Macy's Closing 100 Stores

Macy's shares jumped 17 to $39.78 by noon, as investors celebrated positive earnings reports by Kohl's Inc. and applauded Macy's plan to shutter about 15 percent of its department store doors.

The outlets that will be shuttered account for about 14 percent of Macy's 728 stores and about $1 billion in annual revenue.

The new initiative also detailed "capitalizing on opportunities within the company's real estate assets", which includes selling its San Francisco Macy's Men's Store on Union Square, with men's merchandise relocated within the main Macy's store.

The company did not say which locations would close and said they would be announced once final decisions are made.

The closures are likely to lead to the loss of thousands of jobs and create large vacancies at malls, which lead to less foot traffic and fewer sales for the remaining smaller stores.

Last May, Macy's chief executive officer Terry Lundgren announced, just after the company reported the lowest quarterly sales earnings since the most recent economic downturn, that they were not expecting consumers to spend more money.

Macys now operates 728 stores, including 675 full-line locations.

Tri-County is the oldest local Macy's store. A closure of that store would be a devastating blow to the mall, which already lost one of its four anchor stores when Elder Beerman closed earlier this year.

Macy's said it would invest in capacity-building on its sites and apps, improvement in natural language search, faster page loading, and simpler procedures for placing and fulfilling orders.

It's all part of a big change for retail: Oodles of other big-name brands, from Sports Authority to Ralph Lauren, have also closed locations lately as online shopping makes it harder for brick-and-mortar stores to survive.

The last Michigan Macy's to close was the location in Northland Center.

Amazon.com is by some forecasts expected to surpass Macy's as the largest online seller of clothing next year. That topped the $5.77 billion estimate from FactSet.

Even before Thursday's announcement, Lundgren had been slashing costs, closing stores and adding off-price options to appeal to customers.

Macy's outline its new strategies to boost sale by investing in strong stores, highlighting new vendors, increasing the quantities and quality of staff and mightily investing in new methods and technology.

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