Macy’s Plans to Shut Ten Department Stores in January

Macy’s said Thursday it is reconsidering when it will close the roughly 60 remaining open stores out of a batch of 125 that were on track to go dark by 2023. However, it said it plans to announce 10 closures in January, and it will provide additional details about those locations in the near future.

Chief Financial Officer Adrian Mitchell said that the delayed closure of certain stores allows us to maintain a physical presence in the market, which is critical to our top-line growth. The Digital performance is more robust in the markets where we have stores.

Macy’s has been testing off-mall and smaller-format locations as it closes its more prominent locations anchored at traditional malls. Mitchell said those openings have brought in strong sales that have exceeded the company’s expectations. He said the department store now sees a “clear path” with off-mall.

The announcement of additional closures comes as Jana Partners has taken a stake in the department store chain’s business. The activist investor is pressuring Macy’s to spin off its e-commerce operations from its stores, hoping to fetch a greater valuation than what has today. Macy’s CEO Jeff Gennette said Thursday that the company is working with the consulting firm AlixPartners to consider all options for its digital operations.