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Macy's announces 5,000 job cuts, more store closures

USA TODAY logo USA TODAY 1/4/2018 Nathan Bomey

Video by Wochit Business

Macy's is planning 5,000 job cuts, including closure of seven previously unidentified stores and other cuts at remaining locations, as it seeks stability in a tumultuous climate for physical retail.

The retailer's cost reductions come after its holiday sales in stores open at least a year rose 1.1%.

Although the company described its holiday sales as "solid," the performance trailed fellow department-store chain J.C. Penney, which posted a 3.4% increase Thursday.

Macy's will shutter seven locations it had previously not identified for closure:

Miami (Downtown), Miami

The Oaks, Gainesville, Fla.

Novato (Furniture), Novato, Calif.

Honey Creek Mall, Terre Haute, Ind.

Birchwood Mall, Fort Gratiot Township, Mich.

Fountain Place, Cincinnati

Burlington Town Center, Burlington, Vt.

The retailer also said Thursday it is moving ahead with four other store closures previously announced:

Laguna Hills Mall, Laguna Hills, Calif.

Westside Pavilion, Los Angeles

Stonestown Galleria, San Francisco

Magic Valley Mall, Twin Falls, Idaho

The moves are part of a plan announced in August 2016 to close 100 stores. Altogether, the company has now revealed 81 of the 100 locations.

Net job cuts, including the closures and reductions at remaining locations, will total about 5,000, Macy's spokesman Blair Rosenberg said in an email.

The company also said it would add jobs in certain locations to properly staff stores.

Liquidation sales are likely to begin Jan. 8 and continue for eight to 12 weeks.

“Looking ahead to 2018, we are focused on continuous improvement and will take the necessary steps to move faster, execute more effectively and allocate resources to invest in growth," Macy's CEO Jeff Gennette said in a statement.

The company has been struggling with its massive real estate footprint and traditional retail model, as soars and physical competitors such as treasure-hunt retailers T.J. Maxx and Marshall's offer alternatives.

Despite the challenges, Macy's reported strong performances for active apparel, beauty products, shoes, dresses, coats, fine jewelry and some other items.

The company also said its digital sales jumped by double digits.

Related gallery: 17 retailers on the 2018 death watch (provided by The Motley Fool)

A big year for closings: <p> The past year has been a bleak one for many retailers. Over 20 retail chains -- including Radio Shack, Toys R Us, and HHGregg -- filed for bankruptcy, and some were liquidated. </p> <p> Things are not likely to get better in 2018. They may even be worse. </p> <p> "I think the early part of next year will be pretty bad ... I think it will be tough," Moody's lead retail analyst Charlie O'Shea told <a href=""> CNBC </a> . </p> <p> The 17 companies below all struggled in 2017. Many of them closed stores, and some have even filed for bankruptcy at least once before. These aren't the only retailers struggling as we head into 2018, but they are some of the most prominent. </p> 17 retailers on the 2018 death watch



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