Picture walking through a crowded mall, the comforting red star of Macy’s calling like an old pal. For decades, it’s been just a store a cultural touchstone where holiday parades and prom dresses intersect. But the world of retail is changing under our feet, and Macy’s is reauthoring its narrative with a plan as daring as it is melancholy. Nicknamed the “Bold New Chapter,” this plan is closing 150 stores by early 2027, rattling communities and igniting clearance sale manias. It’s a risk-reward bet to exchange big footprints for better focus, and everyone’s talking.
- Bold New Chapter Overview: Announced in February 2024, Macy’s strategy targets closing around 150 underproductive stores by fiscal 2026 (January 2027) to redirect resources toward sustainable growth.
- Initial Wave: 66 locations across 22 states, primarily in Q1 2025; by May 2025, 55 had shuttered, with clearance sales lasting 8-12 weeks.
- Key Investments: $600-$700 million in 350 “go-forward” stores for modern layouts, curated products, and enhanced staffing; expansion into luxury via Bloomingdale’s small formats and Bluemercury spas.
- Notable Impacts: Iconic sites like Brooklyn’s Fulton Street (former Abraham & Straus anchor since 1995) and Philadelphia’s Wanamaker Building are among losses, affecting urban malls and suburban hubs.
It’s not simply about closing stores; it’s Macy’s wagering heavily on a slimmer, meaner future. With 66 stores now slated for closure some, such as the venerable Brooklyn location, lost forever the chain’s pruning with intention. CEO Tony Spring’s plan is apparent: cut the dead wood, invest $600-$700 million in 350 core stores, and shift to luxury with new Bloomingdale’s and Bluemercury locations. It’s a reaction to a world where clicks can beat bricks, and consumers hunger for edited experiences rather than infinite aisles. But can Macy’s manage to do so without sacrificing its soul? The stakes are sky-high in a retail climate strewn with wreckage Joann’s 800 stores, Big Lots’ bankruptcy, Kohl’s and Walgreens cutting locations.
Macy’s is not the only one grappling with the digital shopping boom, the sting of inflation, and the need to offer value in a hurry. From New York’s famous Fulton Street to California’s shopping malls, these shutdowns were a blow, but they’re also an opportunity to redefine what department stores are in 2025. Let’s explore why Macy’s is transforming, what’s shutting down, and whether this shift can keep the star shining bright.
The Why Behind the Cuts: Retail’s New Reality
Macy’s isn’t shuttering stores because it’s getting bored it’s survival in a retail jungle where foot traffic’s dwindling faster than a clearance rack. The pandemic accelerated online shopping, leaving malls less crowded and old-school stores like Macy’s struggling to adapt. Customers now stalk bargains on screens, not shelves, and fast-fashion behemoths like Shein are gobbling up market share. Add in inflation and high interest rates, and it’s little surprise Macy’s is reconsidering its sprawl.
- Retail Challenges: Declining mall foot traffic, accelerated by the pandemic’s online shopping boom, and competition from fast-fashion like Shein pressure traditional stores.
- Economic Pressures: Inflation and high interest rates strain consumer spending, forcing Macy’s to rethink its expansive store network.
- Bold New Chapter Strategy: Launched February 2024, aims to close 150 underproductive stores (about one-third of its footprint) to redirect funds into high-performing locations.
- Strategic Goals: Enhance 350 core stores with better service, optimized inventory, and a premium in-store experience to compete with online and luxury retail.
The “Bold New Chapter” strategy, initiated in February 2024, is Macy’s response: shrink to grow. By closing 150 “underproductive” stores roughly a third of its space Macy’s hopes to conserve money and channel it into winners. Imagine enhanced stores with enhanced service, more efficient inventory, and a feel that yells “worth the trip.” It’s not merely economics; it’s about engaging shoppers where they’re shopping online, in luxury, or seeking something special in stores.
Investor urgency’s also on the table. Large institutional players such as Barington Capital urged property sell-offs, asserting Macy’s properties could be worth more than their revenue. Although that notion’s criticized by those seeking long-term growth rather than short-term gains, it’s a cacophonous alarm: change or perish. Macy’s is opting for change, hoping fewer, high-quality stores and a luxury tilt will outwit the retail apocalypse.
The Closing List: Where the Red Star Fades
The initial batch of 66 closures, publicized in January, covers 22 states, striking urban centers and suburban malls. New York’s losing such marquee names as the downtown Brooklyn location, a onetime Abraham & Straus store that’s been a neighborhood hub since ’95, and the Sunrise Mall store on Long Island, scheduled to close shortly. California is hurt too, with locations such as Los Angeles’ Broadway Plaza and Citrus Heights’ Sunrise Mall already shuttered or ticking down.
- Closure Scope: Initial wave of 66 stores in 22 states, announced in January, aimed at underperforming urban and suburban areas.
- New York store closures: Downtown Brooklyn (community anchor since 1995, site of former Abraham & Straus store) and Long Island’s Sunrise Mall to close shortly.
- California Losses: Los Angeles’ Broadway Plaza and Citrus Heights’ Sunrise Mall already closed or about to close.
- Timeline: As of May, 55 out of 66 stores closed, with speedy clearance sales running down stock.
From Boynton Beach Mall in Florida to Genesee Valley in Michigan, the roll call sounds like a retail death list every closing a blow to local consumers and employees. Sheds like Oregon’s Tanasbourne and Virginia’s Southpark Mall are not simply shops; they’re nostalgia for first jobs, Thanksgiving hauls, and family trips. Within five months, 55 of these 66 were closed, with backroom sales stripping shelves bare at lightning speed.
