Macy’s said it will close 65 stores this year, an increase from its previous 50 locations previously announced it would be closing until the end of the financial year. The closures are part of a plan to close around 150 underperforming stores over the next three years.

The department store chain announced the update in its third-quarter earnings release on Wednesday.

“We now expect to close approximately 65 locations this year,” Macy’s CEO Tony Spring said on the conference call. “Consistent with our typical operations, there will be closures following the holidays.

Macy’s delayed the release of its third-quarter results following an employee breach hid up to $151 million in expenses related to small package delivery. The retailer, which also owns Bloomingdale’s and Bluemercury, said last month that it discovered the accounting problem in one of its accrual accounts while preparing its quarterly financial statements.

The company released new details about the incident on Wednesday, saying an independent investigation found that “a single employee responsible for billing the delivery costs of small packages intentionally made erroneous accrual entries and falsified the underlying documentation.” said in a filing with the Securities and Exchange Commission.

Adrian Mitchel, chief operating officer and chief financial officer at Macy’s, said the mistake was “not theft” and that there was “no impact on revenue and no impact on cash or inventory as all vendors were paid in full.”

The company said it is reviewing its controls over financial reporting.

Department stores are struggling

Macy’s isn’t the only one closing brick-and-mortar locations. The retailer’s Acceleration of branch closures comes at a time when department stores are struggling as fewer shoppers visit malls and more Americans shop online.

US retailers have announced more than 7,100 store closures through the end of November 2024. This corresponds to an increase of 69% compared to the same period last year, according to current data from market research company CoreSight. According to the report, 45 retailers have filed for bankruptcy protection so far this year, compared to 25 retail bankruptcies in all of 2023.

Macy’s, meanwhile, is banking on the success of its other brands, Bloomingdale’s and Bluemercury. The company plans to open 15 Bloomingdale’s stores and 30 Bluemercury stores over the next three years, while also remodeling about 30 existing Bluemercury stores, the company said.

Macy’s stock has fallen about 20% over the past year.