Retail giant Macy's announced plans to shutter 66 stores across the United States by early 2025, marking the first wave of a larger restructuring initiative that will see 150 locations close by 2026.
The closures are part of the company's "Bold New Chapter" strategy, aimed at revitalizing the brand and boosting profitability. The plan focuses on investing in 350 remaining locations while eliminating underperforming stores.
"Closing any store is never easy," said Macy's Chairman and CEO Tony Spring in a statement. He explained that closing underproductive locations will allow the company to concentrate resources on better-performing stores where customers have responded positively to improved product offerings and service.
The announcement impacts multiple major markets, with several stores closing in the New York metropolitan area alone, including locations in Brooklyn, Queens, and Staten Island. Liquidation sales at affected stores are expected to begin in January 2025 and run for two to three months.
While overall sales declined 2.4% to $4.7 billion in the third quarter of 2024, the company reported encouraging results from its modernization efforts. Sales at Macy's "First 50" locations, which showcase the retailer's new strategy, increased by 1.9% - marking three consecutive quarters of growth.
As part of its transformation, Macy's plans to expand its luxury divisions, announcing the opening of approximately 15 new Bloomingdale's stores and at least 30 new Bluemercury locations. The company will also renovate about 30 existing Bluemercury stores.
This move follows a broader trend in retail, with other major chains like Bed Bath & Beyond, Kohl's, and Big Lots also announcing store closures in recent months as the industry continues to evolve.