Macy’s Inc has initiated a fresh wave of store closures across 12 states, marking a decisive step in its ‘A Bold New Chapter’ restructuring strategy. As of January 9, 2026, the retail giant confirmed 14 underperforming locations will begin liquidation sales, with most expected to shutter by the end of the first quarter. This contraction is part of a broader objective to decommission approximately 150 legacy department stores by 2027 to redirect capital toward higher-margin nameplates.
Strategic capital realignment
The downsizing reflects a fundamental transition in the group's revenue model. While total net sales for the namesake brand dipped 2.3 per cent in the latest fiscal report, the company's ‘Reimagine 125’ locations - optimized stores with elevated merchandising - saw comparable sales grow by 2.7 per cent. Management is increasingly prioritizing its luxury banners; Bloomingdale’s recently posted a 9 per cent growth in comparable sales, its strongest performance in over three years. By shedding underproductive square footage, Macy’s aims to fund 15 new Bloomingdale’s locations and 30 Bluemercury doors.
Navigating retail volatility
Retail analysts note, the consolidation comes as digital transactions now influence nearly 50 per cent of discretionary apparel purchases. Tony Spring, CEO emphasized, these targeted adjustments are essential for maintaining the firm's $2.4 billion liquidity cushion. Despite the closures, Macy's reported a narrowed adjusted net income of $26 million for Q3 2025, signaling that the leaner operational footprint is beginning to stabilize the balance sheet against a softening holiday market.
Macy’s Inc operates approximately 450 namesake stores, 60 Bloomingdale’s locations, and 170 Bluemercury specialty beauty shops. Founded in 1858, the New York-based retailer is currently converting from a traditional department store model to a luxury-and-digital-first enterprise. The company reported FY25 revenues of approximately $21.5 billion, focusing on high-growth urban hubs and omnichannel fulfillment.
