Walk into a Macy’s today and you might feel a weird mix of nostalgia and anxiety. That perfume-heavy air and the clacking of shoes on polished tile still feel like 1995, but the "Clearance" signs and empty racks in certain corners tell a different story. People keep asking if the department store is dead. It’s not. But it is shrinking—fast.
The headlines are everywhere. 150 stores. Gone. By 2026.
It sounds like a funeral. Honestly, though, if you look at the numbers and the strategy behind the Macy's store closures, it’s more like a massive, painful organ transplant. Tony Spring, the CEO who took over from Jeff Gennette, isn't just closing doors because they’re broke; he’s doing it because the "big box" mall model is bleeding out. They’re calling it "A Bold New Chapter." Corporate speak, sure. But for the people in places like San Francisco’s Union Square or suburban malls in the Midwest, it’s a local crisis.
Why the Macy's Store Closures Aren't Just About Amazon
We love to blame Jeff Bezos for everything. It’s easy. But Amazon didn't kill the Macy’s at your local mall—demographics and neglect did.
You've probably noticed it yourself. The "good" Macy’s, the ones in high-end areas like Herald Square or South Coast Plaza, are thriving. They’re shiny. They have the staff. But the "C-grade" malls? Those have been crumbling for a decade. Macy’s finally admitted that these 150 underperforming locations accounted for about 25% of their total square footage but only brought in 10% of their sales. That’s a math problem that only has one solution.
The company is basically cutting off its tail to save its head.
The Real Estate Chess Game
What’s wild is that Macy’s is actually one of the biggest real estate holders in America. Sometimes, the land the store sits on is worth more than the clothes inside it. Activist investors like Arkhouse Management and Brigade Capital Management have been breathing down Macy's neck for a year, trying to take the company private. Why? Because they want that real estate.
When a store closes, it’s not just about losing a place to buy Levi’s. It’s a massive hole in a mall’s ecosystem. When the anchor tenant leaves, the foot traffic drops. Then the Sbarro closes. Then the Spencer's Gifts closes. It’s a domino effect that guts local tax bases.
The "Small Store" Pivot Nobody is Talking About
Here is the twist: while Macy's is closing 150 massive, multi-story behemoths, they are opening dozens of tiny ones. They call them "Bloomie’s" or "Macy’s Backstage" or just small-format Macy’s.
They’re moving out of the mall.
📖 Related: Do the IRS update on the weekend: What most people get wrong about refund tracking
Think about how you shop now. Do you really want to park in a five-story garage, walk through a sea of asphalt, and hike through three floors of kitchenware just to buy one pair of socks? Probably not. You want to pull up to a strip center, walk in, grab what you need, and leave. Macy’s is trying to follow us to the suburbs. These smaller stores are roughly 30,000 to 50,000 square feet—about a fifth of the size of a traditional department store.
It’s smarter. It’s cheaper to run. But is it still "Macy's"? That’s the gamble.
Luxury is the Life Raft
The most interesting part of this restructuring is where the money is going. While the core Macy’s brand is being pruned, their luxury wings—Bloomingdale’s and Bluemercury—are actually expanding.
It turns out wealthy people still like shopping in person.
The plan involves opening at least 15 new Bloomingdale’s stores and 30 new Bluemercury locations. They’ve realized that the middle class is being squeezed out of the department store experience, so they’re pivoting to where the "disposable income" lives. If you’re a regular Macy’s shopper, this might feel like a betrayal. If you’re a shareholder, it looks like a lifeline.
The San Francisco Symptom
If you want to see the Macy's store closures impact in real-time, look at San Francisco. The Union Square flagship closure announcement felt like a gut punch to the city. It’s a massive building. It’s an institution. But with the rise of remote work and the "urban doom loop" narrative, the foot traffic just isn't there.
Wait.
Actually, the San Francisco story is more complex. Macy’s isn't just leaving because of "crime" or "vagrancy," which are the usual talking points. They’re leaving because the cost of maintaining an aging, 400,000-square-foot building in a high-tax environment doesn't make sense when people are buying their Clinique moisturizer on an app.
What Happens to the Employees?
This is the part that sucks. We talk about "liquidity" and "operational efficiency," but we’re talking about thousands of people losing jobs. Macy’s has said they try to relocate employees to nearby stores, but when you’re closing 150 locations, "nearby" gets a lot further away.
The retail labor market is weird right now. There are plenty of jobs, but they don't pay like the old unionized department store gigs used to.
How to Shop During the "Great Liquidation"
If your local store is on the list, you’re probably looking for deals. But don't expect a 90% off sale the day after the announcement. These closures are staggered through 2026.
- Watch the Inventory: In the first phase, they often move the "good" stuff (high-end brands, new season stock) to the stores that are staying open. What’s left for the liquidation sales is often the "back of the house" stuff or lower-tier brands.
- The Fixture Sales: Towards the very end, you can actually buy the mannequins, the shelving, and the racks. If you’re a small business owner or a weirdly dedicated collector, that’s the time to strike.
- Returns Get Messy: Once a store starts its final "going out of business" phase, returns usually stop. If you buy it at a closing Macy's, you own it forever.
The Long-Term Outlook
Is this the end of the department store? Not yet. But the era of the "everything for everyone" store is over.
Macy’s is trying to become a "curated" experience. They want to be the place you go for a specific gift or a high-end beauty product, not just a place you wander around in on a rainy Tuesday. It’s a risky move. If they cut too much, they lose their identity. If they don't cut enough, they go the way of Sears and Bon-Ton.
The 350 "non-closing" stores are getting a facelift. New paint, better lighting, more staff on the floor. The idea is that by having fewer stores, they can actually make the remaining ones worth visiting. It’s a "quality over quantity" play that is about a decade overdue.
Actionable Steps for the Transition
If you're a regular shopper or someone affected by these shifts, here is how you navigate the new retail landscape:
- Audit Your Loyalty Points: If your local store is closing, don’t let your Star Rewards sit. Use them online or at a nearby location before you forget they exist. Digital accounts stay active, but the psychological "out of sight, out of mind" is real.
- Check the Store Locator Semi-Annually: Macy's hasn't released the full list of all 150 stores at once; they are doing it in waves. Don't assume your store is safe just because it survived the 2024 round.
- Shift to the App for Niche Items: As physical stores get smaller, their in-stock variety will drop. Get comfortable with the "Buy Online, Pick Up In Store" (BOPIS) model. It’s the only way they can compete with the convenience of smaller retailers.
- Keep Your Receipts Digitally: With stores closing, you can't just walk back into your local branch to dispute a charge or find a transaction record. Use the Macy’s app to track every purchase so you have a paper trail that isn't tied to a physical building.
The Macy's store closures are a massive correction for a company that stayed too big for too long. It’s painful for malls and employees, but for the brand to survive until 2030, the fat had to be rendered. Whether a smaller, leaner Macy's can still capture the "magic" of the old department store remains to be seen.