The retail landscape is in constant flux, a dynamic arena where iconic brands must continuously adapt or risk becoming relics of a bygone era. For over 160 years, Macy’s has stood as a towering symbol of American retail, from its legendary flagship store in Herald Square to its widespread presence in malls across the nation. Known for its iconic Thanksgiving Day Parade, captivating seasonal window displays, and a vast selection of fashion and home goods, Macy’s has long been a staple for families.
However, even giants must confront the changing tides. In recent years, Macy’s has faced a torrent of challenges, including declining mall traffic, the inexorable rise of online shopping, and a profound shift in consumer preferences. These pressures have compelled the venerable retailer to fundamentally rethink its traditional department store model. What we are witnessing now is not a slow decline, but a deliberate, strategic transformation that Macy’s leadership has aptly named its “Bold New Chapter.”
This ambitious three-year turnaround plan involves a significant restructuring, most notably the closure of approximately 150 underperforming stores by 2026. Simultaneously, the company is redirecting substantial investments into digital channels, pioneering smaller-format stores, and bolstering its luxury divisions like Bloomingdale’s and Bluemercury. It’s a comprehensive effort to modernize operations, divest from less profitable locations, and align more closely with where and how people shop in today’s fast-evolving market.
1. **The ‘Bold New Chapter’: Macy’s Strategic Imperative for Survival and Growth**
Macy’s is not merely reacting to market pressures; it is proactively embarking on a monumental restructuring plan dubbed its “Bold New Chapter.” This isn’t a simple knee-jerk response to a few bad quarters, but a deeply considered three-year strategy designed to fundamentally reshape the company. The core objective is clear: to return Macy’s to a path of sustainable, profitable sales growth in an incredibly challenging retail environment.
This comprehensive turnaround plan entails a multifaceted approach. It involves a critical evaluation of its extensive physical footprint, leading to the painful but necessary decision to shed underperforming assets. Concurrently, Macy’s is channeling resources into modernizing its remaining operations and developing innovative retail formats that resonate with contemporary consumer behavior.
CEO Tony Spring has articulated this strategy, emphasizing that the closures are a response to changing consumer behavior, rising retail costs, and cold, hard store performance data. He stated in January, “Closing any store is never easy, but as part of our Bold New Chapter strategy, we are closing underproductive Macy’s stores to allow us to focus our resources and prioritize investments in our go–forward stores, where customers are already responding positively to better product offerings and elevated service.” This statement underscores the strategic rather than reactive nature of the current transformation.
The “Bold New Chapter” signifies Macy’s commitment to staying relevant in an era defined by decreasing foot traffic, intense competition, and inflationary pressures that are reshaping every shopping decision. It’s a calculated risk, aimed at bringing the brand closer to where shoppers are actually spending their time and money, both physically and digitally.
Ultimately, this isn’t just about cutting losses; it’s about reshaping the company for the next generation of shoppers. By refocusing investments into growth areas, Macy’s aims to create a more agile, customer-centric, and ultimately more profitable enterprise, ready to face the challenges of the coming decade.
2. **The Scale of Change: 150 Underperforming Stores Slated for Closure by 2026**
The headline number is striking and indicative of the magnitude of Macy’s transformation: a planned closure of approximately 150 underperforming stores by the end of fiscal year 2026, which concludes on January 30, 2027. This isn’t a sudden, one-time event, but a phased process unfolding over several years, designed to manage the complex logistics of liquidation sales, employee transitions, and community impacts effectively.
By January 2025, Macy’s had already named 66 of these 150 locations. This initial wave of closures indicates the aggressive pace at which the company is moving to streamline its operations. These early closures spanned 22 states, impacting both suburban malls and, in some cases, historically significant urban locations.
The company’s press release from January 2025 reiterated this commitment, stating that the plan “is designed to return the company to sustainable, profitable sales growth.” It also confirmed the intention to close about 150 “underproductive” Macy’s store locations while simultaneously investing in its remaining 350 current Macy’s locations through the specified fiscal year.
