Macy’s will announce in the coming months whether any of its 19 Michigan locations will be part of 100 closures planned for early 2017.
The company said Thursday it has to make final decisions about which of its 675 stores around the country to close.
The department store announced Thursday plans to re-create “its physical store footprint to capitalize on Macy’s unique competitive advantage operating in the most attractive retailing locations in America.”
Macy’s has stores in Dearborn, Taylor, Troy, Westland, Novi, Ann Arbor, Battle Creek, Lansing and Flint, among other Michigan locations.
The announcement comes after Macy’s reported slipping second-quarter sales and profits. The store earned $11 million in the quarter ending July 30, which fell significantly from earnings of $217 million a year prior.
The closings will “enhance shareholder value and strengthen Macy’s as America’s preferred omnichannel shopping destination,” according to a 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,” said Terry J. Lundgren, Macy’s Inc. chairman and chief executive officer, in a 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 changes rethink the role of physical stores, according to Jeff Gennette, Macy’s president. They put the company in a position to grow long-term.
“We will continue to carefully analyze consumer shopping patterns and trends, and use data and customer insights as the basis for innovations to drive the business,” he said. “You can look forward to a company that expedites decision-making, moves faster, and is bolder in its approach to the customer.”
Macy’s intends to keep a presence in 49 of the top 50 U.S. markets. There are currently 675 “full-line” locations in the country.
The company said it will announce specific closures “at a later date.”
All of the stores it plans to close are “cash flow positive today, but their volume and profitability in most cases have been declining.”
Employees displaced by any closures will be offered positions in other stores where possible, the company said.