In a striking contradiction of headlines, Macy’s is simultaneously shuttering stores and celebrating its strongest sales performance in years. The retail giant has announced it will close 14 locations across 12 states this year, part of a 3-year plan to shutter approximately 150 underperforming stores. Yet while these closures will displace roughly 3,000 employees, CEO Tony Spring’s strategy is posting 2.7% comparable sales growth. Here is how this paradox is playing out.
Closures That Signal Control, Not Panic
Macy’s Inc. is executing one of retail’s boldest restructuring plans. Starting this year, 14 department store locations will permanently close across 12 states, displacing approximately 3,000 workers and advancing a 3-year consolidation to shutter roughly 150 underperforming stores by late this year. A January 8 memo confirmed the shift, but the timeline reveals something deeper.
The Strategy Behind “Bold New Chapter”
Tony Spring unveiled “Bold New Chapter” in February 2024 as a 3-year reinvention plan designed to fix years of underinvestment. It targets approximately 150 underproductive closures while investing heavily in roughly 350 go-forward locations. Spring, who previously led Bloomingdale’s, argued Macy’s had too many stores and a weakened customer experience. The closure list shows how targeted the plan really is.
Where The 14 Macy’s Stores Disappear
Fourteen Macy’s locations will close between now and mid-year across 12 states. California loses Grossmont Center in La Mesa and West Valley Mall in Tracy. New Jersey loses Livingston Mall in Livingston and Interstate Shopping Center in Ramsey. Single closures hit Atlanta, Glen Burnie, Grandville, Saint Cloud, Newington, Amherst, Raleigh, Tarentum, Corpus Christi, and Tukwila. The clearance timeline hints at the operational choreography.
The Bigger Math Behind The Downsizing
The 14 closures represent about 9% of the planned 150-store reduction. Macy’s closed 66 locations last year and shuttered 55 stores in 2024. With 14 more this year, Macy’s will have eliminated approximately 135 stores, roughly 90% of the target, ahead of schedule. The company expects about 350 Macy’s locations afterward, a 30% footprint reduction. But the human toll is harder to compress.
What 3,000 Displaced Workers Really Means
The 14 closures will displace approximately 3,000 employees across multiple states. Extrapolated to 150 closures, job losses could reach 23,400 to 44,850 workers. Macy’s says it will offer transfer opportunities where available, plus severance and outplacement services. The uncertainty lands in a sector where cashier wages average $27,174 annually, and schedules can be unstable. Spring’s own words sharpen the rationale.
“We Continue To Review Our Portfolio”
“In executing our strategy, we continue to review our portfolio and make careful decisions about where and how we invest, including closing underproductive stores and streamlining operations,” stated Tony Spring, chairman and CEO of Macy’s Inc., in a memo to employees on January 8, 2026. He frames closures as deliberate choices, not retreat. The key question becomes where Macy’s is putting the saved money, and how fast.
The “Reimagine” Stores Drive The Surprise
The biggest shift is happening inside 125 “Reimagine” stores getting concentrated investment. Macy’s has boosted staffing, improved lighting, upgraded merchandising, and refreshed inventory flow. In Q3 2025, these reimagined locations posted 2.7% comparable sales growth, the strongest quarterly performance in 13 quarters, outperforming the broader fleet. The first 50 revamped in 2024 produced positive sales 4 straight quarters. The earnings report shows how broad the lift became.
The Q3 2025 Numbers That Changed Tone
Macy’s Inc. reported Q3 2025 results that beat analyst expectations, with comparable sales up 2.5% owned basis and 3.2% including licensed and marketplace. Net sales were $4.7 billion, slightly under guidance, but still the best comparable sales performance in 13 quarters. Go-forward business rose 2.9% once adjusted for closures. Full-year guidance increased for net sales $21.4bn to $21.6bn and EPS $2.00 to $2.20. Yet the strongest growth sits in luxury.
