The world of retail is changing dramatically, and Macy’s, a beloved American department store, is right in the middle of it all with its new “Bold New Chapter” strategy. This isn’t just a small tweak; it’s a major plan to completely change how they do business, involving closing many stores, investing smartly, and rethinking the whole shopping experience.
At the heart of this strategy is a painful but calculated decision to close a substantial number of its locations. The company has announced plans to shutter 150 “underproductive” Macy’s store locations by 2026, a move that will undoubtedly impact countless communities and change long-standing shopping habits. While such closures can feel unsettling, Macy’s leadership asserts that this aggressive pivot is essential to return the company to “sustainable, profitable sales growth” in a rapidly changing market.
This in-depth look will explore the multifaceted components of Macy’s “Bold New Chapter” strategy. We’ll delve into the scale of the planned closures, examine the reasons driving these decisions, and highlight the significant investments Macy’s is making in its remaining locations. From iconic stores bidding farewell to the promising future of remodeled spaces, we aim to provide clarity on how this historic transformation is unfolding and what it means for the future of one of retail’s enduring giants.
1. **The Grand Strategy: Macy’s “Bold New Chapter” and Its Scale**
Macy’s has publicly dubbed its sweeping organizational change as the “Bold New Chapter,” a strategic initiative that serves as a three-year turnaround plan. This plan is not just about cutting losses, but fundamentally about modernizing operations and strategically divesting from locations that are no longer performing to the company’s expectations in the current economic and retail climate. It’s an acknowledgment that the traditional department store model requires significant adaptation.
The main part of this big plan is shutting down about 150 “underperforming” Macy’s stores by the end of 2026. Macy’s stated in January 2025 that this move aims to help the company get back to “sustainable, profitable sales growth,” showing they’re focused on both becoming more efficient now and ensuring they can thrive in the future.
Crucially, this strategy extends beyond simply shutting down underperforming stores. Macy’s also plans significant investments in its remaining 350 current Macy’s locations. These enhancements are slated to roll out through the company’s 2026 fiscal year, which concludes on January 30, 2027. This suggests a careful balance between strategic retraction and robust revitalization of its most promising assets.
2. **The First Wave of Closures: 66 Locations Identified in 2025**
As part of its initial efforts under the “Bold New Chapter,” Macy’s in January named 66 of the 150 stores slated for closure. This first wave of announcements has already seen some of these locations either closing their doors recently or preparing to do so in the very near future. The impact of these decisions is beginning to be felt across numerous communities nationwide, as clearance sales commence.
These initial 66 closures span across a wide array of states, including prominent retail markets like New York, Florida, Arizona, and California, among others. The list also regrettably features some of the chain’s most iconic and long-standing locations. The comprehensive nature of these early closures highlights Macy’s commitment to swiftly implementing its announced strategy.
While the first 66 stores have been identified and, in many cases, are already in the process of shutting down in 2025, Macy’s has not yet provided a timeline for announcing the additional stores that will close. The context clearly indicates that this list is not final, and it “may keep growing until Macy’s hits its 150-store target.” This ongoing uncertainty will keep many communities on edge.
3. **Decoding the “Why”: Shifts in Consumer Behavior and the Digital Tide**
The fundamental reasons behind Macy’s extensive closure strategy are rooted deeply in profound shifts in consumer behavior and the evolving retail landscape. According to CEO Tony Spring, these closures are a direct response to “consumer behavior shifts, rising retail costs, and store performance data.” The traditional large-format department store model faces unprecedented challenges.
One of the most significant factors is the undeniable ascent of online shopping. The context explicitly states, “Digital commerce is gaining momentum, and consumers are increasingly choosing to shop from their phones or laptops instead of visiting malls.” This isn’t seen as a temporary trend; industry experts agree, “it’s not a passing phase,” confirming a permanent change in how people prefer to shop.
Furthermore, “larger, legacy locations simply aren’t cutting it anymore, especially with online shopping and lifestyle shifts post-COVID.” The decline in foot traffic in malls, a trend observed across traditional retail, directly impacts the viability of these extensive brick-and-mortar stores. Macy’s is strategically targeting these “underproductive” locations to streamline operations and prevent further losses, ensuring a healthier future for the remaining fleet.
