From IBISWorld

Macy’s has announced plans to close approximately 100 retail locations. The intended 15.0 percent store reduction is a response to the company’s struggling profit margins and a growing affinity toward online shopping. The company, which accounts for a 12.6 percent share of the $167.8 billion Department Stores industry, reports that many of the stores in their portfolio are more valuable as real estate holdings than as Macy’s retail locations. With fewer stores and employees, the company hopes to boost operating margins while remaining operational in 49 of the 50 top markets across the country.

Macy’s plans to focus more on its online retail channel, which has grown much more rapidly than its brick-and-mortar sales over the past five years. Over the next five years, with industry revenue expected to decline at an annualized 1.6 percent, many other department stores are also expected to reduce their store counts as falling brick and mortar sales threaten profit margins.