maintain a strong physical presence," Lundgren said.
There are 770 Macy's department stores, and the company also includes the Bloomingdale's department store chain and the newly acquired Bluemercury beauty stores.
Macy's also indicated it was adapting to a trend that sees middle-class shoppers trying to cut spending and doing more of their shopping online.
The company plans to open six lower-priced Macy's Backstage stores later this year and to open more of them next year.
Macy's also indicated that its sales have been hurt by a strong U.S. dollar over the past several quarters, which cut tourist spending, and a labor dispute that caused long delays at ports on the West Coast, the AP said.
But Macy's still is planning ahead.
The company said it would partner with a Hong Kong retailer to open a new online sales venture in China , the AP said.
More about Macy's, Department, Stores, Closing, Bloomingdale's
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