Macy’s to Close 65 Stores in Accelerated Restructuring Plan

Macy’s Expands Store Closure Plans, Set to Shutter 65 Locations

Macy’s is on track to close more stores than initially anticipated this year, with plans to shut down 65 locations by the end of the fiscal year. This is an increase from the 50 stores the company had originally slated for closure earlier in the year.

CEO Tony Spring shared during the company’s third quarter earnings call that the closures, which are expected to occur post-holiday season, are part of Macy’s broader strategy to revitalize its business. In February, the retail giant announced intentions to shut down 150 “unproductive” stores by 2026, representing approximately 30% of its total store count, while focusing on investing in 350 “go-forward” locations.

The move, known as “A Bold New Chapter,” is aimed at modernizing Macy’s and enhancing customer relationships by offering improved shopping experiences, relevant product assortments, and compelling value.

Despite the store closures, Macy’s is also looking to expand its luxury brands, Bloomingdale’s and Bluemercury. The company has plans to open approximately 15 new Bloomingdale’s stores and at least 30 additional Bluemercury locations over the next three years. Additionally, 30 Bluemercury stores are set to undergo remodeling.

In the third quarter, Macy’s has already remodeled five Bluemercury stores and opened nine new locations as part of its growth strategy. The company is committed to investing in chosen areas of the business while optimizing its store footprint to align with changing consumer preferences.

The company’s recent third quarter earnings report addressed concerns related to a former employee who allegedly hid millions of dollars in delivery expenses over several years. Following an independent investigation, Macy’s confirmed that there was no material impact on its financial performance as a result of the incident. The employee in question is no longer with the company, and there is no evidence of other employees being involved in the misconduct.

Overall, Macy’s is focused on streamlining its operations, enhancing customer experiences, and driving growth in key areas of its business as it navigates the evolving retail landscape.