Macy’s Confirms 66 Store Closures as Part of Bold New Chapter, Shifting Focus to 350 Go-Forward Stores

Macy’s Inc. has formalized the next phase of its Bold New Chapter, confirming the closure of 66 underperforming stores as part of a multi-year plan to reshape its retail footprint. The move aligns with a broader strategy unveiled earlier this year to exit roughly 150 low-performing locations over the next three years, freeing capital and focus for the remaining 350 “go-forward” stores through fiscal 2026. The closures underscore Macy’s intent to adapt to a retail landscape defined by shifting consumer habits, rising competition, and rising expectations for seamless shopping experiences across both physical and digital channels. By prioritizing its strongest locations and upgrading its digital backbone, the retailer aims to restore a sustainable path to profitable sales growth while delivering improved value and convenience to shoppers.

Bold New Chapter: Strategic rationale and execution plan

Macy’s Bold New Chapter represents a holistic realignment of the company’s portfolio, rooted in the belief that a smaller, stronger store network can yield higher returns than a larger, spread-too-thin footprint. The decision to close 66 stores is framed as a disciplined step within a three-year plan to retire underperforming sites and deploy capital toward locations that offer the greatest potential for sustained profitability and customer engagement. The overarching objective is not simply to shrink the footprint but to concentrate resources where they can drive more meaningful sales growth and stronger margins.

Central to the plan is the commitment to invest in the remaining 350 go-forward stores through fiscal 2026. This investment is designed to elevate the in-store experience, modernize the shopping environment, and ensure consistency of service and product availability across all high-potential locations. The move is also intended to align Macy’s with evolving consumer expectations, including faster, more convenient shopping options, richer product assortments, and an omnichannel experience that merges online and brick-and-mortar touchpoints seamlessly. The closure program is presented as a necessary step to reposition Macy’s for a more sustainable trajectory in an increasingly competitive retail market where consumers have abundant alternatives for how and where they shop.

A cornerstone of this strategy is the emphasis on prioritizing the most productive locations. Macy’s asserts that channeling resources toward these sites will yield tangible improvements in sales velocity, customer satisfaction, and operational efficiency. Early evidence comes from the First 50 pilot stores, which have delivered three consecutive quarters of sales growth and set new records for customer satisfaction. The pilot program has demonstrated that enhanced product assortments, upgraded services, and a modernized shopping environment can translate into measurable gains in shopper engagement and spend. Building on these results, Macy’s is extending similar upgrades to its go-forward locations to ensure a consistent, elevated customer experience across the country. The objective is to create a uniform standard of excellence that customers can expect whether they shop in-store or online.

In addition to physical store improvements, Macy’s is strengthening its digital capabilities to create a more cohesive connection between its physical footprint and its online platforms. The aim is to provide a seamless omnichannel experience that accommodates diverse consumer preferences, including those who prefer to browse and buy online, pick up in-store, or receive rapid home delivery. This digital enhancement is intended to complement the improved in-store environment, offering a unified brand experience that aligns with the expectations of today’s multi-channel shopper. The strategy also contemplates the long-term financial benefits of store rationalization, including potential cost savings from a more efficient real estate portfolio and more targeted capital allocation toward growth engines within the business.

Strengthening go-forward stores: Upgrades, consistency, and nationwide standards

A central pillar of Macy’s approach is the systematic upgrade of go-forward stores to deliver a consistent, elevated shopping experience across the brand. The company is rolling out a standardized program to refresh store layouts, product presentations, and service levels so that customers encounter a coherent brand experience regardless of location. This standardization is designed not only to improve the shopping atmosphere but also to optimize operational efficiency, reduce redundancy in inventory management, and streamline staff training and execution. The focus on consistency is intended to mitigate regional variations that can dilute brand perception and customer confidence.

Product assortment is a key lever in the transformation. Macy’s is refining its selection to prioritize high-demand categories, exclusive or differentiated merchandise, and brands that resonate with its target customer base. The goal is to provide a more compelling, needs-based shopping experience that reduces search friction and increases conversion rates. Enhanced services—such as personalized styling, improved sales associate expertise, and more flexible return policies—are also being introduced to differentiate Macy’s from other retailers and to reinforce customer loyalty. A modernized shopping environment includes updated visual merchandising, refreshed store interiors, and improved traffic flow to guide customers through the most profitable zones of the store.

In parallel with the physical upgrades, Macy’s is accelerating investments in digital tools and infrastructure to ensure a cohesive omnichannel proposition. The company is focusing on inventory visibility, seamless order orchestration, and frictionless cross-channel interactions. For example, customers may expect faster fulfillment, accurate online-to-offline stock information, and efficient pickup or return options that mirror the level of convenience offered by online-first retailers. The digital evolution is designed to support a unified customer journey from discovery to purchase, with real-time data informing merchandising decisions and store staffing aligned to demand patterns.

