Macy's Announces Major Store Closure Plan

Macy's Announces Major Store Closures Amid Restructuring Efforts

March 27, 2025

New York, NY – Macy’s, one of America’s most iconic department store chains, has announced plans to close a significant number of locations as part of a broader restructuring strategy aimed at cutting costs and adapting to shifting consumer trends.

The retail giant revealed in a statement on Wednesday that approximately 150 underperforming stores will be shuttered over the next three years, with the first wave of closures expected by the end of 2025. The move comes as Macy’s seeks to refocus its business on high-performing locations, luxury offerings through its Bloomingdale’s and Bluemercury brands, and e-commerce growth.

Why Is Macy’s Closing Stores?

Like many traditional retailers, Macy’s has faced declining foot traffic in malls and increased competition from online retailers and discount chains. Despite efforts to revitalize its brand with smaller-format stores and exclusive merchandise, the company has struggled to maintain profitability across its vast physical footprint.

In a press release, Macy’s CEO Tony Spring emphasized that the closures are a necessary step to ensure long-term growth. 'While these decisions are never easy, they are essential to strengthening Macy’s, Inc.’s future,' Spring said. 'We are prioritizing investments in our most productive locations and digital platforms to better serve our customers.'

Impact on Employees and Communities

The closures are expected to affect thousands of employees, though Macy’s stated that some workers may be offered positions at nearby stores or distribution centers. The company also plans to provide severance packages and career transition support.

Local economies in cities where Macy’s has long been an anchor tenant could also feel the effects, particularly in struggling shopping malls. Some analysts warn that the closures may accelerate the decline of traditional retail spaces.

What’s Next for Macy’s?

The retailer’s strategy now hinges on expanding its premium brands, enhancing its online shopping experience, and investing in smaller, more flexible store formats in suburban areas. Earlier this year, Macy’s rejected a $5.8 billion takeover bid, signaling its commitment to an independent turnaround plan.

As the company moves forward, industry experts will be watching closely to see whether these cuts can revive the 166-year-old retailer in an increasingly digital shopping landscape.

For now, customers can expect clearance sales at affected locations, with more details on specific store closures expected in the coming months.

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