Interestingly, Macy’s was already ahead of schedule even before officially rolling out the Bold New Chapter plan, having closed 64 stores by the end of 2024. This demonstrates the deep-seated understanding within the company that significant action was needed well in advance of the formal announcement. The ongoing closures are a testament to the company’s resolve to create a smaller but ultimately stronger retail footprint.
While the focus on closures can feel daunting, it’s crucial to understand this as part of a larger strategy. The company is actively consolidating around what it terms a “go-forward fleet” of approximately 350 stronger-performing Macy’s stores nationwide. These are the locations that exhibit high sales volume, strong community demand, or strategic importance within Macy’s renewed vision.
3. **The ‘Why’ Behind the Closures: Declining Mall Traffic and the Rise of Online Shopping**
To truly grasp the necessity of Macy’s extensive store closures, one must look at the fundamental shifts in how Americans shop, particularly the twin forces of declining mall traffic and the relentless ascent of online retail. For decades, Macy’s thrived as the quintessential mall anchor, a magnet that drew shoppers and sustained a constellation of smaller surrounding retailers. This model, however, has been increasingly eroded.
Mall traffic has been in a steady and precipitous decline for years, a trend exacerbated by changing consumer lifestyles and the lingering effects of the post-COVID era. Shoppers are simply not frequenting traditional enclosed malls with the same regularity they once did. Many of the stores Macy’s is shuttering are situated in these struggling malls, locations where declining foot traffic has made maintaining profitability an increasingly insurmountable challenge.
Parallel to this, e-commerce has fundamentally reshaped consumer behavior. The convenience of browsing and purchasing from home, at any hour, has become a dominant preference for a vast segment of the population. While Macy’s has made substantial investments in its website and mobile app, the cost of operating hundreds of massive physical stores became increasingly unsustainable when compared to the revenue they were generating in this new digital-first shopping landscape.
CEO Tony Spring explicitly stated that these closures are a direct response to these shifts, alongside rising retail costs and detailed store performance data. Larger, legacy locations, which were once the bedrock of Macy’s success, are simply no longer viable in the current retail climate, especially with the pervasive influence of online shopping.
4. **Beyond the ‘Retail Apocalypse’: Macy’s Strategic Reset in a Transforming Industry**
The challenges Macy’s faces are not isolated; they are part of a broader, industry-wide phenomenon often sensationalized as the “retail apocalypse.” Over the past decade, countless household names—Sears, JCPenney, Bed Bath & Beyond, among others—have either downsized dramatically or succumbed to bankruptcy. However, many industry analysts argue that this isn’t an “apocalypse” where retail is dying, but rather a profound “retail transformation.”
Macy’s strategic reset, therefore, should be viewed within this context of industry-wide upheaval. It’s an acknowledgment that retailers must rapidly adapt to evolving consumer habits or face inevitable decline. The “Bold New Chapter” is Macy’s deliberate effort to avoid the fate of its less agile competitors by embracing transformation rather than resisting it.
This strategic reset is about redirecting investment away from underperforming assets and towards areas with genuine growth potential. This includes a keen focus on developing smaller, more modern Macy’s stores that are located outside of traditional malls, strategically placing them closer to where people live and shop today.
Furthermore, Macy’s is doubling down on its luxury and beauty segments. This involves significant expansion plans for Bloomingdale’s, its upscale department store chain, and Bluemercury, its popular beauty concept stores. These divisions represent higher-margin businesses and cater to consumer segments that continue to show strong demand, even amidst broader economic shifts.
In essence, Macy’s closures are not just about cutting losses; they are about fundamentally reshaping the company for the next generation of shoppers. By strategically shedding underproductive stores and investing heavily in a diversified, future-forward portfolio of smaller formats, luxury brands, and a robust digital presence, Macy’s aims to carve out a sustainable and profitable niche in the transformed retail landscape.
