What Happened to Macy's 'Bold New Chapter' Strategy?

Macy's, Inc. embarked on its 'Bold New Chapter' strategy on February 27, 2024, under the leadership of CEO Tony Spring, building upon its earlier 'Polaris' strategy launched in February 2020. The 'Polaris' strategy initially aimed to stabilize profitability, accelerate digital growth, optimize the store portfolio by closing 125 stores over three years, and expand off-price formats like Macy's Backstage and 'Market by Macy's'.

The 'Bold New Chapter' represents a more aggressive repositioning, designed to return Macy's, Inc. to enterprise growth by challenging the status quo and focusing on three core strategic priorities: strengthening the Macy's nameplate, accelerating luxury growth, and simplifying and modernizing end-to-end operations.

Strengthening the Macy's Nameplate: This pillar involves revitalizing the product assortment for relevance and value, modernizing the shopping environment for a frictionless customer experience across channels, and strategically focusing resources. A key component is the closure of approximately 150 underproductive Macy's locations by the end of fiscal year 2026, with about 50 closures by the end of 2024, 66 in 2025, and 14 planned for 2026. Concurrently, Macy's is prioritizing investment in approximately 350 'go-forward' locations, including the expansion of small-format stores. The company has invested in 'Reimagine' stores (initially 50, expanded to 125, and now approximately 200 locations), which have shown positive comparable sales growth and record Net Promoter Scores (NPS).

Accelerating Luxury Growth: Macy's is leveraging its strong position in the luxury market through its Bloomingdale's and Bluemercury brands. The strategy includes expanding the store footprint for Bloomingdale's with a projected 15 new stores and opening at least 30 new Bluemercury stores, along with roughly 30 remodels, by 2026. Both luxury brands have consistently outperformed, with Bloomingdale's achieving double-digit comparable sales growth and Bluemercury showing sustained growth over multiple quarters.

Simplifying and Modernizing End-to-End Operations: This priority focuses on rationalizing and monetizing the supply chain asset portfolio, streamlining fulfillment, improving inventory planning, and implementing a scalable technology platform. Macy's is investing in digital platforms, advanced analytics, and exploring AI for personalization, demand planning, and supply chain optimization to enhance both online and in-store experiences.

Current Status (as of 2026-09-11): The 'Bold New Chapter' strategy is showing tangible results. Macy's reported strong second-quarter fiscal 2026 results on September 10, 2026, with net sales increasing 1.1% year-over-year to $4.9 billion and comparable sales rising 2.7% across the portfolio, marking the fifth consecutive quarter of comparable sales gains. Bloomingdale's comparable sales jumped 11.3%, achieving its highest second-quarter sales volume in its history, and Bluemercury grew 6.2%. The company has raised its full-year 2026 guidance for net sales to $21.675-$21.825 billion and comparable sales to 1%-1.5%, reflecting confidence in the strategy and the benefits of tariff refunds. Investments in 'Reimagine' stores continue to drive positive performance, with these locations outperforming the rest of the Macy's fleet. Macy's has also received $116 million in tariff refunds, with $96 million being reinvested into the strategy in 2026.