Macy’s, one of the nation’s most iconic department store chains, has announced the closure of 66 additional stores in 2025. This move comes as part of the retailer’s “A Bold New Chapter” plan, aimed at addressing declining sales and adapting to a rapidly evolving retail landscape. The closures include department stores, furniture outlets, and small-format locations, with liquidation sales scheduled to begin in January.
Background and Strategy
In 2022, Macy’s revealed plans to shutter 150 underperforming locations by the end of 2026, representing about one-third of its total stores. To date, 80 stores have already closed, and the upcoming closures bring the company closer to its target. Macy’s CEO Tony Spring emphasized that the focus remains on investing in the “350 go-forward Macy’s locations,” which are deemed critical to the company’s future.
In his statement, Spring explained, “These closures will allow us to allocate resources more effectively and prioritize investments in stores that align with our long-term goals.”
The closures are part of a broader trend affecting the department store sector, which has been struggling to compete with online retailers, fast-fashion brands, and big-box chains. Notable competitors like Sears, JCPenney, and Neiman Marcus have faced similar challenges, with many filing for bankruptcy in recent years.
Closure Details
The latest round of closures spans multiple states, including high-profile locations such as:
- California: Sunrise Mall in Citrus Heights and Otay Ranch Town Center in Chula Vista.
- New York: Macy’s Backstage stores in Sheepshead Bay, Queens Place, and Fordham Place.
- Texas: Almeda Mall in Houston and The Shops at Willow Bend in Plano.
- Florida: West Shore Plaza in Tampa and Boynton Beach Mall.
Clearance sales for most stores are set to run for 8–12 weeks starting in January, while furniture and small-format store sales will begin in February and last for approximately six weeks.
Industry Trends and Challenges
The department store model has faced significant headwinds over the past decade, with the rise of e-commerce giants like Amazon and the growing popularity of budget-friendly fashion retailers such as Zara and H&M. Additionally, changing consumer behavior, including a preference for experiences over physical goods, has further strained traditional retailers.
Despite these challenges, Macy’s has been working to pivot its strategy by leaning into high-end brands and investing in smaller, more agile store formats. Its “Market by Macy’s” concept, which focuses on curated collections in smaller spaces, is one such initiative aimed at attracting younger shoppers and adapting to new retail trends.
What’s Next?
The upcoming store closures represent another chapter in Macy’s efforts to right-size its operations and focus on long-term profitability. While these decisions are difficult, they align with the company’s broader mission to remain competitive in a challenging retail environment.