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Economy

Macy’s To Close Mission Valley Store Amid Poor Sales

Shoppers walk past a Macy's window display in San Francisco, Nov. 25, 2016.
Associated Press
Shoppers walk past a Macy's window display in San Francisco, Nov. 25, 2016.

Macy’s announced Wednesday that it will be closing 68 stores and eliminating more than 10,000 jobs, including the Macy’s located at the Mission Valley Westfield Mall.

The closure of the Mission Valley location, which first opened in 1961, is expected to affect 140 employees.

The move comes after what Macy’s said was a disappointing holiday shopping season. The department store chain also lowered its full-year earnings forecast.

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Macy’s Inc. reported sales fell 2.1 percent in November and December compared to the same period last year. The retailer pointed to changing consumer behavior and said its performance reflects the challenges that are facing much of the retail industry.

The company said the 68 store closures are part of the 100 closings it announced in August. Of the 68, three were closed by the middle of 2016, 63 will close in the spring and two will be closed by the middle of 2017. Some employees may be offered positions at nearby stores but Macy's estimates that as many as 3,900 could be affected by the closures.

Macy's also said it plans to restructure parts of its business and sell some properties. This will lead to the reduction of 6,200 jobs. The moves are estimated to save $550 million annually.

Overall, Macy's said, the job reductions represent about 7 percent of its workforce.

The company, which owns the Macy's and Bloomingdale's brands, has been struggling with declining traffic in its stores, where the bulk of its business is still conducted. It said it is closing stores that are "unproductive or are no longer robust shopping destinations" as well as selling those with highly valued real estate.

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It plans to invest some of its savings in growing its digital business.

Macy's said it now expects to earn between $2.95 and $3.10 per share on an adjusted basis for its 2016 fiscal year, versus its prior forecast of $3.15 to $3.40 per share. The company is scheduled to report full results in February.

Shares in Macy's fell nearly 10 percent to $32.30 in after-hours trading.