Macy’s to Close 66 Stores in 2025 Amid Retail Restructuring

Subscribe to our free newsletter today to keep up to date with the latest retail news.

Macy’s, one of the most iconic names in American retail, is set to close 66 stores in 2025 as part of a sweeping realignment under its “Bold New Chapter” strategy. This plan, first introduced in early 2024, aims to shutter 150 underperforming locations by the end of 2026. The company is moving to recalibrate its physical footprint and improve customer experience as foot traffic declines and consumer preferences evolve.

The planned closures span 22 states, affecting stores in markets like New York, California, Florida, and Texas. Many of these are legacy mall locations that have struggled to maintain profitability. Macy’s leadership maintains that the strategy is necessary to redirect resources toward high-growth opportunities and reshape the business for long-term success.

The scope of closures and which locations are being affected

The initial batch of closures includes five stores already set to wind down operations by the end of April 2025. Among them are key locations in Arlington, Virginia, and San Leandro, California. In total, Macy’s will close stores in more than 20 major and secondary markets, based on performance metrics such as sales productivity, real estate value, and customer behavior.

While Macy’s has not published a complete list for future closures, analysts estimate that most affected sites are in regional malls that have seen significant decline. Real estate value is a core factor, as Macy’s looks to monetize land parcels in key urban and suburban areas.

How Macy’s is reinvesting for growth in specialty formats

As Macy’s contracts its store network, it is also expanding in higher-growth retail formats. The company plans to open 30 new Bluemercury locations and 15 Bloomingdale’s stores by the end of 2026. Smaller-format Macy’s stores are also a major focus, with 30 openings planned in off-mall locations that offer lower operating costs and stronger customer engagement.

Macy’s will reinvest between $600 million and $700 million, partially funded by the savings from store closures. These funds will also support renovations at 350 existing locations. Upgrades will emphasize product curation, store design, and omnichannel integration. According to CEO Tony Spring, “This transformation is about aligning our assets with where customers are shopping and how they want to shop.”

Revenue pressure and the urgency behind transformation

The closures follow a 2.4 percent year-over-year revenue decline in Macy’s most recent fiscal quarter, with sales totaling approximately $4.7 billion. Profitability has been impacted by increased operational costs and underperforming store formats.

Digital sales remain resilient, but physical store performance has continued to lag in certain locations. By streamlining its portfolio, Macy’s hopes to unlock operational efficiencies and redirect capital to innovation-focused areas.

Sources:

• The US Sun
• Finance Buzz