Macy's wants to be America's department store, but America isn't entirely buying it — and that could mean the entire company could soon be sold.

Buyout king Kohlberg Kravis Roberts & Co. is close to reaching a deal to buy Macy's Inc. for $24 billion, Women's Wear Daily reported yesterday. Both sides declined to comment on the report, but investors greeted the news by bidding up Macy's shares by nearly 8 percent, to $43.09.

Retail industry analysts said the company's tepid performance of late has made it vulnerable to an acquisition. Revenue fell 0.2 percent, to $5.9 billion, for its fiscal first quarter ended May 5. Same-store sales have slipped for the last three months.

The giant chain, with more than 820 stores nationwide, was forged by Federated Department Stores' 2005 acquisition of May Department Stores. The combined company then moved to convert regional chains — including Robinsons-May in Southern California and Marshall Fields in Chicago — to the Macy's name, with mixed results.

"They wanted to build a national brand, and it wasn't working," said Eli Portnoy, founder of Portnoy Group Inc., a brand marketing consulting firm.

"There is no question Macy's didn't live up to the expectations," said Kurt Barnard, a retail consultant based in Nutley, N.J. "The company generated a great amount of animosity with consumers."

Steve Cain, 50, was shopping at the Macy's in downtown Los Angeles yesterday, but said he was doing so only because he wanted to redeem a 10-year-old gift certificate.

"Macy's has taken a major dive since they combined with Robinsons-May," said Cain, who bought a bottle of cologne. "It's all become the same, there's no difference in the merchandise. ... Because they've become the only game in town, they get to call all the shots retail-wise. It's just so bland. I mean, it's a little upscale Wal-Mart for all I care."

But David Eads, 45, said he shops regularly at Macy's and praised its variety.

"They've got good quality merchandise and good prices. I can usually find what I'm looking for. ... You can get a $300 suit or you can get a $1,000 suit," he said.

Analysts said at least part of what's ailing Macy's is beyond its control. Rising gasoline prices have pinched the pocketbooks of many customers, and the slumping housing market is crimping sales of home furnishings.

Private equity firms such as KKR often look to improve a company's bottom line by cutting costs and selling off pieces of the business — with the eventual goal of selling the company for a profit or taking it public again.