Macy’s forecast annual sales largely below market expectations on Tuesday on weak demand for its apparel and shoes, and said it would close 150 stores through 2026 as part of its new turnaround plan.

The retailer did not provide details on the location of stores set to close or how many employees will be laid off. It also plans to monetise $600 million to $750 million of assets over the next three years.

The move comes as sluggish sales has landed the upscale retailer in the crosshairs of activist shareholders and attracted potential bidders.

Macy’s is facing a proxy battle from Arkhouse Management after the investment firm nominated nine director candidates last week.

The new plan is in addition to Macy’s decision in January to close five stores and cut 2,350 jobs, or 3.5 percent of its overall workforce.

The company also said it would open 15 Bloomingdale’s locations and at least 30 new Bluemercury stores over the next three years to accelerate growth for its better-performing luxury brands.

The retailer posted holiday quarter comparable sales decline of 4.2 percent on an owned-plus-licensed basis, which was better than what analysts had feared, as steep discounts helped draw shoppers.

However, net credit card revenue fell 26 percent to $195 million, in a sign that economic pressure, particularly among its low- and middle-income customers, led to higher bad debts.

The company took a $1 billion charge in the fourth quarter related to the restructuring, resulting in a loss per share of 26 cents. Excluding items, it earned $2.45 per share, above LSEG estimates of $1.96.

It expects fiscal 2024 net sales between $22.2 billion to $22.9 billion, compared to analysts’ average estimate of $22.95 billion.

Macy’s forecast adjusted earnings per share between $2.45 and $2.85, the midpoint of which is below expectations of $2.76.

By Katherine Masters and Savyata Mishra; Editing by Arun Koyyur

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