Macy’s plans to close 100 U.S. stores

Macy’s said Thursday it plans to close about 100 stores in the U.S. as part of a broader overhaul of its business.

Locations weren’t announced, and it is unclear if any Georgia stores are slated for the chopping block. But the company said most closures will occur early next year after the busy upcoming holiday shopping season.

Macy's announced 36 store closures earlier this year, including its location at North DeKalb Mall.

Macy’s and many traditional retailers are coping with slumping sales amid dramatic shifts in consumer preferences, including the rise of online shopping.

In other cases, traditional malls where many big box retailers like Macy's call home are losing their luster to newer retail centers that mix events, boutique retailers, high-end restaurants and other uses.

The company said it plans to redesign the footprint of its other stores and invest in its most profitable locations and other growth areas such as online sales.

As part of this broader shift, Macy’s said it will look to capitalize on the value of its real estate holdings, with many of the stores slated for closure being worth more to the company as a property to be sold than as a functioning store, the company said in a news release.

Macy’s said it will retain operations in 49 of the Top 50 U.S. retail markets. Macy’s operates 728 stores in the U.S. and the closures will amount to about 14 percent of its domestic locations. It’s unclear how many jobs will be cut as a result of these moves.

“We operate in a fast-changing world, and our company is moving forward decisively to build further on Macy’s heritage as a preferred shopping destination for fashion, quality, value and convenience,” Macy’s Chairman and CEO Terry Lundgren said in the release. “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.”

Though most stores will close early next year, others will be shut down after the expiration or termination of leases and other contracts. The locations of closures will be announced at a later date, Macy’s said.

“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,” Macy’s President Jeff Gennette said. “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.”

Macy’s said it has closed 90 stores in the past six years and opened 13 others in that time.