Macy’s closing 35 to 40 ‘underperforming’ stores in 2016

In this Feb. 19, 2015 photo, Macy's shoppers leave the retailer’s flagship store, Thursday, Feb. 19, 2015 in New York. (AP Photo/Mark Lennihan)

Macy’s is set to close dozens of stores in early 2016.

The retailer announced plans on Tuesday, Sept. 8, that they will be closing 35 to 40 “underperforming” stores.

Macy’s CEO Terry J. Lundgren says the move is a way to “prune” the weakest performing 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. At the same time, we open a small number of new stores to fill gaps in our market coverage or where we have outstanding real estate opportunities,” said Lundgren.

Macy’s operates 770 stores but has closed 52 locations and opened 12 new stores over the past five years. They company is also opening six Macy’s Backstage locations in fall 2015.

The company did not disclose the locations that will be impacted or how many jobs would be lost.

Macy’s said they will communicate store closings directly with the associates in those locations prior to a public announcement.

The company says that displaced employees may be offered positions in nearby stores where possible, and that eligible laid off workers will be offered severance benefits.

Macy’s Inc. also owns Bloomingdale’s chain and beauty retailer Bluemercury.

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