The era of the "everything store" is dying a slow, painful death. If you've walked through a suburban mall lately, you’ve seen the ghosts of retail past. Empty storefronts. Flickering neon. It feels a bit like a movie set for a post-apocalyptic thriller. So, when the news broke about Macy’s to close stores—specifically 150 of them over the next couple of years—it wasn't exactly a shock to the system. But it is a massive deal for the American landscape.
We're talking about roughly a third of their fleet. Gone. Just like that.
But here’s the thing people keep missing: this isn’t a bankruptcy white flag. It’s a pivot. Tony Spring, the CEO who took over from Jeff Gennette, is basically trying to prune a dying tree so the rest of it can actually grow. It's aggressive. It's risky. And honestly, it’s probably about five years overdue.
What’s Actually Happening with the "A Bold New Chapter" Plan?
Macy’s is calling this strategy "A Bold New Chapter." Corporate speak, right? Basically, they looked at their spreadsheets and realized that about 25% of their square footage was only bringing in 10% of their sales. That is a nightmare for any business. You can’t keep paying the lights and the heating on a massive building in a town where everyone is buying their towels on Amazon or at the TJ Maxx down the street.
The plan involves shutting down these "underproductive" locations by 2026. By the end of this year alone, we're looking at about 50 stores hitting the chopping block.
If you live in a major city, you're probably safe. They are keeping the "iconic" spots. The flagship stores like Herald Square in New York or Union Square in San Francisco (though even that one has been a topic of heated debate lately) are the crown jewels. They want to focus on what they call "First-Class" malls. If a mall is thriving, Macy's stays. If the mall is one of those "zombie malls" where the only thing left is a psychic and a pretzel stand? Macy's is out.
Why Macy’s to Close Stores Makes Sense for Luxury
Here is the twist that most people aren't talking about. While Macy's is shrinking its namesake brand, it is actually expanding its luxury wings. Bloomie’s and Bluemercury are the real MVPs here.
- Bloomingdale’s is growing. They plan to open about 15 new high-end Bloomingdale’s stores.
- Bluemercury is a goldmine. They are looking at 30 new stores and 30 remodeled ones for their skincare and beauty brand.
It turns out that wealthy people still like shopping in person. They want the experience. They want to smell the perfume and try on the $400 shoes. The middle-market consumer—the person who used to go to Macy’s for a mid-range toaster or a pair of Levi’s—has migrated. They’ve gone to Target for the basics or Nordstrom Rack for the deals. Macy’s got stuck in the "mushy middle." It wasn't cheap enough to be a bargain, and it wasn't fancy enough to be a destination.
✨ Don't miss: Tim Armstrong AOL CEO: What Really Happened Behind the Scenes
By closing the underperforming Macy's locations, they can dump that saved cash into making Bloomingdale’s even more elite. It's a "quality over quantity" play that Wall Street seems to actually like for once.
The Human Cost of a Retail Pullback
Numbers are easy to talk about, but the reality on the ground is messier. When we see Macy’s to close stores, we’re seeing thousands of jobs in limbo. Macy’s has said they try to relocate employees whenever possible, but let’s be real—if you’re a floor manager in a town where the nearest remaining Macy’s is two hours away, that’s not a "relocation." That’s a layoff.
There’s also the "anchor tenant" effect. When Macy’s leaves a mall, it’s usually the beginning of the end for the smaller shops inside. The mall loses its gravity. The foot traffic drops. Suddenly, the local coffee shop or the independent jewelry kiosk can't pay rent. It’s a domino effect that guts local tax bases.
I’ve seen this happen in real-time in places like the Midwest. A Macy's closes, and three years later, the whole mall is a parking lot for Amazon delivery vans. It’s the circle of retail life, sure, but it’s a tough pill for these communities to swallow.
The Tech and Small-Format Pivot
Macy’s isn't just closing doors; they are changing the shape of the doors. Have you seen the "Market by Macy’s" concept? They are much smaller. They aren't in malls. They are in "strip centers" next to your local grocery store or a Starbucks.
The idea is simple: nobody wants to spend three hours wandering a five-story building anymore. We’re busy. We’re tired. We want to park right in front of the store, run in, grab a specific dress we saw online, and leave.
