Liquidation signs now dot Macy’s stores nationwide, signaling the end of an era as clearance racks fill sales floors and employees brace for permanent closures. This initial wave targets 150 underperforming locations, marking a pivotal shift in the retailer’s long-term survival strategy amid relentless e-commerce pressures.
Job Losses Mount
Confirmed layoffs have already struck, with state WARN notices reporting 1,050 positions cut from two Connecticut fulfillment centers and 89 from New Jersey stores in January 2026. Shuttering 150 full-line department stores could displace 3,750 to 7,500 workers, calculated from Macy’s 94,189 employees across 424 locations, averaging 222 per store. Smaller formats typically staff 25 to 50, while larger ones like Tracy, California, started with 130. These cuts follow the holiday peak, amplifying insecurity even after robust seasonal sales.
Strategy Launched
Macy’s “Bold New Chapter,” detailed in February 2024 SEC filings, commits to closing about 150 weaker stores while upgrading 350 stronger ones and bolstering online operations. By late 2025, 66 closures represented 44 percent of the goal, driven by falling mall visits and online rivals offering quicker delivery and tailored experiences. Now in its second year, the plan moves from blueprint to action, with tangible impacts unfolding.
Shifting consumer preferences favor digital speed and specialized venues over sprawling mall anchors. Macy’s systematic reviews exposed uneven performance, prompting targeted exits that strain nearby retailers reliant on foot traffic. Each departure erodes mall vitality, hastening broader declines in traditional shopping centers.
14 Stores Go Dark
The opening salvo shutters 14 sites in the first quarter of 2026, spanning over ten states including New Jersey, California, Texas, New York, and Washington. Liquidation kicked off in mid-January, with a 10-week countdown to final doors locked. New Jersey’s Livingston Mall and Ramsey’s Interstate Shopping Center, longtime hubs, now force residents to travel farther for essentials, hitting local economies through job losses and reduced neighboring business traffic.
Staff at sites like California’s La Mesa and Tracy, Texas’ Corpus Christi, and Midwestern outlets face sudden upheaval—lost wages, upended schedules, and dim prospects in retail-heavy areas. CEO Tony Spring called the moves “targeted” in internal messages, yet frontline workers bear the immediate toll.
Rivals Retreat Too
Macy’s joins a chorus of pullbacks: Kroger, Saks Off 5th, REI, and Carter’s cite rising costs and shopper shifts. Coresight Research forecasts 15,000 U.S. closures in 2026 against 5,800 openings, with department stores most exposed. Anchor exits trigger domino effects, slashing visibility for smaller tenants and reshaping retail landscapes.
Analysts note traffic plunges at adjacent stores post-anchor closure, spurring further shutdowns. Malls race to refill voids as liquidation timers tick on these 14 sites.
Leadership, steady under Spring since 2024, pitches closures as disciplined streamlining paired with growth investments. Morale dips as staff navigate cuts amid reinvestment pledges.
Betting on the Winners
Focus sharpens on 125 “Reimagine” stores, where enhancements yielded 2.7 percent sales gains, peaking in December at a three-year high. Bloomingdale’s and Bluemercury drive expansion, with 15 new Bloomingdale’s and 30 Bluemercury outlets planned by 2027.
Early wins offer hope, but e-commerce giants loom large. Observers stress continuous adaptation over isolated trims, as expiring leases and rising demands test profitability.
As these 14 stores fade, Macy’s “Bold New Chapter” faces its sternest test. Success hinges on thriving fewer outlets and digital prowess sustaining viability—not just for the chain, but for malls nationwide grappling with shoppers’ online drift.
Sources:
“Macy’s, Inc. Announces ‘A Bold New Chapter’—Challenging the Status Quo to Drive Growth.” Macy’s, Inc. Newsroom, 27 Feb 2024.
“Macy’s to lay off nearly 1,000 at Connecticut fulfillment center.” Supply Chain Dive, 14 Jan 2026.
“Macy’s To Close Only 14 Stores As Its ‘Bold New Chapter’ Plan Bears Fruit.” Forbes, 9 Jan 2026.
“Coresight Predicts Store Closures will Spike to 15,000 this year.” Retail TouchPoints, 22 Jan 2025.