Macy’s, a cornerstone of American retail for over a century, has announced plans to close 66 stores across the United States. This move is part of the company’s multi-year “Bold New Chapter” turnaround strategy, which aims to reshape the brand amidst changing consumer behaviors and economic pressures.
In a press release, Macy’s CEO Tony Spring acknowledged the difficulty of the decision, stating, “Closing a store is never easy, given the impact on our valued colleagues and the communities we serve. However, these closures are critical for ensuring we allocate our resources effectively to locations and initiatives that drive the most value.” Spring emphasized that the company’s remaining 350 “go-forward” locations are already seeing positive results, including enhanced product offerings and elevated customer service.
The “Bold New Chapter” strategy, introduced in February 2024, aims to return Macy’s to sustainable profitability by 2026. Central to this strategy is the closure of approximately 150 underperforming stores over three years, alongside significant investments in core locations and digital shopping platforms. Macy’s also plans to expand its luxury-focused brands, including Bloomingdale’s and Bluemercury, with 15 new Bloomingdale’s stores and 30 Bluemercury locations slated to open in the coming years. “Our vision is to create an elevated shopping experience that meets our customers where they are, whether in-store or online,” Spring added.
This wave of closures reflects broader trends in the retail industry, where traditional brick-and-mortar stores are grappling with declining foot traffic and stiff competition from e-commerce. According to CoreSight Research, the retail sector experienced over 7,100 store closures in 2024—a staggering 69% increase from the previous year. These pressures have driven many retailers to consolidate their physical presence, pivot to online strategies, or in some cases, file for bankruptcy.
Despite the challenges, Macy’s is determined to emerge stronger. Early data from the company’s revamped stores—referred to internally as the “First 50″—is promising. These locations have achieved three consecutive quarters of increased sales and record-high customer satisfaction scores. “Closing underproductive stores allows us to reinvest in areas where we see the most potential for growth,” said Spring.
However, the closures are not without consequences. Store shutdowns often result in job losses, decreased mall traffic, and economic challenges for affected communities. Local economies, such as those in western Washington where three stores are set to close, will inevitably feel the ripple effects.
Retail analysts believe Macy’s is making a calculated gamble. By consolidating its physical presence and doubling down on digital innovation and luxury segments, the company is positioning itself for a future where omnichannel retail reigns supreme. As Spring noted, “We’re committed to providing a seamless shopping experience that blends the best of both worlds.”
As Macy’s presses forward with its Bold New Chapter strategy, it stands at a crossroads. The decisions made today could redefine the brand’s legacy, transforming it into a leaner, more focused player in the ever-evolving retail landscape.
