Macy’s Inc. shutters two Cheshire, Connecticut, distribution centers, cutting 993 jobs by August 2026, as retail giants navigate a seismic shift toward streamlined operations and e-commerce dominance.
Strategic Overhaul Drives Closures
Macy’s “Bold New Chapter” plan fuels these cutbacks, aiming for $235 million in savings by 2026. The company reported $14.1 billion in net sales for the first nine months of fiscal 2025, amid persistent sector pressures. Yet, its 125 “Go Forward” stores posted a 2.7% sales uptick, underscoring a pivot to high performers. Nationwide, Macy’s plans 150 store closures by year-end 2026, following 66 shut in 2025, to refine its logistics and sharpen focus on thriving sites.
Job Losses Hit Connecticut Hard
The Cheshire facilities on Knotter Drive and W. Johnson Avenue will eliminate 993 positions in phases from March to August 2026. An extra 57 layoffs in South Windsor push Connecticut totals near 1,050. Longtime staff in distribution and fulfillment now confront abrupt change, rippling through local families and the state’s logistics hub.
State Steps Up for Workers
Connecticut’s Department of Labor launched a rapid response team after Macy’s filed a federal WARN notice on January 13, 2026. Officials are linking displaced employees to reemployment aid, training, and transition programs. Survivors may face longer commutes to distant warehouses, complicating inventory for the state’s six remaining Macy’s stores.
Amazon Fills the Logistics Void
As Macy’s retreats, Amazon advances with a new Waterbury-Naugatuck fulfillment center, set to employ over 1,000. Construction progresses to bolster regional e-commerce. This handover highlights intensifying rivalry, with online players absorbing capacity from shrinking traditional networks. Other Connecticut setbacks include Walgreens’ 2024 Killingly warehouse closure, axing 322 jobs, and Edgewell Personal Care’s planned 293 cuts in Milford by late 2027.
Broader Retail Transformation Unfolds
Shoppers swarm clearance events at closing stores, snapping up discounted clothing, home goods, and accessories in weeks-long liquidations. The moves mirror retail’s pivot: declining in-store traffic yields to digital demands for swift delivery, automation, and centralized hubs. Macy’s sheds regional warehouses for efficient, tech-fueled chains, while e-commerce erodes old models. Job seekers eye Amazon roles and state retraining in automation; investors track the $235 million savings against ongoing adaptation hurdles.
Connecticut’s logistics scene faces ongoing flux through Macy’s three-year revamp, potentially yielding more closures by early 2027. E-commerce expansion offers offsets, but workers, communities, and local economies grapple with immediate upheaval as traditional retail yields ground to agile newcomers.
Sources: “Macy’s, Inc. Reports Third Quarter 2025 Results.” Macy’s Inc., 3 Dec. 2025.
“Macy’s to lay off nearly 1000 at Connecticut fulfillment center.” Supply Chain Dive, 14 Jan. 2026.
“Macy’s closing 66 more stores in 2025. See the closure list.” Axios, 9 Jan. 2025.
“New Amazon Fulfillment Center Will Create 1,000 Jobs.” Connecticut Business & Industry Association, 21 Oct. 2025.