Luxury Growth With A Broader Customer Base
Macy’s is repositioning as a multi-brand retailer where luxury and prestige categories support growth. Bluemercury has delivered 19 consecutive quarters of comparable sales growth, boosted by brands like Byredo, Victoria Beckham Beauty, and Charlotte Tilbury. The company says nearly half its customer base earns more than $100,000 annually, with Bloomingdale’s skewing higher. This upmarket tilt aims to offset shoppers drifting to discounters and specialists. However, luxury still depends on logistics getting sharper.
A $548 Million Bet On Faster Fulfillment
In October 2025, Macy’s opened a 1.4-million-square-foot automated fulfillment center in China Grove, North Carolina. The $548 million facility is its largest and most technologically advanced, built to improve e-commerce speed and accuracy across categories from apparel to toys. Once fully operational, it is expected to handle about 30% of digital supply chain capacity, reducing split shipments and improving delivery times. CFO Tom Edwards said it “expands our reach.” But margins face a different threat.
Turning Real Estate Into Turnaround Fuel
Macy’s plans to monetize $600 million to $750 million in real estate assets through 2026, largely tied to underperforming store closures. In 2025, property sale proceeds reached $150 million, with similar expectations ahead. The company says it is prioritizing value over speed, not rushing into discounted sales. CFO Tom Edwards said, “The strength of our balance sheet provides us with the patience and flexibility to ensure we are achieving the best value.” The turnaround narrative also depends on outsiders noticing improvements.
Private Brands Become A Margin Weapon
Macy’s is rebuilding private brands to lift penetration from 16% of sales in fiscal 2022 toward historical levels near 20%. It launched On 34th, a women’s label with 750 SKUs priced from $18.50 to $299.50, marketed around “quality, style and value.” Macy’s says it ran 100,000+ customer surveys and hundreds of hours of fit research to refine standards. Four more private brands are planned through 2025, alongside 25+ existing lines. Still, stores must work with digital, not against it.
Wall Street Still Prices In Execution Risk
Despite better operations, Macy’s valuation remains low. The stock trades at a forward price-to-sales ratio of 0.22X, below the industry average of 0.46X, reflecting skepticism about durability. Zacks estimates imply a 30.3% earnings decline in fiscal 2025, followed by only a 0.7% decline in 2026. Shares rose 53% over the past year, narrowing gaps, but risks persist from tariffs, consumer spending weakness, and inconsistent store execution. The department store sector shows why that caution lingers.
A Smaller Macy’s With A Different Mission
After Bold New Chapter, Macy’s expects about 350 department stores, down from roughly 500 today. The portfolio will include more “Reimagine” stores, plus about 30 smaller-format locations under test. Beyond Macy’s, the company will keep 32 Bloomingdale’s stores, 25 Bloomingdale’s outlets, 4 Bloomie’s small-format concepts, and 174 Bluemercury locations. This is meant to replace an overlapping network with a curated one focused on experience and premium assortments. The final question is whether momentum survives the next stretch.
Momentum Builds, But The Next 24 Months Decide
By late 2026, Macy’s expects to have completed about 90% of its planned 150-store closures, cutting about 30% of its footprint while strengthening remaining operations. Strongest sales in 13 quarters, raised guidance, and fast-growing luxury banners support the case that Spring’s strategy is working. Yet tariffs, consumer softness, and the need for consistent execution across 125 reimagined stores remain real threats. If the next 24 months match current metrics, Macy’s could emerge leaner and more profitable. The direction has changed, but the outcome is not guaranteed.
Sources
Macy’s Inc. Confirms Planned Macy’s Store Closures. Macy’s Inc., January 8, 2026
Macy’s Inc. Reports Third Quarter 2025 Results. Macy’s Inc., December 3, 2025
Macy’s Inc. Announces “A Bold New Chapter.” Macy’s Inc., February 27, 2024
Macy’s targets another 14 stores for closure. Retail Dive, January 8, 2026
Can Macy’s win back America? How CEO Tony Spring is moving… Fortune, October 18, 2025