Macy's to close 40 stores across the U.S., cut 4,800 jobs

After a holiday shopping season that saw sales fall 4.7 percent in November and December, Macy's is cutting 4,800 jobs and closing 40 stores, the company announced Wednesday.

Chief Executive Terry J. Lundgren blamed slumping sales on a strong U.S. dollar that kept international tourists from spending a lot and warm weather in the northeastern part of the United States, The Wall Street Journal reports. "About 80 percent of our company's year-over-year declines in comparable sales can be attributed to shortfalls in cold weather goods, such as coats, sweaters, boots, hats, gloves, and scarves," he said. The company said it expects to see sales continue to decline this month.

There are about 770 Macy's stores across the United States, and the 40 slated to be closed include locations in California, Virginia, Ohio, New York, New Jersey, and Hawaii. Roughly 2,700 of the eliminated positions will come from those stores.

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up