American retailer Macy's is planning to close about 45 of its department stores in the U.S. by the middle of this year. The company reportedly sent a memo to its employees notifying them of its plans.

The closures are part of the company's previously announced plans to shut down at least 125 of its stores by 2023. Macy's has reportedly accelerated its plans this year given the current market situation.

Macy's didn't list the stores it plans to close. However, some stores have reportedly started liquidation sales. Macy's currently has about 544 self-branded department stores and 34 Bloomingdale's locations.

"As previously announced, Macy's is committed to rightsizing our store fleet by concentrating our existing retail locations in desirable and well-trafficked A and B malls," a Macy's representative said in an interview.

Green Street Advisors explains that malls are classified based on the sales per square foot they generate. Class A++ malls bring in as much as $1,000 per square foot while Class C+ malls bring in about $320.

The representative said that the planned closures are aligned with the guidance it provided last year. With the shutdowns, the company is hoping to reach the "right mix" of stores to ensure its continued growth.

Macy's chief executive officer Jeff Gennette has already said the company would concentrate on its mall-based stores given the economic slowing. He added that the company would look into strengthening its off-mall presence in the future.

Last year, Macy's said its quarterly same-store sales dropped by more than 20% owing to the coronavirus. While it did experience a 27% growth in digital sales it wasn't enough to offset its losses at physical stores.

Last year, more than three dozen retail companies declared bankruptcy. Macy's has so far been able to stay afloat despite the retail environment. By reducing its footprint, Macy's is hoping to prevent bankruptcy by shoring up its expenses.