4. **A Strategic Reinvestment: Fortifying the 350 Remaining Macy’s Stores**
Amidst the headlines of store closures, it is vital to recognize that Macy’s strategy is not solely about contraction; it’s equally about calculated expansion and significant reinvestment. The company is committing substantial resources to its approximately 350 Macy’s locations that are slated to remain open, viewing them as the foundational elements of its future retail presence. This is a crucial distinction in the overall “Bold New Chapter.”
The purpose of this reinvestment is clear: to focus resources and prioritize investments in these “go-forward stores.” The expectation is that these locations will better cater to contemporary customer expectations, offering enhanced product offerings and elevated service. This strategic choice aims to cultivate environments where customers are already responding positively, creating a more engaging and profitable shopping experience.
CEO Tony Spring underscored this strategic balance, stating, “Closing any store is never easy, but as part of our Bold New Chapter strategy, we are closing underproductive Macy’s stores to allow us to focus our resources and prioritize investments in our go–forward stores, where customers are already responding positively to better product offerings and elevated service.” This statement highlights the integral connection between closures and future growth.
By concentrating their investments on specific stores, Macy’s wants to make its overall presence stronger and adjust its physical locations to better match where shoppers are actually spending their time and money. This approach recognizes that physical stores still matter, but they need to offer something special that complements the ease of online shopping.
5. **Experiential Upgrades: How Remodeled Stores are Outperforming**
The commitment to the 350 remaining Macy’s stores is manifesting in tangible, customer-facing improvements. The company has already moved forward with remodeling a significant portion of these locations, demonstrating its dedication to elevating the in-store experience. These upgrades are not just cosmetic; they are designed to fundamentally enhance how customers interact with the brand and its merchandise.
Specifically, Macy’s has reported that “125 have already been remodeled, with upgrades to layout, lighting, and in-store experiences.” These details indicate a focus on creating a more modern, inviting, and efficient shopping environment. Improved layouts can make navigating the store easier, while enhanced lighting can better showcase products, leading to a more pleasant visit for the customer.
The results of these remodels are already proving promising. According to CEO Tony Spring, “the remodeled stores are ‘outperforming the rest of the fleet’ a rare retail win in a market full of shutdowns.” This positive feedback validates Macy’s strategy, suggesting that targeted investments in the physical shopping environment can indeed drive better performance and customer engagement, even in a challenging retail climate.
This success underscores the belief that while online shopping continues to grow, there is still a demand for compelling brick-and-mortar experiences. Macy’s aims to meet this demand by creating spaces that encourage discovery, provide excellent service, and ultimately, bring the brand closer to where shoppers are actually spending their time and money. The remodels are a critical step in making Macy’s physical stores destinations once again.
6. **Iconic Departures: Unpacking Major Store Closures from Brooklyn to Long Island**
The impact of Macy’s strategic closures is particularly poignant in the case of several iconic locations, which have served as community staples for decades. One such notable closure happened recently in downtown Brooklyn, where the Macy’s store on Fulton Street ceased operations. This location had a nearly three-decade run under the Macy’s banner, representing a significant piece of local retail history.
The Brooklyn store’s legacy ran even deeper, as Macy’s originally took over the building in 1995 after it had housed the very first Abraham & Straus department store. This historical context amplifies the significance of its closure, marking the end of an era for a building that played a foundational role in New York’s retail heritage. Its departure leaves a palpable void in the downtown Brooklyn shopping district.
Another significant New York institution facing closure is the Macy’s store located on Long Island at Sunrise Mall, which is also set to close its doors next month. These specific examples underscore that the closures are not confined to lesser-known locations but include high-profile stores that hold considerable sentimental and economic value for their communities, reflecting the widespread nature of the “underproductive” assessment.
