Macy’s Inc., the largest U.S. department-store company, plans to close as many as 40 stores early next year as it trims costs and works to improve e-commerce operations.
The stores set for closure represent about 1 percent of the company’s sales, Cincinnati-based Macy’s said Tuesday in a statement. The retailer said the exact locations will be announced later, after final decisions have been made.
Chief Executive Officer Terry Lundgren is experimenting with low-priced outlets and working to improve Macy’s online business as mall traffic dwindles and shoppers search for deals. The retailer also is under pressure from hedge fund Starboard Value to extract more value from its real estate holdings.
Macy’s rose 1.3 percent to $59.17 at the close in New York. The shares have fallen 10 percent this year.