The combination of physical and digital enhancements is intended to create a durable competitive advantage in a retail environment characterized by rapid change. By aligning store design, product offerings, and service standards with a strengthened digital backbone, Macy’s aims to deliver an integrated, high-quality shopping experience that appeals to a broad customer base while maintaining rigorous cost discipline. The ultimate objective is to foster sustainable sales growth, improved profitability, and a resilient business model that can withstand the pressures of a dynamic retail market.

The First 50 pilots: Lessons learned and implications for go-forward stores

The First 50 pilot stores have functioned as a proving ground for the Bold New Chapter, generating valuable insights about what resonates with customers and how operational changes translate into financial performance. The pilots have achieved multiple positive outcomes, notably three consecutive quarters of sales growth and record levels of customer satisfaction. These metrics suggest that the combined efforts around product assortment, service quality, and store aesthetics are translating into tangible customer value and stronger purchasing intent.

In terms of execution, the pilots demonstrated that a customer-centric approach—emphasizing curated product selections, knowledgeable staff, and a refined store atmosphere—can drive higher basket sizes and increased frequency of visits. The enhanced service model included more attentive and accessible associates, better in-store product knowledge, and streamlined checkout processes. Store environments were modernized with updated fixtures, clearer signage, and more intuitive layouts that guided shoppers toward core offers and high-demand categories. The aim was not only to boost immediate sales but also to strengthen long-term customer relationships by delivering a reliable, enjoyable shopping experience.

The learnings from the pilots have informed a broader rollout strategy for go-forward locations. Macy’s intends to replicate the successful elements across all open stores, with adjustments made to accommodate regional preferences and local assortment needs. The plan emphasizes scalable improvements that can be implemented consistently while allowing for some degree of adaptation to local markets. The overarching message is that the pilot program validated the feasibility of the upgrade path and underscored the value of a carefully choreographed, data-informed store modernization effort.

Operationally, the pilots highlighted opportunities to optimize labor allocation, inventory management, and store services. For example, with improved product assortments and clearer merchandising, associates can focus more effectively on customer engagement rather than routine replenishment tasks during peak hours. The pilots also reinforced the importance of integrating in-store experiences with online capabilities, ensuring that customers who begin their journey online can easily complete it in-store, and vice versa. The net effect of these learnings is to create a more agile, customer-aligned retail operation that can scale the benefits observed in the pilot phase across the larger network of go-forward stores.

Omnichannel acceleration: Connecting stores and digital platforms

A defining feature of Macy’s strategic plan is the acceleration of omnichannel capabilities to create a seamless, integrated shopping journey. The company recognizes that shoppers increasingly expect a frictionless experience that blends online convenience with the tactile, immediate gratification of in-store shopping. To meet this demand, Macy’s is enhancing digital tooling to provide real-time product availability, robust search and recommendation features, and a streamlined checkout experience that extends across channels. The aim is to close the gap between the online and offline environments and to ensure that customers can transition between touchpoints without friction.

Key initiatives in this area include improving inventory accuracy and visibility across both e-commerce and physical stores, enabling more precise fulfillment options, and offering flexible delivery and pickup choices. The company is also investing in digital touchpoints that improve the in-store experience, such as mobile devices for associates to access product information, stock levels, and customer preferences in real time. By enabling staff to deliver personalized recommendations and faster service, Macy’s can enhance the perceived value of the shopping experience and increase customer loyalty.

A well-integrated omnichannel strategy also supports merchandising agility. With better data on consumer demand, Macy’s can respond more quickly to shifts in fashion trends, seasonal demand, and regional preferences. This agility improves merchandise planning, reduces markdown risk, and helps ensure that high-impact products are available where and when customers want them. The result is a synchronized approach in which in-store and online channels reinforce one another, delivering a cohesive brand experience that drives sustained engagement and higher annual sales growth.

Customer transition support: Transparency and accessibility during change

Macy’s acknowledges that closing stores presents real concerns for customers, employees, and communities. The company emphasizes a customer-first mindset and is implementing tools designed to keep shoppers informed and connected during the transition. A centralized Customer FAQ and a Store Locator on the company’s digital properties serve as primary resources for customers seeking information about go-forward stores, including locations, hours, services, and product availability. By providing clear, detailed information, Macy’s aims to minimize disruption and maintain a steady flow of traffic to its strongest stores.

