Department store operator Macy’s announced Thursday that it’s closing an additional 100 stores, or about 14 percent of its locations, as it continues to grapple with the migration of customers from brick-and-mortar stores to online shopping.
The majority of those stores will close in early 2017, the Cincinnati-based company said in a press release. Macy’s said it’s still determining which locations it will shutter.
The company plans to reallocate resources to its “highest-growth-potential store and digital businesses,” according to the release.
“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 press 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.”
The retailer has 12 stores and employs about 2,500 people in Missouri, the St. Louis Business Journal reports. There are 728 Macy’s-branded stores nationwide.
The 100 stores Macy’s plans to eliminate in its latest round of cuts represent about $1 billion in annual sales, the company said, but those stores are more valuable as real estate assets than retail stores.