Retail giant Macy's, Inc. (NYSE: M) announced it will close about a hundred stores over the next few years in order to restore its deteriorating profitability level. Macys has been struggling to profit during earnings as consumers progressively spend their money at off-price and online retailers. According to CNBC, Macys had outlined 68 of the stores it plans to close last month, the chain said Tuesday morning that it will close roughly 34 additional stores "over the next few years." It did not provide additional details regarding where those stores would be.
"This will give us a healthy physical portfolio," CEO Terry Lundgren told analysts, highlighting that bricks-and-mortar stores will remain important towards moving its business forward. Macy's comments came as it reported fourth-quarter earnings that topped Wall Street's muted expectations, despite its top-line and comparable sales once again contracting.
"While 2016 was not the year we expected, we made significant progress on key initiatives that are starting to bear fruit," Macy's Chief Executive Officer, Terry Lundgren said in a statement. "We will be investing for the future in 2017. Looking at the continued challenges in the retail environment and changing consumer shopping behaviors, we know we must evolve our strategy and execute faster," he added.