MINNEAPOLIS (AP) — A shopping landmark in downtown Minneapolis is closing.

Macy's Inc. said Wednesday it is selling the store, ending more than a century of department store retailing in the heart of Minnesota's largest city. The closing, planned for March, affects 280 employees.

The Star Tribune reports the property is being sold to a New York investment firm for more than $40 million. The property consists of three buildings totaling nearly 1 million square feet along Nicollet Mall.

Minneapolis City Council President Barb Johnson says Macy's representatives cited changing shopping habits and slumping sales for the store's closure.

For decades the property was the headquarters and flagship store of the Dayton Co., forerunner of Target Corp., founded by the father and uncles of Minnesota Gov. Mark Dayton.

 

Macy's says it is eliminating more than 10,000 jobs and plans to move forward with 68 store closures after a disappointing holiday shopping season. The department store chain also lowered its full-year earnings forecast.

The retailer said Wednesday that sales at established stores fell 2.1 percent in November and December compared to the same period last year. Macy's Inc. pointed to changing consumer behavior and said it reflects challenges facing much of the retail industry.

The company said it plans to close by midyear the 68 stores that are part of 100 closings announced in August. It also plans to restructure parts of its business and sell some properties. The moves are estimated to save $550 million annually.