After a disappointing holiday season, Macy's said it is cutting more than 10,000 jobs and going ahead with plans to close 68 stores — including locations in San Diego and Santa Barbara.
The department store chain reported Wednesday that same-store sales in November and December dropped 2.1% compared to the same period a year earlier. Macy's also lowered its full-year earnings guidance to $2.95 to $3.10 per share, down from a previous forecast of $3.15 to $3.40.
Terry J. Lundgren, chief executive of Macy's, said the company "had anticipated sales would be stronger."
"We believe that our performance during the holiday season reflects the broader challenges facing much of the retail business," he said in a Wednesday statement.
Although Macy's has been doing well online, traffic continues to decline in brick-and-mortar stores, which Macy's relies on for the majority of its business, Lundgren said. The changes will save the company about $550 million beginning this year.
Macy's said the 68 stores are among about 100 locations that it announced in August it would close. Three, including one in North Hollywood, closed last year. Locations in San Diego and Santa Barbara are earmarked for closure this year, along with a store in Simi Valley that offers home goods and men's and children's clothing.
Macy's isn't the only retailer cutting back in the aftermath of a challenging holiday season. On Wednesday, Sears said it planned to close 150 locations — 42 of its namesake stores and 108 Kmart stores — according to the Business Insider.