>> America's best know department store, shutting the doors on 100 locations. The big problem at Macy's, younger shoppers can get everything they want on Amazon. And the rest of America is flocking to discounters such as T.J. Maxx, where they can buy stuff on the cheap. Sales at Macy's are down six straight quarters, and that pain has left it no choice but to go on the fast retail diet and announced Thursday morning.
>> I'm Kanway Ginz, in New York. Macy's CEO, Terry Lundgren, says that, given the current climate, America is now over-stored. Elaborating on CNBC, he says that the US has 7.3 square feet of shopping space per consumer. That's more than five times the amount of other major economies, like the UK, France, and Japan.
>> Macy's is the latest of a string of retail giants throwing up their hands when it comes to actual physical stores. Smaller rival Kohl’s saying Thursday, its planning to spend the next five years moving into smaller stores. But Macy’s isn’t totally giving up its landmark locations, especially in key places, such as New York and San Francisco.
It’s going to pour more money into staffing and top markets with the goal of giving shoppers something they can’t get online, a human touch. Investors shown renewed faith in Macy's latest plan, and a smaller than expected drop in sales also helping, driving the stock to its biggest one day surge since Christmas eve, 2008.