Macy's northern unit facing major cuts

MINNEAPOLIS, Jan. 12 (UPI) -- Macy's Inc. is set to cut 271 jobs from its northern unit, including nearly 50 jobs from the company's northern division headquarters in Minneapolis.

Prompted by decreased holiday sales by the department store holding company, the planned cuts will include nearly 100 jobs in the Chicago region, 70 positions in Detroit and a total of 100 jobs in the Minneapolis area, the Chicago Tribune said Saturday.

The company initially had forecast a 4 percent to 7 percent decline in its December sales, but Friday the sales group revealed it saw a 7.9 percent decline.

Platt Retail Institute Director Steven Platt said that since absorbing hundreds of regional department stores into the Macy's family in 2006, the company's northern unit has struggled.

"The business isn't performing so they've got to cut costs to be aligned with revenue," Platt told the Tribune. "It's how you have to run a business, particularly a retail business."

Along with cutting the 271 jobs from the troubled division, Macy's reportedly has plans to discontinue the majority of its wine business and close several of its regional food operations.