Macy’s (M) seeks to shutter 150 of its “underproductive” retail locations over the next several years into 2026, outlined in its fourth-quarter earnings report. The retail chain rebuffed a $5.8 billion buyout offer from activist investors in January. Morningstar Equity Analyst David Swartz explains the message this sends for new CEO Tony Spring — who began his role as chief executive in early February — while also examining Macy’s business model.

“I would have to say this is a disappointing way to start out a new job as CEO at Macy’s, having to close 150 stores and lay off a lot of people,” Swartz tells Yahoo Finance. “That doesn’t exactly generate a lot of excitement among investors or employees, I would imagine. And, so, at this point, it’s hard to have a lot of confidence at all on Macy’s turnaround plan.”

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Editor’s note: This article was written by Luke Carberry Mogan.