The Macy's in Holladay — the final building left standing from what was the Cottonwood Mall, which opened in 1962 — will be closing.

The retailer said Wednesday 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.

Holladay City Manager Gina Chamness said the Macy's decision was sad to see, but that it might advance prospects for developing the overall mall site, most of which has been vacant since 2008.

"While we regret the loss of jobs and retail convenience that may come with the closure of this store," Chamness said, "we also recognize the closure presents a unique opportunity for redevelopment of this critical asset in our community."

The city, she said, will spend the next few months refining ideas for the site with three Ivory companies — Ivory Development, Ivory Homes and ICO Commercial — that have entered into an agreement to buy the 57-acre site.

Chamness pledged the city will talk "with the community about how those opportunities will unfold."

Closure of the Holladay store leaves Macy's with four Utah locations: in Salt Lake City, Sandy, Layton and Orem. Fashion Place Mall in Murray announced in 2015 that it was adding a Macy's store in an expansion that is set to be complete in the spring.

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

As if to underscore that point, Kohl's Corp. also reported disappointing holiday shopping numbers Wednesday.

Macy's said the 68 store closures, which span the nation, are part of the 100 closings it announced in August. Of the 68, three were closed by the middle of 2016, 63 will close in the spring and two will be closed by the middle of 2017.

Macy's is selling or has sold three other locations, but is leasing the properties back and will keep operating those stores.

Some employees may be offered positions at nearby stores, but Macy's estimates that 3,900 employees will be affected by the closures.

Macy's also said it plans to restructure parts of its business and sell some properties. This will lead to the reduction of 6,200 jobs. The moves are estimated to save $550 million annually.

Overall, Macy's said, the job reductions represent about 7 percent of its workforce.

The company, which owns the Macy's and Bloomingdale's brands, has been struggling with declining traffic in its stores, where the bulk of its business is still conducted. It said it is closing stores that are "unproductive or are no longer robust shopping destinations" as well as selling those with highly valued real estate.

It plans to invest some of its savings in growing its digital business.

Macy's said it now expects to earn between $2.95 and $3.10 per share on an adjusted basis for its 2016 fiscal year, versus its prior forecast of $3.15 to $3.40 per share. The company is scheduled to report full results in February.

Shares in Macy's fell more than 10 percent to $32.20 in after-hours trading.

Kohl's shares fell almost 15 percent to $44.15 after it cut its earnings guidance for fiscal 2016. It now expects $3.60 to $3.65 a share on an adjusted basis, down from its previous forecast of $3.80 to $4 per share.

— Salt Lake Tribune reporter Mike Gorrell contributed to this article

Above, Lauri Heinrich of Park City finds a good buy on the remaining merchandise of Meier & Frank's shoe department. Federated Stores is converting Utah's eight Meier & Frank stores into Macy's stores like the store pictured at 4835 Highland Drive in the Cottonwood Mall. The changeover is set for Sept. 9, 2006. Photo by Leah Hogsten 8/29/06 SLC
Above, a sign worker puts the finishing touches on the "Macy's" sign beneath the Meier & Frank plastic banner. Federated Stores is converting Utah's eight Meier & Frank stores into Macy's stores like the store pictured at 4835 Highland Drive in the Cottonwood Mall. The changeover is set for Sept. 9, 2006. Photo by Leah Hogsten 8/29/06 SLC
Brooke Spendlove of Cottonwood Heights takes advantage of deals at Macy's on Main Street Salt Lake City, Utah holds one last liquidation sale Monday afternoon. The buildings at the ZCMI Center will be replaced by a new development that is intended to revitalize the downtown area. photo by Danny Chan La/The Salt Lake Tribune 2-5-2007
(Tribune file photo) The first mall built in Utah in 1962, the Cottonwood Mall thrived for 40 years before changing markets led to its demise. Torn down in 2008, the mall property has remained vacant since then. But Holladay City officials are now considering a plan to revitalize it with a residentially oriented development.
COTTONWOOD MALL The large acreage that has been leveled and awaiting new construction at the Cottonwood Malll site, Monday 9/29/08. At the far left one can see the Macy's store which remains open. Looking into whether mall project is going to be put on hold for a year due to economy. Scott Sommerdorf / The Salt Lake Tribune
Crews work on the ground which was once the parking lot of the Cottonwood Mall. On Tuesday (Jan. 15) the Granite School Board will vote on whether to support funneling about $52 million of its future projected tax dollars to the redevelopment of this 57-acre property into a mixed use neighborhood. General Growth Properties plans to build a $550 million project with 534 residences, 700,000 square feet of retail and 100,000 square feet of office space. But the Chicago-based developer says they can't do it without $75 million up front to pour into costly infrastructure upgrades.Rick Egan/The Salt Lake Tribune 1/10/2008
COTTONWOOD MALL Shoppers exit the Macy's store at Cottonwood Mall that is open during construction, only to be faces with navigating the torn up parking lot. Looking into whether mall project is going to be put on hold for a year due to economy, Monday 9/29/08. Scott Sommerdorf / The Salt Lake Tribune