5. **The First Wave of Impact: 66 Stores Identified and Closing in Early 2025**
While Macy’s has announced a comprehensive plan to close 150 stores by 2026, the immediate impact began with a significant “first wave” of 66 locations identified for closure in January 2025. This initial list set the tone for the aggressive pace of the company’s restructuring, with clearance sales commencing almost immediately in these affected stores.
These initial closures were not confined to a single region but spanned across 22 states, affecting diverse communities. Key locations in populous states felt the immediate brunt of this strategy. For instance, California saw stores on the closure list in Los Angeles, Chula Vista, San Diego, Westminster, Citrus Heights, and Newark. New York, a state with deep historical ties to Macy’s, also experienced significant impact, with locations in Brooklyn, the Bronx, Staten Island, Massapequa, and Elmhurst among those slated for closure.
Notably, the downtown Brooklyn store on Fulton Street, which had housed the historic Abraham & Straus department store before Macy’s took over in 1995, closed after nearly three decades. Another iconic New York location at Sunrise Mall on Long Island was also set to close, highlighting the widespread nature of these strategic decisions.
Texas and Florida were also heavily impacted, with stores in Dallas, Houston, Plano, Fort Worth, and Flower Mound in Texas, and Sarasota, Fort Lauderdale, Pembroke Pines, Tampa, and Boynton Beach in Florida making the initial list. Beyond these, the context also points to closures in Michigan, Pennsylvania, Oregon, Washington, Illinois, Georgia, Louisiana, Missouri, Minnesota, Maryland, and Virginia, among other states.
These immediate closures signal Macy’s unwavering commitment to its “Bold New Chapter.” By acting decisively on these initial 66 locations, the company is demonstrating its resolve to quickly shed underperforming assets and redeploy resources. The clearance sales, which began in January and were scheduled for approximately 8-12 weeks, offered shoppers a final opportunity to engage with these stores before their permanent closure.
6. **Investing in the Future: How 350 “Go-Forward” Stores Are Getting a Major Makeover**
Amidst the significant news of store closures, it’s crucial to recognize that Macy’s isn’t simply shrinking its footprint; it’s simultaneously investing heavily in the future of its brand. While 150 stores are closing, Macy’s is dedicating substantial resources to 350 locations that are staying open, forming what the company refers to as its “go-forward fleet.” This dual strategy highlights a commitment to consolidation and revitalization rather than a complete retreat from brick-and-mortar retail.
The investment in these 350 stores is comprehensive, aiming to modernize layouts, enhance lighting, and significantly upgrade the overall in-store experience. By early 2025, 125 of these existing stores had already undergone extensive remodels. These upgrades are not superficial; they are designed to create a more appealing, efficient, and enjoyable shopping environment for customers.
The results of these investments are already showing promise. According to CEO Tony Spring, the remodeled stores are “outperforming the rest of the fleet.” This is a rare and encouraging sign of retail success in a market often characterized by widespread shutdowns and declining performance. It validates Macy’s strategy of focusing resources on its strongest locations and transforming them into more compelling destinations.
These “go-forward” stores are typically characterized by higher sales volumes, stronger community demand, or strategic importance within key markets. By concentrating capital and operational efforts on these proven performers, Macy’s aims to create a network of flagship-caliber locations that can drive sustainable growth and profitability in the long term. This targeted investment strategy ensures that the Macy’s brand remains a vibrant and competitive force in the evolving retail landscape, even with a smaller overall physical presence.
The ongoing remodels and strategic improvements underscore Macy’s vision: a smaller, more curated, and more modern physical presence that complements its robust digital channels. It’s about quality over quantity, ensuring that every Macy’s store that remains open offers an elevated experience that resonates with today’s discerning shopper. This dual approach of closures and targeted investment is central to the “Bold New Chapter” and its promise of future relevance.
