Business

Macy's to close 100 stores across the country

It’s unclear, as of Thursday, whether the Macy’s at the Boise Towne Square Mall will be closed.
It’s unclear, as of Thursday, whether the Macy’s at the Boise Towne Square Mall will be closed. Joe Jaszewski / Idaho Statesman

Department store giant Macy's said Thursday that it plans to close 100 stores, a dramatic step aimed at better equipping the retailer to survive the rise of online shopping.

It’s not known whether either of the two stores in the Treasure Valley will be closed. Macy's has a store at the Boise Towne Square mall and in the Nampa Gateway Center.

Macy's regularly prunes its store fleet, often announcing the closure of several dozen underperforming stores after the busy holiday season wraps up. But this summertime announcement that it will close 15 percent of its locations suggests that the chain has become more aggressive in girding its ailing business for the digital era.

Macy's has been in a rough patch recently, delivering six consecutive quarters of sales declines at its stores open more than a year. On Thursday, the company said it saw a 2.6 percent drop in comparable sales in the most recent quarter. The retailer's revenue was $5.87 billion in the quarter, down 3.9 percent from the same period last year.

In some ways, it should not come as a surprise that Macy's is closing more locations. Terry Lundgren, the retailer's chief executive, has said that the chain simply had too many stores for an era in which shopping is moving online.

Jeff Gennette, the Macy's executive who has been appointed to replace Lundgren in 2017, said in a statement that nearly all of the stores it plans to close are ones whose sales volume and profitability have been sliding.

"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," Gennette said in a statement.

The company said it would offer a list of the store that will close at a later date. It was not immediately clear how many jobs might be slashed due to the store closures.

Statesman staff contributed

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