Liquidation signs are going up as doors quietly begin to close at Macy’s locations across the country. Clearance racks are rolled onto sales floors, timelines are posted, and employees prepare stores for permanent shutdown—part of a plan that will ultimately eliminate 150 locations nationwide.
Thousands of jobs are already disappearing as the chain accelerates its pullback. But this first wave is only the beginning of a much larger retreat.
Job Losses Mount
The scale of Macy’s retrenchment is becoming clearer. Confirmed layoffs already include 1,050 employees from two Connecticut fulfillment centers and 89 workers at New Jersey store locations, according to state WARN notices filed in January 2026.
Closing 150 full-line department stores could ultimately affect between 3,750 and 7,500 jobs nationwide, a projection based on Macy’s company-wide staffing of approximately 94,189 employees across 424 stores—an average of 222 employees per location.
Industry calculations use 25-50 employees for smaller-format stores, though larger locations like Tracy, California initially employed 130 workers. The first wave alone puts hundreds of workers at immediate risk.
Strategy Launched
For employees, the restructuring arrives after the holiday season—traditionally retail’s most stabilizing period—raising fears that even strong sales no longer guarantee security.
Macy’s unveiled its “Bold New Chapter” strategy in February 2024 through SEC filings, outlining a multi-year plan to exit roughly 150 underperforming stores while reinvesting in approximately 350 stronger locations and expanding digital operations.
The initiative reflects years of declining mall traffic and intensifying e-commerce competition. Now entering its second year, the strategy is shifting from planning to execution—with visible consequences.
Why Stores Keep Closing
Through the end of 2025, Macy’s had already closed 66 stores, representing approximately 44% progress toward the 150-store closure target. Department stores have been hit hardest by changing shopping habits.
Consumers increasingly favor online convenience, faster fulfillment, and curated experiences—areas where traditional malls struggle to compete. Macy’s, facing uneven performance across its footprint, began systematically reviewing locations.
Each closure weakens surrounding retailers that depend on anchor traffic, compounding pressure across entire shopping centers.
14 Stores Go Dark
The first phase of closures hits 14 Macy’s locations scheduled to shut down in the first quarter of 2026. Stores span more than ten states, including New Jersey, California, Texas, New York, and Washington.
Liquidation sales began in mid-January, with a roughly 10-week timeline before doors close permanently. This marks only the opening move in a much larger national contraction.
New Jersey Fallout
New Jersey loses two longtime Macy’s locations: Livingston Mall and Ramsey’s Interstate Shopping Center. For many residents, these stores served as primary department shopping hubs.
Their closure forces longer travel for basic retail needs and leaves malls scrambling to fill large anchor vacancies. Local economies feel the impact immediately, from displaced workers to declining foot traffic for nearby businesses.
Workers Displaced
Employees at affected stores face abrupt transitions. Locations in California’s La Mesa and Tracy, Texas’ Corpus Christi, and several Midwestern markets are among those closing.
In internal communications, CEO Tony Spring described the changes as “targeted,” but for workers, the consequences are personal—lost income, disrupted routines, and uncertain futures in regions where retail jobs remain a major employer.
Rivals Retreat Too
Macy’s is not alone. Other retailers—including Kroger, Saks Off 5th, REI, and Carter’s—have also reduced store counts, citing cost pressures and evolving consumer expectations.
As anchor tenants exit malls, smaller retailers lose visibility and traffic, accelerating closures across entire shopping centers. The result is a cascading contraction that reshapes retail geography nationwide.
Closure Surge Data
Retail analytics firm Coresight Research projects approximately 15,000 U.S. store closures in 2026, compared with just 5,800 openings. Department stores remain among the most vulnerable categories.
The imbalance reflects how quickly online retail and hybrid shopping models are overtaking traditional brick-and-mortar formats—leaving legacy chains racing to adapt or retreat.
Mall Domino Effect
When an anchor like Macy’s closes, the effects ripple outward. Analysts warn that adjacent stores often see immediate drops in traffic, triggering additional closures.
With liquidation clocks running on the first 14 locations, malls face a shrinking window to reinvent themselves. Without replacement anchors, many risk sliding into long-term decline.
Inside the Company
Internally, leadership frames the closures as necessary discipline. Tony Spring’s memo to staff emphasizes streamlining while reinvesting in growth areas.
Yet morale remains strained as frontline employees absorb the brunt of restructuring. Balancing reinvestment promises with ongoing cuts is proving difficult as uncertainty spreads across the workforce.
Leadership Direction
Despite speculation, Macy’s leadership remains stable. Tony Spring, who took the helm in 2024, continues to oversee execution of the strategy outlined in SEC disclosures.
The absence of ownership or leadership upheaval suggests the company is committed to seeing the plan through—though the margin for error is narrowing.
Betting on the Winners
Macy’s is doubling down on roughly 125 “Reimagine” stores, where upgrades in staffing, layout, and customer experience have delivered measurable gains. These locations posted sales increases of about 2.7%, with December marking a three-year high.
Bloomingdale’s and Bluemercury remain key growth engines, signaling where Macy’s sees long-term potential. The company plans to open 15 new Bloomingdale’s stores and at least 30 new Bluemercury locations by 2027.
Skepticism Persists
Analysts remain cautious. While reinvestment is showing early promise, competition from e-commerce giants continues to intensify.
Coresight and industry observers warn that ongoing adaptation—not one-time cuts—will be required. With leases expiring and consumer expectations rising, profitability gains remain fragile.
Retail’s Crossroads
As the first 14 stores wind down toward permanent closure, Macy’s “Bold New Chapter” enters its most visible phase. The strategy bets that fewer, stronger locations—paired with digital growth—can sustain relevance.
Whether shoppers return or fully migrate online will determine not just Macy’s future, but the fate of America’s remaining malls.
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.
