SAN FRANCISCO (AP/KRON)–Macy’s announced Wednesday it is closing 68 stores nationwide and eliminating more than 10,000 jobs following a disappointing holiday season. The department store chain is also lowering its full-year earnings forecast.
Two San Francisco stores have been or will be sold. The Macy’s inside Stonestown Galleria and the Union Square Men’s store will continue to operate on leases from their owners, according to store management.
The San Francisco stores will not have any layoffs. Macy’s owned the buildings where the stores were located and is now renting out the space on lease from new owners.
The retailer said Wednesday that sales at its established stores fell 2.1 percent in November and December compared to the same period last year. Macy’s Inc. pointed to changing consumer behavior and said its performance reflects the challenges that are facing much of the retail industry.
The company said it plans to close by midyear the 68 stores that are part of 100 closings announced in August. It also plans to restructure parts of its business and sell some properties. The moves are estimated to save $550 million annually.
Shares in Macy’s fell more than 8 percent in after-hours trading.