Macy’s to Close 14 Underperforming Stores as Part of Turnaround

Macy’s has announced plans to close 14 additional stores as part of its ongoing efforts to restructure its physical retail presence. This decision is part of a broader strategy aimed at revitalizing the department store chain, which has faced significant challenges in recent years. The closures follow the shutdown of 66 locations in 2025 and 55 in the previous year, bringing the total to approximately 80% of its goal of closing 150 stores.

Most of these new closures are expected to occur in the first quarter of the year. The store reductions align with the “Bold New Chapter” transformation initiative introduced by chief executive Tony Spring in February 2024. This plan seeks to reverse declining sales and position the company for sustainable growth.

In an internal memo obtained by industry publication WWD, Spring emphasized the importance of reassessing the store portfolio and investment priorities. He stated, “As we execute our strategy, we are making deliberate choices about where and how we invest, including exiting stores that are not delivering and simplifying our operations.”

The impact of these closures extends beyond mere numbers; affected employees will receive support, including potential transfers to other locations, severance packages, and outplacement assistance. While store closures can be disruptive, other aspects of the transformation plan are beginning to show promise.

Retail analysts have noted that Macy’s investments in merchandising and store upgrades are resonating positively with customers. Neil Saunders, managing director of GlobalData, remarked, “Macy’s has made meaningful improvements to its offer and is starting to see stronger performance as a result.” This renewed confidence has prompted management to focus on stores they believe can thrive in the current retail environment.

Spring’s strategy represents his first significant move since taking on the CEO role after a year as president of Macy’s Inc. and nearly a decade leading Bloomingdale’s. The overhaul addresses both customer-facing operations and internal processes, with a goal of simplifying back-office systems and refining the brand portfolio.

In conjunction with the turnaround efforts at Macy’s, the company plans to expand its higher-growth brands. This includes the opening of 15 new Bloomingdale’s luxury stores and 30 new locations for Bluemercury, its beauty chain that competes with Ulta and Sephora.

The urgency of this strategic reset reflects ongoing challenges at the Macy’s brand, which experienced a 3.3% decline in comparable sales in fiscal 2022 and a further 6.6% drop in fiscal 2023. As part of this transformation, Macy’s has identified 350 core stores to retain long term, with 125 designated as pilot locations for testing new layouts, product assortments, and customer experience enhancements.

Macy’s leadership is optimistic that these comprehensive changes will stabilize the company, even as the immediate effects of store closures continue to reshape its presence on the high street. The ongoing evaluation of store performance and customer engagement will play a critical role in determining the future direction of this well-known retail giant.