Macy’s to Close 14 Stores as Part of Major Turnaround Strategy

Macy’s is moving forward with plans to close 14 additional stores in early 2026, a step executives say is necessary to reposition the struggling department store chain for long-term stability. The closures are part of a broader effort to reshape Macy’s physical footprint after years of declining mall traffic and shifting consumer habits.

The announcement comes as Macy’s is showing early signs of recovery. According to Fox Business, Macy’s sales recently reached their highest level in more than three years, a milestone executives have pointed to as proof the turnaround plan is beginning to work.

Even so, the decision to shutter stores highlights how fragile that progress remains. For Macy’s, recovery is not about growth everywhere, but about narrowing focus to where the business still performs.

What the Store Closures Are Designed to Do

The 14 store closures are one piece of Macy’s broader restructuring plan known as A Bold New Chapter. In announcing the strategy, CEO Tony Spring said the company plans to close approximately 150 “underproductive” locations by the end of 2026 while prioritizing investment in about 350 core stores.

Spring described the strategy as a way to “fundamentally reposition the company,” focusing on modernizing stores, improving merchandise relevance, and simplifying operations. He emphasized that not all locations can justify continued investment in a retail environment that has changed dramatically since the pandemic.

Alongside closures, Macy’s is leaning into its stronger banners. Bloomingdale’s and Bluemercury have continued to post consistent growth, giving the company profitable segments to build around as it shrinks the core Macy’s footprint.

Why Macy’s is Closing Stores Even as Sales Improve

The move to close stores while reporting stronger sales reflects the uneven nature of today’s retail recovery. In a research note cited by Fox Business, JPMorgan analysts led by Matthew Boss said shoppers are gravitating toward specific “giftable” categories while remaining selective about discretionary spending overall.

Macy’s has pointed to its remodeled “Reimagine” stores as evidence that targeted investment pays off. Tony Spring said sales at those upgraded locations rose 2.7% year over year, driven by improved staffing, updated layouts, and tighter inventory management.

The problem, executives acknowledge, is that many legacy stores—particularly in struggling malls—cannot be upgraded profitably. Rather than spread capital thin, Macy’s is choosing to close weaker locations and concentrate resources where customer demand is strongest.

What Macy’s Closures Say About the Retail Industry

Macy’s decision comes amid a broader wave of retail contraction across the U.S. Writing about the recent retail meltdown, Economy Insights note that more than 7,300 U.S. stores closed in 2024 alone, with analysts projecting as many as 15,000 closures in 2025 as inflation, high interest rates, and online competition squeeze traditional retailers.

Department stores have been particularly vulnerable as shoppers spend less time in malls and more money online or on experiences. Even relatively healthy chains, including Macy’s, have been forced to reevaluate how many physical locations they truly need to remain profitable.

For Macy’s, closing 14 stores is less about retreat and more about recalibration. The company is betting that a leaner footprint, paired with focused investment, offers its best chance to survive and compete in a retail landscape that no longer rewards size alone.