Macy's to close 9 underperforming stores

CINCINNATI -- "While the decision to close stores is difficult, it is necessary that we do so selectively in locations with declining sales and where we have been unable to identify sufficient growth opportunities," said Terry Lundgren, Macy's chairman and CEO.

Macy's is closing stores in Indiana, Ohio, Louisiana, Oklahoma, Utah and Texas.

The retailer said the closings would affect 899 employees, who would be offered positions in nearby stores where possible. It said employees laid off in the process would be provided severance benefits and outplacement assistance.

Macy's has faced disappointing sales and resistance from shoppers in some markets where the Macy's name replaced local favorites it absorbed as part of its acquisition of May department stores. The company last month swung to a profit of $33 million in the third quarter in contrast to a slim loss the prior year.

The company has been undergoing realignment and this year opened 10 new stores and one furniture gallery.

Macy's said Friday it expects to open five stores in 2008 and an additional six to eight new locations are planned for 2009.

Macy's operates more than 850 department stores in 45 states, the District of Columbia, Guam and Puerto Rico under the names Macy's and Bloomingdale's.

Macy's shares rose 44 cents, or 1.8%, to close at $25.48 Friday.

Contributing: Reuters