- Smaller footprint: These stores are roughly 1/5th the size of a traditional department store.
- Curated Inventory: They don't stock everything. They stock what people in that specific ZIP code actually buy.
- Efficiency: It's cheaper to staff and cheaper to clean.
This is where the industry is going. Even IKEA is doing it. If Macy's can successfully transition from "giant mall anchor" to "convenient neighborhood boutique," they might actually survive the 2030s.
Is This Enough to Stop the "Retail Apocalypse"?
The term "retail apocalypse" is a bit dramatic, but for department stores, it’s pretty accurate. In the 1980s and 90s, Macy's was the king. They gobbled up regional brands like Marshall Field's, Kaufmann’s, and Hecht’s. They became a monolith.
But being a monolith makes you slow.
Retail analysts like those at GlobalData Retail have pointed out that Macy's spent years being "boring." The stores felt cluttered. The lighting was bad. The websites were clunky. While they were trying to figure out their identity, brands like Lululemon and Sephora were stealing their customers by offering a specific vibe.
The decision for Macy’s to close stores is an admission that being everywhere isn't a strength anymore. It’s a liability.
Investors like Arkhouse Management and Brigade Capital Management have even tried to take the company private because they think the real estate—the actual land the stores sit on—is worth more than the retail business itself. That’s a grim thought. When your buildings are worth more than your brand, you’re in trouble. Tony Spring’s job is to prove that the brand still has a pulse.
What This Means for Your Shopping Habits
If you’re a loyal Macy’s shopper, you’re going to notice a few things. First, your local store might be having a massive "everything must go" sale soon. If it is, grab the high-end stuff—kitchen appliances, designer bedding, furniture. That’s where the value is.
Second, expect the remaining stores to look a lot better. They are promising "refreshed" environments. That usually means more mannequins, better lighting, and more staff on the floor. They are trying to make it feel like an "event" again.
Honestly, it’s a "wait and see" situation. Retail history is littered with companies that tried to "shrink to greatness." Sears tried it. Kmart tried it. Most of the time, it’s just a managed decline. But Macy’s has one thing those others didn’t: a massive, profitable luxury business and a beauty brand that people actually love.
Practical Steps for the Savvy Consumer
Since the landscape is shifting so fast, you need to be smart about how you interact with these legacy brands. Don't get caught with a gift card for a store that’s about to vanish, and don't assume your local mall will be there forever.
- Check the Store Locator Frequently: Before you drive 30 minutes, check the official Macy's site. They are updating the "permanent closure" list in waves.
- Use Your Rewards Now: If you have Star Rewards, use them. While the company isn't going bankrupt today, the logistics of using rewards points get weird when your local branch disappears.
- Look for the Liquidation Sales: Usually, when a store is slated to close, the deep discounts (40-70% off) don't start until the final 8-12 weeks. Keep an eye on local news for those specific dates.
- Pivot to the App: Macy's is pouring a ton of money into their digital experience. If your local store closes, the app is going to be your only link to their exclusive brands like Hotel Collection or Alfani.
This isn't just about a store closing; it’s about a total shift in how we live our lives. We don't "go to the mall" as a hobby anymore. We shop with intent. Macy’s is finally realizing that they can't be everything to everyone. They have to be something specific to someone who is willing to pay for it. Whether that's enough to keep the red star shining remains to be seen.
Key Takeaway: The massive wave of store closures is a strategic retreat. By cutting 150 underperforming locations, Macy's is betting everything on luxury (Bloomingdale’s) and high-end beauty (Bluemercury). For the average shopper, this means fewer mall trips and a bigger shift toward small-format, neighborhood stores and digital shopping. Keep an eye on your local headlines; the next two years will redefine what's left of the American department store.
✨ Don't miss: New York City Pension: What Most People Get Wrong
Next Steps for You:
- Audit your gift cards. Check your junk drawer for any Macy’s or Bloomingdale’s cards and plan a trip or an online order within the next 90 days.
- Verify your local store status. Visit the Macy's store directory to see if your primary location is part of the first 50 closures scheduled for this fiscal year.
- Download the app. If you rely on Macy’s for specific home brands, familiarize yourself with their shipping and return policies now, as in-person returns will become much harder if your local anchor store shuts down.