7. **Macy’s Growth into Smaller-Format Stores and Luxury Brands**
Macy’s transformation isn’t solely about shrinking its footprint; it’s also a strategic expansion into formats designed for contemporary shopping habits. As part of its “Bold New Chapter,” the company is actively rolling out smaller-format Macy’s stores, moving away from the sprawling, traditional department store model often found in struggling malls. These new locations are significantly more compact, typically about one-fifth the size of their predecessors, allowing for greater agility.
These smaller stores are strategically placed in off-mall locations, such as lifestyle centers and strip malls, bringing them closer to where customers live and shop every day. Their focus is on top-selling categories like apparel, beauty, shoes, and home goods, offering a curated selection rather than an overwhelming inventory. This streamlined approach makes shopping more convenient and enjoyable, directly addressing the modern consumer’s preference for efficiency and accessibility.
Beyond its core brand, Macy’s parent company is also doubling down on its luxury and beauty segments, recognizing their strong growth potential. Plans are underway to open at least 15 new Bloomingdale’s stores, strategically targeting affluent shopping areas to cater to a discerning clientele. Simultaneously, approximately 30 new Bluemercury beauty concept stores are slated to open, responding to the high and sustained demand for premium skincare, cosmetics, and personalized beauty experiences.
This strategic pivot is exemplified by projects like the new Macy’s small-format store set to open at Midway Crossings Mall in Miami, Florida. Such initiatives showcase how Macy’s is reinventing its physical footprint, repositioning itself in key urban and suburban areas while divesting from less profitable, mall-based locations. This diversified portfolio aims to tap into different consumer segments and market trends, ensuring broader relevance and sustained profitability in an evolving market.
8. **The Profound Impact on Employees: Job Losses, Transfers, and Severance**
While Macy’s strategic overhaul aims for long-term sustainability, its immediate and most profoundly human impact falls upon its dedicated workforce. Every store closure brings a wave of uncertainty for thousands of employees nationwide, ranging from sales associates and managers to essential support staff. The sheer scale of the 150 planned closures means that the nationwide impact on employment could tragically reach into the tens of thousands by the end of 2026.
Macy’s acknowledges the significant disruption these changes cause and has outlined measures to support its affected staff. In metro areas where the company maintains multiple locations, some employees may be offered opportunities to transfer to nearby open stores. This option provides a lifeline for continuity, allowing experienced team members to remain within the Macy’s family and continue their careers.
However, the reality in smaller towns or single-store markets is often different, with limited or no opportunities for relocation. For these employees, Macy’s has committed to offering severance packages and outplacement support, aiming to ease their transition during this challenging period. The specific details of these packages typically vary based on factors such as position, length of service, and company policy, ensuring a tailored approach.
Crucially, Macy’s has endeavored to communicate these difficult decisions to its staff in advance, typically providing several weeks’ notice before a store’s final closure. The clearance sales, which often run for 8-12 weeks, also serve to keep staff employed temporarily, managing the store’s winding down process. These cuts extend beyond individual stores, with corporate office layoffs also occurring as Macy’s streamlines its overall operations in pursuit of efficiency and cost reduction.
Ultimately, the restructuring underscores a broader shift in the retail employment landscape. While painful for those directly affected, these strategic decisions by Macy’s are part of a larger effort to ensure the company’s viability, inadvertently reshaping the career paths of thousands of retail professionals across the country who must now adapt to new opportunities.
9. **Repurposing Large Vacant Store Locations: A New Future for Retail Spaces**
When a retail giant like Macy’s shutters one of its large-format stores, it leaves behind a significant void, often a massive space spanning 100,000 to 200,000 square feet. These imposing structures, once bustling hubs of commerce, become critical parcels for local economies and urban planners. What happens to these vast, now-vacant spaces is a multifaceted question, with outcomes largely dependent on the specific mall, the surrounding local economy, and the visionary plans of developers.
Across the United States, a discernible trend is emerging: many former Macy’s locations are being imaginatively repurposed for entirely new uses. This transformation reflects a shift away from traditional retail dominance. Some prime real estate areas are being converted into much-needed housing projects, transforming commercial shells into vibrant residential communities, addressing local housing demands.
