What Happened to Macy's Store Closures?

Macy's, a venerable American department store, has been navigating a challenging retail landscape for several years, leading to a series of strategic store closures aimed at streamlining its operations and returning to sustainable profitability. The initial significant wave of closures was part of the 'Polaris' strategy, announced in February 2020, which planned to shutter approximately 125 stores over three years. This early initiative sought to optimize the store portfolio, strengthen customer relationships, and accelerate digital growth.

The most impactful phase of store rationalization began with the 'Bold New Chapter' strategy, unveiled in February 2024 under CEO Tony Spring. This ambitious plan outlined the closure of approximately 150 'underproductive' Macy's stores by the end of fiscal year 2026, while simultaneously investing in 350 'go-forward' locations and expanding its luxury brands, Bloomingdale's and Bluemercury. The strategy also included significant investments in enhancing customer experience, revitalizing merchandise assortments, and modernizing the shopping environment.

In 2024, Macy's closed five stores, followed by a more substantial wave of 66 closures in 2025 across various states. These closures were part of a broader industry trend where traditional mall-based retailers struggled against e-commerce and shifting consumer preferences. Macy's aimed to divest from underperforming assets to free up capital for reinvestment in more profitable ventures.

As of early 2026, Macy's confirmed another round of 14 store closures, primarily in the first fiscal quarter. The first of these, the Pittsburgh Mills Mall location in Tarentum, Pennsylvania, was set to close on April 26, 2026. However, a pivotal announcement in March 2026 revealed a strategic shift: Macy's decided to delay the completion of its 150-store reduction plan, extending the timeline to 2028. This revised schedule allows the company more flexibility to time property sales for higher returns, with expected real estate sales generating up to $700 million, exceeding earlier projections.

The rationale behind this delay stems from Macy's improved financial position and positive sales growth, particularly in its 125 'Reimagine' stores, which saw a 2.7% year-over-year sales increase in Q3 2025. The company reported a strong Q4 2025 earnings beat in March 2026, with adjusted diluted EPS reaching $1.67 and comparable sales turning positive for the first time in years, growing 1.5% year-over-year. For fiscal year 2026, Macy's projects net sales between $21.4 billion and $21.65 billion, with comparable sales expected to be roughly flat to slightly positive. The company is also expanding its luxury footprint with plans for 15 new Bloomingdale's stores and 30 Bluemercury locations by 2026.

As of May 6, 2026, Macy's continues to execute its 'Bold New Chapter' strategy, balancing store closures with strategic investments. The focus remains on optimizing its physical footprint, enhancing digital capabilities, and leveraging its luxury brands to drive long-term profitable growth, albeit with a more extended timeline for store portfolio rationalization.