It has been confirmed that in 2025, Macy’s will close over 60 stores nationwide, marking a significant shift in its retail strategy. This decision is part of the company’s “Bold New Chapter” plan, which aims to restore sustainable, profitable sales growth.
The closures will impact stores across 21 states, including major markets in California, New York, Texas, and Florida. Macy’s leadership has acknowledged that closing these stores is difficult but very necessary in order to focus on more successful locations. The company hopes these changes will help modernize operations, improve customer experiences, and position Macy’s for long-term success in a challenging retail environment.
The “Bold New Chapter” Strategy
The closures are central to Macy’s “Bold New Chapter” strategy and were first announced in February 2024. They are planning to close about 150 underperforming stores over the next three years while investing in 350 “go-forward” Macy’s locations. This strategy is designed to address changing consumer habits and tough competition from online retailers.
Macy’s will use the savings from these closures to upgrade the remaining stores, focusing on better product offerings, elevated service, and improved shopping experiences. They believe that this transformation is important to return growth and deliver greater value to customers and shareholders.
Where Are Stores Closing?
The closures will affect communities in 21 states. Notable concentrations include nine stores each in California and New York, six in Texas, and seven in Florida. Other affected states include Arizona, Colorado, Virginia, and many others.
Some of the higher-profile locations, like the Downtown Brooklyn store, have already closed, while many others are scheduled to shut down in the coming months. Macy’s has released a complete list of closing stores, which has allowed customers to check if their local store is affected. The company assures that flagship locations, like Herald Square in New York City, will remain open.
Why Are These Stores Closing?
Macy’s has reported declining foot traffic, changing shopping habits, and the need to focus on more profitable locations as reasons for the closures. Recently, department stores across the country have struggled with reduced in-store visits and increased competition from e-commerce.
Macy’s leadership has said that closing underproductive stores will allow the company to direct their resources to locations where customers are responding positively to new products and improved service. The move is also a response to shareholder pressure to boost profitability and adapt to the evolving retail landscape.
Impact on Employees and Communities
These store closures will inevitably impact employees and local economies. Hundreds of Macy’s workers will be affected by layoffs, but many have been offered transfers to other locations or severance packages. It is also important to note that communities losing their Macy’s store could experience reduced retail activity and fewer shopping options.
Macy’s has said that it is committed to supporting affected employees through the transition and is working with local officials to minimize negative effects. The company emphasizes that these difficult decisions are necessary to ensure Macy’s future viability and continued presence in key markets.
Investment in Remaining Stores
While they are closing many stores, Macy’s is investing heavily in its remaining 350 locations. In the coming months and years, these stores will receive upgrades in product selection, customer service, and in-store technology.
Macy’s has already seen positive results from pilot programs in its “First 50” stores, which have reported increased sales and higher customer satisfaction. The company wants to expand all of these improvements nationwide and aims to create a more modern and engaging shopping environment for customers who continue to shop in person.
Expansion of Luxury Brands
As part of its new strategy, Macy’s also wants to double down on its luxury brands, Bloomingdale’s and Bluemercury. By 2027, the company wants to open 15 new Bloomingdale’s stores and at least 30 new Bluemercury locations.
On top of that, about 30 Bluemercury stores will be remodeled. Macy’s believed that focusing on the segment will help attract new customers and push growth, as these brands have outperformed the traditional Macy’s stores in recent years.
The Future of Macy’s Online
Macy’s also wants to prioritize its digital channels as part of the transformation. The company is currently investing in technology to create a seamless shopping experience online and in-store.
Now, customers are able to access detailed information about local stores, shop online, and enjoy improved fulfillment options. Macy’s hopes that a better digital presence will help keep existing customers and attract new ones, especially as more shoppers turn to e-commerce for convenience and more selection options.
Customer Reactions and Next Steps
Customers nationwide have had mixed reactions to these closures. Some are upset about the loss of their local Macy’s, while others welcome the promise of better products and service at remaining stores. Clearance sales have already begun at some of the closing locations, giving shoppers massive discounts on many of their items.
Macy’s encourages customers to use its website to find the nearest open store or shop online. The company will continue to announce additional closures through 2026. They will keep shoppers updated about this on their website and through local news outlets.
Macy’s Vision for the Future
Despite the challenges, Macy’s leadership is optimistic about the future. The “Bold New Chapter” strategy is intended to create a leaner, more profitable company focused on customer experience and innovation.
By investing in successful stores, expanding luxury brands, and enhancing digital capabilities, Macy’s aims to remain a leading retailer in the years ahead. The company acknowledges that change is difficult but believes these steps are necessary to adapt and thrive in a rapidly evolving retail landscape.
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