Transparent communication is central to maintaining brand trust as the portfolio evolves. Macy’s highlights that the transition is driven by a long-term aim to deliver greater value and convenience to shoppers, rather than short-term cost reductions alone. The store closures are part of a broader restructure intended to enhance the customer experience both in physical locations and via digital platforms. The company’s approach to transition emphasizes reliability, consistency, and accessibility, ensuring that current customers can continue to rely on Macy’s even as the footprint changes.

From a customer service perspective, Macy’s is increasing emphasis on omnichannel support. The objective is to make it easier for customers to locate the nearest open store, check product availability, arrange for delivery or pickup, and access services such as styling consultations or alterations. This approach reinforces the perception that Macy’s is responsive to customer needs and committed to minimizing any negative impact from the portfolio adjustments. By supporting customers through the change, Macy’s aims to preserve loyalty, prevent churn, and encourage repeat visits across the remaining go-forward stores and the enhanced digital ecosystem.

Financial outlook and market positioning: Growth, profitability, and investor context

Looking ahead to 2025, Macy’s positions itself as a company with renewed momentum grounded in the Bold New Chapter deployment. The strategy is framed as a catalyst for sustainable sales growth by concentrating on high-performing stores, reinforcing digital platforms, and continually refining the shopping experience. By aligning resources with the most productive locations, the company seeks to improve capital efficiency and strengthen profitability over time. This approach also reflects an emphasis on operational excellence—streamlining processes, reducing inefficiencies, and prioritizing investments that deliver a measurable return.

Market sentiment around Macy’s has been cautious yet constructive as investors assess the potential upside from store rationalization and digital acceleration. In recent periods, the stock’s performance has shown modest gains that underscore a broader market context where investors reward disciplined capital allocation and clear strategic direction. The company’s positioning within the omnichannel retail space highlights Macy’s as a long-standing player with enduring brand recognition, while the Bold New Chapter represents a necessary adaptation to contemporary consumer behavior and a more competitive retail landscape.

From a financial perspective, the ongoing transition is expected to influence near-term earnings and cash flow in a way that reflects both the costs of store closures and the investments in go-forward locations and digital capabilities. Over the longer horizon, the anticipated effect is improved profitability driven by higher sales at optimized locations, more efficient store operations, and stronger cross-channel engagement. The strategy is designed to deliver a more resilient business profile that can navigate macroeconomic fluctuations and evolving consumer preferences, while sustaining a commitment to shareholder value and long-term growth.

In sum, Macy’s strategic plan signals a carefully calibrated evolution rather than a radical overhaul. By closing underperforming stores, reinvesting in core and high-potential locations, and accelerating digital enhancements, the company aims to build a more efficient, customer-centric retail platform. The combination of physical and digital improvements is intended to deliver a differentiated shopping experience that resonates with today’s multi-channel consumer, supports durable revenue growth, and strengthens Macy’s competitive standing in a dynamic retail ecosystem.

Competitive landscape, market dynamics, and Macy’s strategic positioning

In a retail environment characterized by intensifying competition and changing consumer behavior, Macy’s is seeking to distinguish itself through a thoughtful combination of footprint optimization and digital acceleration. The company acknowledges that customers today face abundant shopping options and expect a frictionless, personalized experience. Against this backdrop, Macy’s strategy focuses on empowering its strongest locations to drive growth while scaling back less productive assets. This approach is designed to protect brand equity, preserve merchandising quality, and maintain a robust, omnichannel platform that can compete with both traditional department stores and newer digital-first competitors.

The retail landscape continues to evolve as consumer preferences shift toward convenience, speed, and curated experiences. Department stores face pressure to differentiate through service quality, exclusive products, and a seamless integration of online and offline channels. Macy’s response—investing in high-potential stores, upgrading in-store experiences, and strengthening digital capabilities—positions the company to respond effectively to these trends. By aligning the physical footprint with digital strengths, Macy’s aims to deliver a coherent and compelling brand proposition that resonates with a broad demographic of shoppers.

Additionally, the performance momentum observed in the First 50 pilot stores provides a basis for confidence in the broader go-forward store program. Demonstrated improvements in sales growth and customer satisfaction reinforce the plausibility of achieving the strategic objectives across a larger network. The emphasis on consistent store standards, improved product assortments, and enhanced customer services is intended to create durable advantages that can withstand competitive pressures and macroeconomic uncertainties. In a world where consumer choices are abundant, Macy’s aims to offer a distinctive shopping experience that blends convenience, value, and curation in a way that competitors may find challenging to replicate.