Beyond New York, the named closures for 2025 impact a broad spectrum of states, including key locations. In California, stores in Los Angeles, Chula Vista, San Diego, Westminster, Citrus Heights, and Newark are among those closing. Florida sees closures in Sarasota, Fort Lauderdale, Pembroke Pines, Tampa, and Boynton Beach. Texas is affected with stores in Dallas, Houston, Plano, Fort Worth, and Flower Mound. Michigan, Pennsylvania, Oregon, Illinois, Georgia, Louisiana, Missouri, Minnesota, Maryland, Virginia, and Washington also have locations on the list, demonstrating the extensive reach of this nationwide restructuring.
7. **Navigating the Timeline: When and How Macy’s Closures Are Unfolding**
While Macy’s has outlined a broad strategy to close 150 stores by 2026, the specific timeline for each individual closure, beyond the initial 66 named locations, remains somewhat fluid and unclear. This ongoing process means that customers in many areas may still be wondering about the fate of their local Macy’s, as the company has not yet announced when it will reveal additional store closures.
For the stores that have already been named for closure, the process typically begins with clearance sales. These sales, offering significant discounts, started in January and were generally scheduled to run for approximately 8 to 12 weeks. This period allows customers to take advantage of final deals before the store permanently shutters its doors, creating a last opportunity for shoppers.
Specific timelines apply to different store formats within the Macy’s ecosystem. For instance, clearance sales at Macy’s Backstage stores and Macy’s Furniture Galleries were scheduled to commence in February and run for about six weeks. This phased approach to liquidation suggests a carefully managed process, even as the broader timeline for future announcements remains unstated.
It’s important to remember that these store closures are just the latest step in a process Macy’s has been undergoing for about ten years. Since 2015, they’ve closed hundreds of stores, including 45 in 2021 and 28 in 2020, showing that this “Bold New Chapter” is a continuation of their long-term effort to adapt to changing retail trends and stay competitive.
8. **Immediate Impacts on Shoppers: Sales, Price Adjustments, and New Product Offerings**
For the millions of loyal Macy’s shoppers, the “Bold New Chapter” brings both challenges and opportunities directly to their shopping experience. As stores slated for closure wind down operations, customers can expect significant clearance sales, with discounts often reaching up to 60% off on a wide array of merchandise. This provides a final chance to snag favorite items at deeply reduced prices.
However, the retail overhaul also introduces potential shifts in pricing for certain items. Macy’s has indicated that prices may rise on specific goods, particularly due to new tariffs imposed on products sourced from China. The company assures shoppers that these adjustments will be applied “surgically,” implying a targeted approach rather than a sweeping increase across all inventory.
Beyond pricing, the product mix itself is undergoing a transformation. Shoppers may notice the disappearance of certain items, especially private-label brands that were previously sourced from China and no longer offer value at higher costs. This strategic pruning aims to streamline offerings and focus on more profitable lines.
To counterbalance these changes, Macy’s is actively refreshing its fashion portfolio with an influx of new brands. The retailer is introducing exciting names like Good American, Firi, and Nick and Zoe, among others. This move is part of Macy’s broader push to invigorate its merchandise assortment and provide customers with fresh, contemporary fashion choices that reflect evolving trends.
9. **Expansion into Small-Format Store Concepts**
A significant component of Macy’s “Bold New Chapter” strategy is a strategic pivot towards smaller-format store concepts, which represent a modern adaptation to shifting consumer preferences. Recognizing that larger, legacy locations are no longer meeting contemporary shopping needs, Macy’s plans to open 30 new small-format Macy’s locations as part of its three-year turnaround initiative. This move aims to reshape its physical footprint for a new era.
This initiative is a direct response to the ongoing evolution of how and where people shop today. These smaller stores are designed to be more agile, cost-effective, and better suited to communities that may not sustain a full-scale department store. They aim to bring the Macy’s brand closer to customers in a more convenient and accessible format, aligning with current lifestyle demands.
The commitment to opening these new, streamlined stores underscores Macy’s dedication to modernizing its operations. By focusing on smaller footprints, the company can enhance efficiency, reduce overhead, and create a more curated shopping experience. This allows Macy’s to maintain a physical presence while adapting to trends that prioritize convenience and localized offerings.
