Macy’s Inc. is closing stores even as it reports its strongest sales performance in more than three years, signaling a strategic shift rather than distress. The retailer plans to close 14 locations across 12 states this year as part of a three-year effort to reduce its number of underperforming sites by roughly 150. Comparable sales increased 2.7% in upgraded stores during the third quarter of 2025, reflecting the success of its transformation efforts.
CEO Tony Spring, formerly of Bloomingdale’s, emphasizes careful consolidation and targeted investments. “In executing our strategy, we continue to review our portfolio and make careful decisions about where and how we invest, including closing underproductive stores and streamlining operations,” Spring stated in a January 8, 2026, memo. Here’s what’s happening as Macy’s charts its bold new path.
Closures Reflect Strategy, Not Panic
Macy’s upcoming store closures cover California, New Jersey, Georgia, Maryland, Michigan, Minnesota, Connecticut, New Hampshire, North Carolina, Pennsylvania, Texas, and Washington. Key locations include Grossmont Center in La Mesa, West Valley Mall in Tracy, Livingston Mall in New Jersey, and Interstate Shopping Center in Ramsey. These moves are part of the “Bold New Chapter” plan outlined in February 2024, aimed at consolidating Macy’s footprint to about 350 core stores—a roughly 30% reduction.
The initiative addresses underinvestment, oversaturation, and inconsistent customer experiences. While the closures carry human consequences, Macy’s provides employee transfers, severance, and job placement support. Retail cashier wages average $27,000 annually, often with irregular hours, underscoring the personal impact. This calculated downsizing allows the company to reinvest in higher-performing stores, positioning Macy’s for sustainable growth rather than reactive cuts.
“Bold New Chapter” Accelerates Growth
Macy’s plan pairs closures with upgrades at roughly 350 stores. In 2024, 55 stores were shuttered, followed by 66 in 2025. Adding this year’s 14 closures brings the total to 135—90% of the 150-store goal—putting Macy’s ahead of schedule. The upgraded “Reimagine” stores feature enhanced staffing, lighting, merchandising, and streamlined inventory, driving a 2.7% comparable sales growth in Q3 2025—the company’s strongest quarter in 13 quarters.
The first 50 upgraded stores in 2024 showed sustained sales improvements. Third-quarter results exceeded expectations, with net sales reaching $4.7 billion. Comparable sales increased 2.5% on an owned basis and 3.2% including licensed departments. Full-year guidance rose to $21.4 billion–$21.6 billion in net sales and $2.00–$2.20 in earnings per share. Macy’s strategy shows that closures and upgrades can coexist as part of a coherent growth plan.
Luxury and Private Brands Drive Momentum
Upscale segments lead Macy’s turnaround. Bluemercury posted 19 consecutive quarters of comparable sales gains, fueled by brands such as Byredo, Victoria Beckham Beauty, and Charlotte Tilbury. Nearly half of Macy’s customers earn over $100,000 annually, with Bloomingdale’s attracting even higher earners. This luxury shift counters the trend of shoppers moving toward discounters.
Private brand offerings are also rebounding. Penetration grew from 16% of sales in 2022 toward 20% by 2025. New label On 34th offers 750 women’s items priced from $18.50 to $299.50, informed by more than 100,000 customer surveys and fit studies. Alongside 25+ existing labels, Macy’s is enhancing its assortment to appeal to higher-income shoppers and strengthen store performance across formats.
Operational Investments Strengthen Supply Chain
Macy’s is enhancing its operational backbone with a $584 million, 2.5-million-square-foot automated fulfillment center in China Grove, North Carolina, opened in October 2025. The center will handle approximately 30% of digital supply chain volume, reducing split shipments and speeding delivery for apparel, toys, and other products.
Real estate sales complement operational investments. Macy’s generated $150 million in proceeds in 2025 and aims for $600 million–$750 million in 2026 from store closures, CFO Tom Edwards reported. These resources, combined with upgraded stores and private brand growth, reinforce the retailer’s ability to invest strategically and maintain momentum while managing a leaner store footprint.
Future Outlook and Challenges
Once the plan concludes, Macy’s will operate 350 department stores, including additional “Reimagine” formats and 30 smaller tests, alongside 32 Bloomingdale’s, 25 outlets, 4 Bloomie’s concepts, and 174 Bluemercury locations. Wall Street remains cautious, with the stock trading at 0.22X forward price-to-sales versus the industry’s 0.46X, citing tariffs, economic pressures, and execution hurdles. Shares gained 53% over the past year, showing investor optimism amid transformation.
By late 2026, 90% of closures are expected to be complete. Success will hinge on sustaining sales momentum, luxury segment strength, and operational efficiencies. Macy’s faces high stakes: a leaner, more profitable business is possible, but uneven performance or external pressures could test its resilience. The company’s evolution offers insight into balancing growth, efficiency, and customer experience in retail’s shifting landscape.
Sources
Macy’s Inc. Confirms Planned Macy’s Store Closures. Macy’s Inc., January 8, 2026
Macy’s Inc. Reports Third Quarter 2025 Results. Macy’s Inc., December 3, 2025
Macy’s Inc. Announces “A Bold New Chapter.” Macy’s Inc., February 27, 2024
Macy’s targets another 14 stores for closure. Retail Dive, January 8, 2026
Can Macy’s win back America? How CEO Tony Spring is moving… Fortune, October 18, 2025