Iconic department store chain Macy’s has announced plans to close 66 stores across 22 states in 2025 as part of its “Bold New Chapter” strategic overhaul aimed at revitalizing its brand and adapting to changing retail landscapes. This move marks one of the largest restructurings in the company’s recent history, reflecting broader trends reshaping the department store industry.
Background: Retail Industry Challenges
Macy’s, founded in 1858, has been a staple in American retail for over 160 years. However, like many traditional department stores, it has faced mounting pressures from shifting consumer preferences, the rise of e-commerce, and changing shopping habits accelerated by the COVID-19 pandemic.
Malls, once the epicenters of retail activity, have seen declining foot traffic, prompting Macy’s and other retailers to rethink their physical store footprints. The company’s decision to close stores comes amid an industry-wide wave of closures, as retailers seek to balance cost-cutting with investments in digital growth and experiential retail.
Details of the Store Closures
The 66 stores targeted for closure are identified as “non-go-forward” locations, meaning they have underperformed or do not fit into Macy’s future growth plans. Many closures had already begun by mid-May 2025.
This downsizing is part of Macy’s broader plan to close approximately 150 stores over three years. Simultaneously, Macy’s will focus investments on approximately 350 “go-forward” stores that have shown positive sales growth and strong customer engagement.
Investments in Flagship and Expansion
In addition to closures, Macy’s plans to open new stores under its Bloomingdale’s and Bluemercury brands. Specifically, the company aims to launch about 15 new Bloomingdale’s stores and 30 new Bluemercury beauty stores. These openings target high-growth markets and seek to diversify Macy’s brand portfolio.
Moreover, Macy’s will continue remodeling existing stores to create more modern, experience-focused environments blending in-store and online shopping.
Digital and Omnichannel Strategy
Macy’s recognizes the importance of omnichannel retail—integrating online and physical store experiences. Investments in mobile shopping apps, curbside pickup, and personalized marketing are central to its strategy.
These efforts aim to meet consumer demand for convenience and flexibility, a crucial factor in retaining customer loyalty.
Economic and Community Impact
Store closures inevitably impact local economies and communities, affecting employment and retail diversity. Macy’s has pledged to provide support for affected employees, including severance and job placement assistance.
Retail analysts note that while closures are difficult, focusing on stronger locations and brands may position Macy’s for long-term sustainability.
Looking Forward
Macy’s strategic pivot reflects a wider transformation in American retail. Its success will depend on execution in both physical and digital arenas, maintaining brand relevance, and adapting to evolving consumer behaviors.
Industry watchers will closely monitor Macy’s performance as it balances contraction and expansion efforts.
Summary:
- Macy’s plans to close 66 underperforming stores across 22 states in 2025.
- Part of a broader plan to close 150 stores over three years.
- Focus shifts to investing in 350 “go-forward” stores and new openings under Bloomingdale’s and Bluemercury brands.
- Emphasis on omnichannel retail and digital innovation.
- Store closures impact communities; Macy’s offers employee support.
- Reflects wider retail industry changes amid evolving consumer preferences.