Other sites are being reimagined as entertainment venues, housing movie theaters, state-of-the-art fitness centers, or even indoor sports facilities, providing new leisure options for residents. This diversification of use aims to create destinations that draw people for reasons beyond just shopping, offering a richer community experience and bolstering local engagement.
A particularly promising approach involves mixed-use developments, which integrate a combination of retail, dining, office space, and housing. This comprehensive strategy aims to breathe new life into struggling malls and commercial districts, creating dynamic, self-sustaining environments that serve a broader community purpose. The conversion of a Macy’s site in Corte Madera, California, into a potential housing redevelopment is a poignant example of this trend, illustrating how former retail footprints are adapting to address contemporary societal needs.
The departure of an anchor tenant like Macy’s inevitably impacts the malls they once supported. Foot traffic in these malls can decline significantly, creating challenges for smaller surrounding retailers. While some malls may struggle with increased vacancies, others are seizing the opportunity to reinvent themselves, bringing in new types of tenants such as grocery stores, medical centers, or diverse entertainment hubs, transforming them from pure retail destinations into community-centric lifestyle centers.
10. **Essential Information for Shoppers: Loyalty Programs, Gift Cards, and Returns**
For regular Macy’s shoppers, the news of widespread store closures can understandably create anxiety regarding their loyalty benefits, gift cards, and return policies. However, Macy’s has proactively assured its customer base that core shopping benefits and product access will continue seamlessly through alternative channels, emphasizing a transition rather than a termination of services. Transparency and clear guidance are paramount during this period of significant change.
First, the popular Star Rewards program will remain fully valid nationwide and across all online platforms. Customers can rest assured that their accumulated points, valuable perks, and earned membership tiers will not be lost if their local store is slated for closure. Shoppers can continue to redeem or earn rewards at any other open Macy’s location or, with increasing ease, through the Macy’s app and website, ensuring their loyalty is still valued and recognized.
Similarly, Macy’s gift cards will retain their full validity, offering shoppers complete flexibility. Even if the physical store where a gift card was purchased or intended to be used closes, the card can still be redeemed without issue online via macys.com or at any operational Macy’s location. The company has explicitly stated there will be no expiration concerns related to the current wave of closures, providing peace of mind to gift card holders.
Regarding returns and exchanges, items purchased at a closing store can typically be returned within Macy’s standard return window. After a store’s permanent closure, customers can still process returns either through Macy’s online portal or by visiting the nearest open Macy’s store. However, it’s crucial for shoppers to exercise caution with items bought during “Store Closing” clearance sales, as these often come with “final sale” policies, meaning they cannot be returned or exchanged. Checking receipts carefully is always advisable.
Macy’s substantial investment in its digital shopping experience is also a key factor for affected shoppers. The website and mobile app are becoming central to the customer journey, offering an expanded product selection, free shipping options for certain loyalty tiers, and convenient “buy online, pick up in-store” (BOPIS) services at remaining locations. This robust digital presence, alongside the emergence of smaller-format stores, ensures that Macy’s remains accessible and valuable to its customers, even as its physical footprint evolves.
11. **Timeline and Strategies for Clearance Sales: Maximizing Your Last Deals**
For savvy shoppers, the impending closure of a Macy’s store often signals an opportunity for significant savings, but understanding the timeline and strategies for clearance sales is key to maximizing these last deals. Macy’s closures are not occurring simultaneously across all 150 locations; instead, they are unfolding in carefully managed phases, allowing for orderly liquidation processes and employee transitions.
The first major wave of 66 closures was announced in early 2025, specifically between January and March. For these initial locations, clearance sales commenced almost immediately upon the announcement, with many of these stores scheduled to close permanently by late spring 2025. Following this, a second wave of over 80 stores began their liquidation sales around mid-2025, from April through August, with most expected to wrap up by summer 2025.
