Will store closings and layoffs fix what ails Macy’s?

The move follows a same-store sales decline of 4.7 percent in November and December, reflecting a dismal holiday season for department stores.

The company plans to reduce its SG&A expense by approximately $400 million, but it will keep investing in growth strategies.

Some 2,110 of the job cuts will come from reducing staffing levels at stores, eliminating duplications in back-office operations and consolidating regional store groups.

Macy’s, Inc. (NYSE:M) had its price target reduced by Citigroup Inc. from $43.00 to $40.00 in a report released on Thursday morning, AnalystRatingsNetwork.com reports.

The closest stores to the Capital Region that are scheduled to close are at the Berkshire Mall in Lanesborough, Mass., and at Hudson Valley Mall in Kingston, N.Y. Four stores have already been closed. The Macy’s in Pittsburgh also recently closed.

The company also has five Macy’s or Bloomingdale’s stores that are planned for an opening, or that are under construction. Hours after Macy’s announced its same-store sales fell 4.7 percent in November and December, Penney’s countered with a 3.9 percent gain.

“Despite unprecedented warm weather that significantly affected apparel sales across the company, our focus on private brands, enhanced omnichannel execution and compelling gift giving selection resulted in strong holiday sales”, J.C. Penney Chief Executive Marvin Ellison said in a statement.

Macy’s plans to open about 50 Macy’s Backstage discount stores in the next two years, mostly within existing Macy’s stores.

Macy’s said Wednesday that it now expects its profit for its fiscal fourth quarter and full year, which run through January, to fall short of its previous estimate.

“This reflects a smaller portfolio of stores and new technologies and techniques for managing the store business and tailoring assortments to local customer preferences”, the company added. On Wednesday the company listed 36 stores slated to close early this spring, including ones in Los Angeles, Buffalo and Fort Worth.

Macy’s, Inc. chairman and CEO, Terry J. Lundgren: “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”.

The stock suffered through a rough 2015 and has fallen more than 40 percent in the last 12 months.