Macy’s has announced its latest round of store closures as part of its ongoing turnaround strategy, revealing 14 additional locations across 12 states that will shut their doors. The closures represent a continuation of the department store chain’s “Bold New Chapter” plan, which aims to close approximately 150 underperforming stores by 2026. These store closures come as the retail landscape continues to evolve, with premium malls experiencing growth while lower-tier shopping centers struggle to maintain foot traffic.
According to CEO Tony Spring in an open letter shared in January, the company remains focused on strengthening its stores, simplifying operations, and investing in customer experiences. He acknowledged that closing underproductive stores and streamlining operations are difficult but necessary decisions. The 14 stores slated for closure include locations in California, Georgia, Maryland, Michigan, Minnesota, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Texas, and Washington, according to USA Today.
Understanding the Macy’s Store Closures Strategy
The Macy’s store closures are part of a broader industry trend affecting department stores nationwide. However, the company’s strategy reflects a careful approach to resource allocation rather than wholesale retreat. Spring emphasized that these decisions are guided by what customers value most and are not made lightly.
The stores set to close represent about a quarter of gross square footage from 2023 but account for less than 10% of sales, according to Spring’s comments during the company’s fourth-quarter 2023 earnings call. Meanwhile, the remaining 350 Macy’s locations outperformed non-go-forward locations by 500 basis points in comparable-store sales and by 950 basis points in four-wall adjusted EBITDA rate.
Mall Performance and Retail Real Estate Trends
The retail environment has shifted significantly in recent years, challenging traditional assumptions about shopping centers. According to Placer.ai’s December 2025 Mall Index, indoor malls outperformed both open-air centers and outlet malls on a full-year basis, posting visit gains during all four quarters with overall growth of 1.3% for the full year.
However, not all malls are experiencing equal success. Chris Conlon, CEO of WPG (formerly Washington Prime Group), told Retail Dive that A-grade malls are performing extremely well while C and D malls are accelerating toward extinction. This disparity explains why retailers like Macy’s must be selective about their locations.
Expert Opinions on Macy’s Turnaround Plan
Industry analysts have mixed views on the effectiveness of the Macy’s store closures and overall strategy. GlobalData Managing Director Neil Saunders offered sharp criticism, stating on RetailWire that Macy’s needs deep cuts because the business has been neglected for years. He argued that the company failed to invest in shops, evolve its proposition, respond to competition, and prune its real estate portfolio.
In contrast, retail expert and RetailWire Brain Trust member Lisa Goller views the changes more favorably. She posted that Macy’s is smart to rightsize by closing underperforming stores, upgrading remaining locations, and investing in small, off-mall locations as resource allocation needs evolve with changing times.
Additionally, Patricia Vekich Waldron, a retail marketing expert with decades of experience, expressed skepticism about the turnaround prospects. She shared concerns about having confidence in Macy’s ability to reverse course, particularly given that CEO Tony Spring is a lifelong Macy’s career executive who was in place during previous initiatives.
The company has already closed 66 struggling locations as part of its turnaround plan, according to a press release. Macy’s continues to evaluate its portfolio and make decisions about where and how to invest resources as the retail landscape undergoes transformation.
The timeline for remaining closures under the “Bold New Chapter” plan extends through 2026, though specific dates for individual store shutdowns have not been fully disclosed. The company is expected to provide further updates as it progresses through its restructuring strategy.
