A huge department store has announced plans to shut 14 more underperforming stores this year. Macy’s is continuing a sweeping overhaul of its bricks-and-mortar estate, as the US department store giant pushes ahead with its turnaround strategy.
The latest closures follow the shutdown of 66 locations in 2025 and 55 the year before, meaning the retailer will be around 80% of the way towards its target of closing 150 stores once the next round is complete. Most of the new closures are expected to take place in the first quarter.
The store reductions form a central part of the “Bold New Chapter” transformation plan unveiled by chief executive Tony Spring in February 2024, aimed at reversing years of falling sales and repositioning the business for long-term growth.
In an internal memo seen by industry publication WWD, Spring said the company was continuing to reassess its store portfolio and investment priorities.
“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,” he said.
Spring added that affected staff would receive support, including opportunities to transfer to other locations where possible, as well as severance packages and outplacement assistance.
While store closures are widely viewed as the most disruptive aspect of the strategy, other elements of the plan are beginning to gain traction. Retail analysts say investments in merchandising and store upgrades are resonating with shoppers.
“Macy’s has made meaningful improvements to its offer and is starting to see stronger performance as a result,” said Neil Saunders, managing director of GlobalData’s retail division.
“That’s giving management confidence to double down on the stores it believes can succeed and continue evolving them for today’s customer.”
Spring’s plan marked his first major strategic move after stepping into the CEO role, following a year as president of Macy’s Inc. and almost a decade leading Bloomingdale’s.
The overhaul targets both the customer-facing business and internal operations, with a focus on simplifying back-office systems and sharpening the group’s brand portfolio.
Alongside the Macy’s turnaround, the company plans to expand its higher-growth banners, including opening 15 new Bloomingdale’s luxury stores and 30 Bluemercury locations, its beauty chain that competes with Ulta and Sephora.
The urgency of the reset was driven by sustained declines at the Macy’s brand, with comparable sales falling 3.3% in fiscal 2022 and 6.6% in fiscal 2023.
As part of the revamp, the retailer has identified 350 core stores it intends to keep long term, with 125 of those acting as pilot locations for testing new layouts, assortments and customer experience upgrades.
Macy’s leadership believes the changes will ultimately stabilise the business, even as the near-term impact of store closures continues to reshape its high street presence.