Macy’s has indicated that additional closures will continue through the end of 2026, as part of its long-term downsizing plan. The exact closing dates for these future waves will depend on various factors, including lease agreements and sales performance, with stores remaining open into early 2026 in some instances. This phased approach means that different stores will be in different stages of liquidation at any given time, offering ongoing opportunities.
When a store is marked for closure, the liquidation sales process generally follows a predictable pattern. Discounts typically begin in the range of 20-40% off across various departments and steadily increase week by week as the closing date approaches. For those hunting for the deepest possible discounts, patience can pay off, with savings potentially reaching 70-90% off in the final days. However, this comes at the cost of a significantly more limited selection, as popular items are snapped up early in the sale cycle.
Beyond traditional merchandise, an interesting aspect of these sales is the eventual offering of store fixtures and equipment. Once clothing, accessories, and furniture have been cleared out, Macy’s frequently sells racks, mannequins, shelving units, and even cash registers to the public, presenting a unique opportunity for businesses or collectors. Shoppers looking to capitalize on these opportunities should pay close attention to local announcements and be prepared to visit stores early for the best selection, or later for the steepest price cuts, keeping in mind the typical 8-12 week window for sales.
12. **Macy’s Reimagined Vision: Sustainable Growth Through Strategic Shifts**
Macy’s store closures, while marking the end of an era for many communities, do not signal the demise of the brand. Instead, they represent a pivotal point in Macy’s “Bold New Chapter,” a comprehensive strategy designed to reinvent the company for sustained profitability and relevance in the decade ahead. This reimagined vision is built upon several strategic shifts, moving Macy’s away from its traditional, sprawling department store model towards a more agile, customer-centric future.
A cornerstone of this transformation is a pronounced shift toward luxury and beauty segments. Macy’s is making significant investments in its high-end division, Bloomingdale’s, with plans to open 15 new stores. Simultaneously, its beauty chain, Bluemercury, is set to expand with 30 new locations. This focus is strategic, capitalizing on markets where consumer spending remains strong, even amidst broader economic fluctuations, as shoppers continue to prioritize premium experiences, beauty, and skincare offerings.
Furthermore, Macy’s is strategically developing smaller, smarter store formats. These new “off-mall” locations, about one-fifth the size of traditional stores, are designed to be more accessible and cost-efficient to operate. Situated in lifestyle centers and strip malls, they cater to modern shopping habits by offering a curated selection of best-selling items, such as those found in new concepts like Macy’s Market by Macy’s. This move aims to place the brand closer to where customers conduct their daily shopping, enhancing convenience.
Digital growth and an enhanced omnichannel experience are also central to Macy’s future. The company is heavily investing in improvements to its Macy’s app, focusing on smoother shopping journeys and personalized recommendations powered by AI-driven retail technology. The goal is to seamlessly integrate online and in-store experiences, allowing customers to buy online and pick up in-store (BOPIS) with greater ease, establishing Macy’s as a tech-savvy retailer that blends digital convenience with quality in-person service.
Ultimately, Macy’s is reimagining the customer experience, focusing on quality over sheer quantity. The remaining “go-forward” stores will offer more personalized services, from styling consultations to improved loyalty programs, creating a more distinctive and engaging shopping environment. By shedding approximately 150 underperforming stores to consolidate around a core of 350+ profitable locations and bolstering its digital presence, Macy’s is crafting a smaller yet significantly stronger retail footprint, poised for long-term sustainability and a renewed sense of purpose in the evolving U.S. retail landscape.
This “Bold New Chapter” is an ambitious act of retail reinvention, a testament to the enduring power of adaptation in the face of profound change. Macy’s is navigating a complex transformation, balancing the difficult decisions of consolidation with strategic investments in future growth. How successfully it executes this delicate balance of tradition and innovation will determine its legacy and its continued place as a relevant force in American retail for generations to come. The retail landscape is indeed in constant flux, but Macy’s is determined not just to survive, but to thrive within its ever-shifting currents.
