Macy Inc. stated that it plans to close 11 of its stores as a cost cutting move. For the month of December, Macy's reported a 4 percent drop in same store sales, leading the company to slash its earnings estimates for its fourth quarter to 90 cents to $1 from its previously announced $1.10 to $1.30.

Macy's who has recently been struggling with slower sells announced plans to eliminate 2,300 positions. The news comes after Macy's reported revenues 28.4 percent lower then this period a year prior.

Macy's announced Friday that it plans on closing nine stores across Indiana, Ohio, Louisiana, Oklahoma, Utah, and Texas. Macy's reported that 899 employees affected by the closing would be offered jobs at nearby stores where possible. Macy's stated that the plan is to close stores with declining sales in areas with lower growth opportunities. Macy's still plans on opening five new stores in 2008.