Macy's profit falls nearly 13 percent as sales drop as well

NEW YORK (AP) — Macy's, the nation's largest department store chain, says its earnings for the quarter that includes the holiday period dropped nearly 13 percent as results were dragged down by lower sales, store closures and other costs.

Like many department stores, Macy's has faced sluggish sales as customers buy more online and less at the malls where they are often an anchor.

Macy's has also been under pressure from shareholders to get more value out of its real estate holdings, valued by activist investor Starboard at nearly $21 billion.

[...] Macy's had been a stellar performer after the recession, but has seen sales slow as it and other traditional department store chains face competition from online leader Amazon and off-price rivals.

Real estate research firm Green Street Advisors says about 800 stores, or 20 percent of all U.S. mall anchor space, would need to close to match the inflation-adjusted sales productivity of 2006.