Shrinking in-store sales and shifts in consumer behavior are some of the problems that department stores have had to deal with since the advent of e-commerce. The situation is so extreme that Macy’s Inc (NYSE:M) is planning to close 68 of its 880 stores. In what the store is referring to as a restructure of operations, three closures have already occurred and it is obvious that this will result in shifts in the labor market.

The retailer is seeking ways to capitalize on spending on highest-growth-potential locations.  Macy’s outgoing CEO Terry Lundgren explains, “Our omnichannel strategies continue to evolve based on the changes in our customers’ shopping behaviors, including a focus on buy online, pickup in store and mobile-enabled shopping.”

Macy’s struggling to evolve as an e-commerce player

Just like any other department store chain, Macy’s has felt the sting of the so-called Amazon Effect. This has occasioned serious sales drops, an indication that customers are shopping elsewhere. Traffic at its stores has continued to decline despite the good performance of its online business.  Shopping tendencies are firmly against the Macy’s brand. A majority of sales of apparel, home goods, and other staple items, which were offered by the traditional department store, have been eaten up by Amazon.com, Inc. (NASDAQ:AMZN).

However, the chain store does not intend to disappoint its loyal customers.  It will still endeavor to enhance its e-commerce business even though revitalizing the business will be a tall order according to the chief executive at retail consultancy, Conlumino Neil Saunders

But the chain store seems to have strategies in place

Macy’s is executing various efforts to reorganize its management and reduce costs. For example, it has a prediction of saving close to $550 million from the closure of the said stores. This will enable the expansion of its digital business that requires an investment of $250 million. Lundgren says they have already invested in and enlarged their customer data, which will come in handy in driving home the new marketing strategies for 2017. Meanwhile, the store will also lay more focus on its remaining real estate assets as Macy’s President Jeff Gennette takes over its leadership.

In the meantime, Macy’s stock closed at $35.84 witnessing an increase of $0.61 or 1.73%.