It's weird seeing those massive "Going Out of Business" banners hanging over a place where you used to buy your prom shoes or your first "grown-up" kitchen mixer. But it's happening. Again. If you've been following the retail world lately, the news that Macy's to close stores isn't exactly a shocker, but the scale of the "A Bold New Chapter" strategy is definitely turning heads. We aren't just talking about a couple of underperforming locations in dying malls. This is a massive, systemic pruning of a retail empire that once seemed untouchable.
Honestly, the traditional department store model is fighting for its life.
Tony Spring, the CEO who took the reins from Jeff Gennette, isn't playing around. He’s essentially acknowledged that Macy’s simply got too big for its own good in a world where everyone buys socks from their couch. By the end of 2026, the company plans to shutter roughly 150 stores. That is nearly a third of its entire footprint. If you feel like your local mall is looking a bit ghost-townish, this is why.
The Strategy Behind the Scarcity
Why is this happening now? It’s not just "Amazon did it." That's a lazy answer. The reality is that Macy's is focusing on what they call "First-Class" locations. They've realized that out of their roughly 500 stores, about 350 of them are actually productive and profitable. The other 150? They were dragging the whole ship down. By cutting the dead weight, the company can dump money back into the stores that people actually visit.
Think about it this way.
Macy’s is basically moving away from being a "middle-of-the-road" department store and leaning into luxury. While the name-brand Macy's stores are shrinking, they are actually expanding their high-end banners. We’re talking about Bloomingdale’s and Bluemercury. These brands have been the quiet MVPs of the company’s portfolio. Wealthy shoppers are still spending, even when inflation makes the rest of us rethink that $80 sweater.
The math is pretty cold. These 150 closing stores represented about 25% of the company's total square footage, but they only accounted for less than 10% of its sales. When you see those numbers, you realize this isn't a tragedy for the company—it's a massive, overdue spring cleaning.
What Happens to Your Local Mall?
This is where things get kinda messy for the rest of us. When Macy’s pulls out of a mall, it’s often an "anchor tenant." This means they have special leases and their presence is what keeps the smaller shops like Auntie Anne’s or the local jeweler afloat. When the anchor leaves, the foot traffic vanishes.
We’ve seen this movie before with Sears and JCPenney.
Some malls are getting creative. They’re turning old Macy’s wings into luxury apartments, pickleball courts, or even medical offices. But let’s be real: for a lot of suburban towns, these closures mean a massive vacant building that stays empty for years. It changes the vibe of a community. You’ve probably noticed the parking lots getting emptier. It’s a physical manifestation of our shift to digital life.
The Rise of the Small Format Store
Interestingly, while the giant mall stores are dying, Macy’s is actually opening smaller stores. They call them "Market by Macy’s." They’re off-mall, usually in those busy shopping centers next to a Whole Foods or a Nordstrom Rack. They’re easier to get into, easier to shop, and—crucially—cheaper for the company to run. They’re betting that you’d rather pop into a small boutique-style shop than hike through a three-story labyrinth of perfumes and mannequins.
It's a smarter play.
You get in, you grab your Clinique moisturizer or a new pair of Levi's, and you're out in fifteen minutes. No one has time for a three-hour mall trek anymore.
The Financial Reality Check
Investors have been screaming for this for years. Activist investors like Arkhouse Management and Brigade Capital Management even tried to buy the whole company out recently. They argued that the real estate Macy’s sits on is actually worth more than the retail business itself. While Macy's rejected those buyout bids, the pressure clearly worked.
The company had to prove it could be more than just a real estate holding company that happens to sell clothes.
$2.3 billion.
That’s roughly what the company expects to gain from these asset sales and the resulting streamlined operations. They’re using that cash to renovate the remaining 350 stores. If you go into a "top-tier" Macy's in a city like New York or Chicago, it feels like a different planet compared to a struggling location in a rural mall. More staff, better lighting, and brands people actually want—like Nike and Under Armour—are the priority now.
Is This the End of the Department Store?
Not necessarily, but the version of the department store we grew up with is definitely dead.
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The "everything for everyone" approach failed.
Target does "cheap and chic" better. Amazon does "convenience" better. Specialist stores like Sephora do "beauty" better. Macy’s found itself stuck in a weird middle ground where it wasn't premium enough to be exclusive, but wasn't cheap enough to be a bargain. By closing these stores, they are picking a side. They are choosing to be a smaller, more profitable, slightly more upscale retailer.
They are also doubling down on their private labels. Brands like On 34th are designed to give shoppers something they can't find on Amazon. It's a gamble. If they can make their own brands "cool" again, they might just survive. If not, they’re just another name on the long list of retail history.
What You Should Do If Your Store is Closing
If your local Macy’s is on the list, there are a few practical things you should keep in mind. First off, don't expect the "Closing Sale" to be a goldmine on day one. Usually, they start with 10% or 20% off, which is often worse than the coupons you can find online. The real deals happen in the final two weeks, but by then, the selection is basically picked over.
- Use your gift cards. While the company isn't going bankrupt, it's always safer to spend that plastic money sooner rather than later.
- Check your returns. If a store is in its final weeks, they will often stop accepting returns at that location. You’ll have to mail them back or drive to the next town over.
- Watch the Star Rewards. Your points are still valid at other locations and online, but the "feel" of being a loyal customer disappears when your local spot turns into a Spirit Halloween.
- Look for fixtures. Seriously. If you’re a small business owner or just need a weird shelf, these stores often sell their racks and mannequins for pennies on the dollar during the final days.
The landscape is shifting.
Seeing Macy's to close stores is a reminder that even the biggest names have to adapt or disappear. We are moving toward a retail world that is either incredibly fast and digital or incredibly high-end and experiential. The boring middle is being erased.
Practical Steps for Shoppers and Investors
If you're an investor, keep a close eye on the quarterly earnings reports throughout 2025 and 2026. The success of this "Bold New Chapter" depends entirely on whether the sales from the closed stores actually migrate to the website or the remaining physical locations. If that "omnichannel" transition fails, the company will have to cut even deeper.
For the average shopper, the best move is to download the app. Macy’s is clearly prioritizing its digital experience over the physical "mall crawl." You’ll often find better inventory and specific "app-only" sales that the physical stores can't match.
The era of the sprawling suburban department store is winding down, but for Macy's, this smaller footprint might be the only way to ensure there's still a red star on the map ten years from now.
Keep an eye on the store locator on their official site. They update the "closing" list periodically, and often, the employees find out only a few weeks before the public does. It’s a tough transition for the thousands of workers affected, and it marks a definitive end to the 20th-century shopping experience.
The focus now is on 2026 and beyond. By then, the Macy's you know will likely be much smaller, much shinier, and probably a lot further from your house. It’s not necessarily a bad thing, it’s just different. The retail world doesn't stand still, and finally, Macy's has stopped trying to pretend that it does.