Operational excellence, governance, and organizational culture

Underlying Macy’s store portfolio optimization is a commitment to operational excellence and disciplined governance. The company’s leadership emphasizes clear accountability for store performance, data-driven decision-making, and rigorous evaluation of investment opportunities. This governance approach supports the careful phasing of store closures and the allocation of capital toward the most productive assets and growth initiatives. The emphasis on transparency and consistency across the organization helps ensure that employees, customers, and stakeholders understand the rationale for strategic changes and the expected benefits over time.

Culturally, Macy’s aims to reinforce a customer-first mindset. This means prioritizing shopper needs, delivering reliable service, and maintaining open lines of communication with the communities in which Macy’s operates. The investment in redesigned stores and enhanced digital capabilities is paired with a focus on staff development, training, and empowerment so that associates can deliver superior service and knowledgeable guidance. A culture of continuous improvement supports ongoing refinement of merchandising, store operations, and cross-channel experiences, enabling Macy’s to respond quickly to market feedback and evolving consumer expectations.

The transformation also encompasses a commitment to sustainability and responsible real estate management. While not the primary driver of the program, considerations related to energy efficiency, store lifecycles, and community impact are integral to the broader plan. By pursuing a well-managed real estate strategy that aligns with corporate values and long-term profitability, Macy’s seeks to create value not only for shareholders but also for employees and customers who rely on the brand as a trusted retail partner.

Risks, challenges, and mitigation strategies

Despite the positive indicators associated with the Bold New Chapter, Macy’s faces a set of risks and challenges typical of a major retail realignment. Store closures inherently risk customer churn and potential revenue shortfalls in the near term, particularly if affected customers relocate or shift their shopping to competing channels. To mitigate these risks, Macy’s emphasizes proactive communication, robust customer support, and a strong omnichannel proposition that makes it easy for shoppers to continue engaging with the brand, regardless of the physical store footprint.

Macro headwinds—such as inflationary pressures, shifts in consumer discretionary spending, and supply chain volatility—could influence the pace and success of the transformation. The company’s response centers on disciplined cost management, selective capital investment, and ongoing optimization of its store portfolio to preserve profitability even in uncertain economic conditions. Real estate considerations, including lease maturities, rent costs, and the geographic distribution of closures, represent additional areas that require careful management to minimize disruption and maximize value creation.

Operational risks also include execution challenges in scaling the successful elements of the First 50 pilots to all go-forward stores. A robust project management framework, standardized training programs, and real-time performance monitoring are essential to ensure that the upgrades deliver consistent results across diverse markets. Macy’s must maintain a focus on customer satisfaction, accurate inventory, and reliable delivery or pickup options to avoid eroding brand trust during the transition. By maintaining a balanced risk management approach, the company aims to navigate these potential headwinds while delivering on its long-term growth and profitability objectives.

Leadership, communication, and future outlook

Macy’s leadership emphasizes clear, consistent communication with employees, customers, and investors about the rationale, progress, and expected outcomes of the Bold New Chapter. The commitment to transparency and consumer-centric decision-making is designed to sustain engagement and confidence as the company executes its portfolio optimization and digital acceleration. The leadership team’s emphasis on operational excellence, data-driven merchandising, and ongoing customer experience enhancements signals a long-term vision for Macy’s that relies on both a revived store network and a robust omnichannel capability.

Looking forward, Macy’s envisions a retail environment where a strategically focused footprint, well-executed store transformations, and a strengthened digital framework work in concert to deliver sustainable growth. The combination of disciplined store closures, capital redeployment, and targeted investments aims to reduce undergrowth and unlock the potential of the brand across both physical and online channels. The company’s approach reflects a modern interpretation of retail optimization: not simply shrinking but intelligently reallocating resources to maximize value, improve profitability, and deliver a richer, more convenient shopping experience for customers.

Conclusion

Macy’s Bold New Chapter marks a pivotal step in the company’s evolution, turning a strategic portfolio transformation into a concrete, multi-year plan to reshape how and where it competes. By closing a defined number of underperforming stores and concentrating resources on the remaining 350 go-forward locations through fiscal 2026, Macy’s seeks to deliver stronger sales growth and improved profitability. The emphasis on high-performing stores, enhanced product assortments, upgraded customer services, and a modernized, digital-enabled shopping experience is designed to create a cohesive, omnichannel brand that resonates with today’s shoppers. The pilot program’s early successes provide a foundation for scaling these improvements nationwide, while continued investments in technology, operations, and store standards aim to sustain momentum in an increasingly dynamic retail landscape. As Macy’s navigates the transition, its focus remains on delivering value and convenience to customers, strengthening its market position, and building a resilient, future-ready business model that can withstand ongoing industry shifts.