These aren’t arbitrary selections Macy’s went after “underperforming” stores holding back profits. But it’s not a completely negative: the closings will make room for a $600-$700 million makeover on 350 stores remaining. Imagine sleek designs, high-curated merchandise, and employees schooled to make shopping an event. It’s a gamble, but one Macy’s is hoping will bring them back again and again.
Luxury Over Legacy: The Pivot to Premium
Macy’s isn’t reducing; it’s doubling up on what works. Step in Bloomingdale’s and Bluemercury, the upscale and beauty divisions receiving significant boosts. The strategy? Open 15 new Bloomingdale’s and 30 new Bluemercury outlets, along with 30 Bluemercury redesigns, all by 2027. These aren’t your grandmom’s department stores they’re high-margin, sleek gambles on consumers ready to spend money on quality.
Why the change? Luxury and beauty are retail bright spots, less exposed to online discounters. Bloomingdale’s provides edited fashion; Bluemercury, high-end skincare. Both appeal to a demographic that places more importance on experience than price tags, a far cry from Macy’s bargain-hunting traditional base. It’s a smart play to snag wealthier wallets while renovating core stores to be more upscale.
This shift isn’t risk-free. Driving away loyal, price-sensitive consumers might not pay off, and luxury is a crowded space. But Macy’s reads the tea leaves: broad-market retail is in trouble, and specialization may be the life raft. By doubling down on premium, they’re counting on creating an Amazon-proof, future-proof niche.
The Bigger Picture: Retail’s Rough Road
Macy’s isn’t alone suffering the heat 2025 is shaping up to be a retail bloodbath. Joann’s is gone, all 800 stores closed. Big Lots folded into bankruptcy, Kohl’s is closing 27 more, and Walgreens intends to eliminate 1,200 stores by 2028. Coresight Research estimates 15,000 U.S. closures this year, the worst since 2020’s pandemic highs. It’s a nasty combination of online competition, inflation, and consumers pinching pennies.
- Joann Fabrics: Complete closure of all ~800 stores nationwide following February 2025 bankruptcy filing, ending an 80-year run due to financial struggles and lack of a buyer.
- Big Lots: Bankruptcy proceedings led to the sale of leases for ~480 stores, with ~340 closures announced, marking a major downsizing for the discount chain.
- Kohl’s: 27 underperforming stores closing by April 2025 across 15 states, part of a broader restructuring to support long-term growth.
- Walgreens: On track to close ~450 stores by end of fiscal 2025 (part of 1,200 total by 2027-2028), focusing on underperformers amid economic pressures.
- Overall Trends: Coresight Research projects ~15,000 U.S. closures in 2025 (up from 7,325 in 2024), driven by e-commerce shifts, inflation, and cautious spending; first half alone saw ~6,000 closures.
Department stores, once mall monarchs, are especially bruised. J.C. Penney’s cutting eight stores, and even niche players like Liberated Brands (Volcom, Billabong) filed for Chapter 11, closing all U.S. shops. The culprit? A consumer shift to digital, where convenience and price trump nostalgia. Malls are ghost towns, and retailers like Macy’s are forced to rethink or sink.
This spate of closings isn’t business it’s personal. Jobs are lost, communities lose icons, and consumers bemoan. But it’s also a wake-up call: retail has to change. Macy’s, by cutting waste and making smart bets, is attempting to outrun the reaper. Whether it works is contingent on how acutely they read the room and the market.
Shopping the Sales: Opportunity Amid the Shutdowns
For bargain-gummers, Macy’s store closures are a mixed blessing. The 66 named stores’ clearance sales began in January, cutting prices on all the way from designer clothing to furniture. They run 8-12 weeks for flagship stores and six for Furniture Galleries and Backstage, and they’re an opportunity to get a deal before it’s gone. Through online channels, Macy’s continues to keep deals coming, with Star Rewards adding in rewards through points and free shipping.
- Clearance Sales Details: Launched in January 2025, 66 stores offer discounts on items from designer clothing to furniture; flagship stores run 8-12 weeks, Furniture Galleries and Backstage for six.
- Online Continuity: Macy’s maintains deals via its website, bolstered by Star Rewards offering points and free shipping to retain customers.
- Community Impact: Sales draw nostalgic shoppers but lead to empty storefronts, layoffs, and economic ripple effects for local businesses dependent on mall traffic.
- Strategic Goal: Clear inventory while fostering loyalty to remaining 350 stores and online platforms, balancing immediate savings with long-term brand resilience.
These mall sales aren’t merely about clearing merchandise they’re a lifeline for communities affected by closures. Shoppers mob in nostalgia and savings, but it’s a temporary solution. When the shelves are empty, those stores are gone, and there are empty storefronts and economic shockwaves left behind. Employees get laid off, and local businesses reliant on mall traffic suffer.
Nevertheless, Macy’s is counting on the savings driving loyalty to its remaining stores and website. It’s a balancing act: clear out inventory, retain customers, and send a message of a new beginning. Whether customers follow Macy’s to its redesigned stores or wander to rivals will put the strategy’s mettle and the brand’s resilience to the test.
Final Thought
Macy’s “Bold New Chapter” is more than a corporate cliché it’s a lifeline in a storm of retail trouble. Shutting 150 stores stings, but it’s a strategic trim to preserve the heart. By placing a bet on luxury, doubling down on what works, and doubling down on digital, Macy’s is struggling to remain relevant. The takeaway? Evolve or wilt. As the red star fades in some burgs, it’s shining brighter where it matters. Fingers crossed Macy’s rewrites retail’s next chapter with passion, not just pizzazz.