The introduction of these smaller-format stores directly addresses the challenges posed by declining mall foot traffic and the rise of digital commerce. It provides Macy’s with an opportunity to engage with customers in a more targeted manner, offering a selection of popular items and services without the extensive operational costs associated with traditional large-scale department stores. This strategic expansion is vital for the brand’s long-term sustainability.
10. **Growth Strategy for Luxury Brands: Bloomingdale’s and Bluemercury**
While Macy’s is strategically streamlining its core department store footprint, it is simultaneously investing heavily in the growth and expansion of its luxury brands, Bloomingdale’s and Bluemercury. This dual strategy highlights a clear focus on diversifying its portfolio and capturing different segments of the upscale retail market. The company sees significant potential in these higher-end offerings.
As part of the comprehensive three-year plan, Macy’s has announced ambitious growth targets for its luxury segments. This includes the development of 15 new Bloomingdale’s stores. These new locations will expand the reach of the upscale department store brand, catering to customers seeking premium fashion, accessories, and home goods in a refined shopping environment.
Additionally, the beauty concept store, Bluemercury, is set for substantial expansion. Macy’s plans to establish 30 new Bluemercury beauty concept stores, alongside undertaking approximately 30 remodels of existing Bluemercury locations. This significant investment in Bluemercury underscores the increasing demand for high-quality beauty and skincare products, and Macy’s aims to solidify its position in this lucrative market.
This strategic emphasis on Bloomingdale’s and Bluemercury demonstrates Macy’s commitment to capturing market share in the luxury retail space. By prioritizing these brands, Macy’s is betting on the resilience of the high-end consumer and the continued growth of specialized beauty retail. This strategy offers an elevated shopping experience that complements its evolving core Macy’s brand.
11. **The Role of Macy’s Backstage**
Macy’s Backstage plays a distinct and important role within the retailer’s broader strategy, offering an outlet-style shopping experience that caters to budget-conscious consumers. This innovative concept provides discounted name-brand goods, effectively acting as a value-oriented extension of the main Macy’s brand. It represents an adaptive measure to attract a wider demographic in a competitive market.
These mini-stores are typically integrated within existing Macy’s locations, creating a “store-within-a-store” model. This allows Macy’s to leverage its current real estate while offering a differentiated shopping experience. The presence of Backstage provides an additional draw for in-person shoppers, giving them access to popular brands at more accessible price points.
The strategic placement and offering of Macy’s Backstage are designed to appeal to shoppers who are increasingly looking for value and deals, especially in a competitive retail environment. By providing a curated selection of discounted merchandise, Macy’s aims to capture sales from consumers who might otherwise turn to off-price retailers. It’s a key part of their effort to stay relevant across various price segments.
Furthermore, Macy’s Backstage locations adhere to a specific timeline for clearance sales during periods of store closures. For instance, clearance sales at Macy’s Backstage stores and Macy’s Furniture Galleries were scheduled to commence in February and typically run for approximately six weeks. This ensures a consistent and managed approach to inventory liquidation, maintaining operational efficiency even during transitions.
12. **CEO Tony Spring’s Statements on Strategy Progress**
Macy’s CEO and chairman, Tony Spring, has been a central figure in explaining the thinking behind the “Bold New Chapter” strategy and sharing updates on its progress. He has repeatedly stressed how crucial these changes are for the company’s long-term health and ability to adapt.
Spring openly addressed the difficulty of store closures, stating, “Closing any store is never easy, but as part of our Bold New Chapter strategy, we are closing underproductive Macy’s stores to allow us to focus our resources and prioritize investments in our go–forward stores, where customers are already responding positively to better product offerings and elevated service.” This highlights a strategic re-allocation of resources.
He also provided positive updates on the performance of remodeled locations, noting that “the remodeled stores are ‘outperforming the rest of the fleet’ a rare retail win in a market full of shutdowns.” This specific data point offers tangible evidence that the investments in improving the physical shopping experience are yielding desirable results and resonating with customers.
During Macy’s Q1 earnings call, Spring conveyed cautious optimism regarding sales recapture. He stated, “We’re slightly ahead of expectations on recapturing sales,” acknowledging that while short-term disruption is anticipated, the company is already witnessing positive responses where improvements have been implemented. This demonstrates a proactive approach to managing the transition while looking for early successes.
