NEW YORK CITY -- Macy's says it will close 11 underperforming stores in nine states, affecting 960 employees, after one of the weakest holiday seasons in years. The store at Battlefield Mall in Springfield is not included.

Macy's says its sales in December at stores open at least a year, a statistic known as same-store sales, fell 4 percent. That's better than the 5.3 percent drop that analysts surveyed by Thomson Reuters expected. However, Macy's is lowering its forecast for the fourth quarter and full year due to heavy markdowns.

Here's the company's (edited) news release:

CINCINNATI -- Macy's, Inc. (NYSE:M) announced the closing of 11 underperforming Macy's stores.

"These closings are part of our normal-course process to prune underperforming locations each year in order to maintain a healthy portfolio of stores," said Terry Lundgren, chairman, president and chief executive officer of Macy's. "While new store growth has slowed in the current economy, our long-term strategy is to continue to selectively add new stores while closing those that are underperforming."

Stores to be closed are in:

-- Ernst & Young Plaza (Citicorp Plaza), Los Angeles, Cal. (135,000 square feet; 136 employees; opened in 1986)

-- The Citadel, Colorado Springs, Col. (195,000 square feet; 105 employees; opened in 1984)

-- Westminster Mall, Westminster, Col. (156,000 square feet; 110 employees; opened in 1986)

-- Palm Beach Mall, West Palm Beach, Fla. (190,000 square feet; 71 employees; opened in 1979)

-- Mauna Lani Bay Hotel, Island of Hawaii, Hawaii (3,000 square feet; 3 employees; opened in 1983)

-- Lafayette Square, Indianapolis, Ind. (160,000 square feet; 84 employees; opened in 1974)

-- Brookdale Center, Brooklyn Center, Minn. (195,000 square feet; 72 employees; opened in 1966)

-- Crestwood Mall, St. Louis, Mo. (166,000 square feet; 176 employees; opened in 1969)

-- Natrona Heights Plaza, Natrona Heights, Pa. (73,000 square feet; 124 employees; opened in 1956)

-- Century III Furniture and Clearance, West Mifflin, Pa. (83,000 square feet; 3 employees; opened in 2000)

-- Bellevue Center, Nashville, Tenn. (211,000 square feet; 76 employees; opened in 1990).

Final clearance sales at these stores will begin within the next week (with the exception of the Hawaii location, which will not hold a final clearance sale).

"The decision to close stores is difficult, and often occurs when the market changes, new competing shopping centers are opened nearby to existing older ones, or when customers change shopping habits. In the store closing process, we are committed to treating affected associates with respect and openness," Lundgren said.

Affected associates in good standing may be considered for open positions at other Macy's locations. Regular full-time and part-time associates who are laid off due to a store closing will be provided severance benefits and outplacement assistance.

Costs associated with these 11 store closings will be approximately $65 million (of which approximately $12 million will be cash), most of which will be booked in the fourth quarter of 2008.

The company opened four new Macy's stores and one furniture gallery in 2008, as well as reopened a store in New Orleans that was damaged by Hurricane Katrina. In 2009, Macy's expects to open three new stores and one replacement store. Following the store closings announced on Thursday, Macy's will operate 848 stores -- 808 Macy's and 40 Bloomingdale's.

Macy's, with corporate offices in Cincinnati and New York City, is one of the nation's premier retailers, with fiscal 2007 sales of $26.3 billion. The company operates more than 840 department stores in 45 states, the District of Columbia, Guam and Puerto Rico under the names of Macy's and Bloomingdale's. The company also operates macys.com and bloomingdales.com. Prior to June 1, 2007, Macy's was known as Federated Department Stores.