Furthermore, Spring has consistently attributed the closures to fundamental shifts in the market, explaining that they are a direct response to “consumer behavior shifts, rising retail costs, and store performance data.” His clear communication underscores Macy’s analytical and data-driven approach to adapting to the evolving challenges within the retail sector, aiming for a more agile and profitable future.
13. **Contextualizing Macy’s Transformation within Broader Retail Challenges**
Macy’s major transformation, while significant for the company itself, reflects wider challenges affecting the entire traditional retail industry. The beginning of 2025 has already highlighted a difficult environment for physical stores, especially department stores, as they face major shifts in how people shop.
The undeniable rise of digital commerce stands as one of the most powerful forces reshaping the industry. Consumers are increasingly opting for the convenience of online shopping, choosing to browse and purchase from their phones or laptops rather than visiting traditional malls. Industry experts widely agree that “it’s not a passing phase,” affirming this as a permanent alteration in consumer preference.
This shift has resulted in a noticeable decline in foot traffic for many brick-and-mortar locations, making it difficult for large, legacy department stores to maintain their once-thriving presence. Macy’s is explicitly responding to these realities, acknowledging that “larger, legacy locations simply aren’t cutting it anymore, especially with online shopping and lifestyle shifts post-COVID.”
Beyond the impact of online shopping, other factors like intense competition and rising inflation are significantly influencing every purchasing decision. Macy’s transformation is a strategic effort to “stay relevant in an era when foot traffic is down, competition is brutal, and inflation is reshaping every shopping decision,” highlighting the immense pressure on retailers to adapt or risk becoming obsolete.
The general feeling in the retail world is that “only the most agile and innovative brands will weather the storm.” Macy’s “Bold New Chapter” is a serious attempt to be that agile, streamlining its operations and cutting losses from less successful stores to bring the company “closer to where shoppers are actually spending time and money.”
14. **Practical Guidance for Customers Navigating These Changes**
For Macy’s customers adapting to these significant changes, navigating the evolving retail landscape requires a few practical considerations. Firstly, for those whose local Macy’s store is among those closing, the immediate priority should be to take advantage of the ongoing clearance sales. These are your last opportunities to secure favored items at substantial discounts, often up to 60% off, before the doors close permanently.
It is also advisable for shoppers to stay informed about the status of their local store. While Macy’s has announced the initial 66 closures, the timeline for additional announcements remains fluid. The most reliable way to verify if a particular store is open or closed is to visit the Macy’s website and utilize their store locator tool, ensuring you have the most current information.
Even if a physical store is closing, customers should not panic about losing access to Macy’s offerings entirely. The brand maintains a robust digital presence that is “getting more attention than ever,” offering a comprehensive online shopping experience. This digital platform serves as a convenient alternative, ensuring continuous access to a wide range of products and services from the comfort of home.
Furthermore, for customers in areas affected by closures, exploring nearby Macy’s locations that are part of the “go-forward” strategy can be beneficial. These remaining 350 stores are undergoing significant reinvestment and remodels, promising “better product offerings and elevated service.” They represent the future of Macy’s physical retail and could become new preferred shopping destinations, offering an elevated experience.
Finally, shoppers should definitely check out the new products and brands Macy’s is bringing in. Keep an eye out for labels like Good American, Firi, and Nick and Zoe, whether you’re shopping in their remaining stores or online, because you might discover some exciting new fashion finds. Macy’s is committed to updating its inventory, giving customers plenty of reasons to keep engaging with the brand, both in person and online, for a fresh shopping experience.
Macy’s “Bold New Chapter” is certainly a time of major change, with significant store closures but also a strategic renewal. It truly shows the lasting power of adaptation in retail, where well-known brands must evolve courageously to meet the demands of today. While the department store landscape might look different, Macy’s is actively creating a future focused on steady growth, keeping customers engaged, and remaining relevant in a market that’s always changing. Shoppers are encouraged to explore the refreshed offerings, both in their improved physical stores and their vibrant online shop, as this retail giant moves forward.
