Macy’s to Close 150 Stores in Three Years in Bold Restructuring Move

Macy’s Inc. announced plans to close 150 underperforming stores over the next three years — a major move under new CEO Tony Spring as the iconic retailer attempts to modernise its footprint and regain relevance in an evolving retail landscape.

The closures, part of a broader strategy dubbed “A Bold New Chapter,” will include 50 store shutdowns this year alone. Simultaneously, Macy’s plans to open 30 small-format Macy’s locations, 15 Bloomingdale’s stores, and at least 30 Bluemercury beauty stores, signalling a clear pivot toward off-mall and luxury growth.

“The bar has now been raised,” said Spring during a post-earnings analyst call. “Even cash-flow positive stores will be shut down if they’re not meeting performance expectations.”

📉 Slowing Sales, Strategic Shifts

The announcement followed disappointing Q4 earnings, where net sales dipped 1.7% year over year to $8.1 billion, and same-store comps fell across all banners — Macy’s down 4.7%, Bloomingdale’s down 1.6%, and Bluemercury up 2.3%.

Despite improved margins and better inventory control, GlobalData analysts noted that sales declines — excluding the extra 53rd week — approached 8%, suggesting significant market share losses in core categories like apparel, home, and beauty.

Still, some analysts viewed the quarter as “well-balanced,” with Spring emphasising a disciplined financial approach: $500–$650 million in store monetisation proceeds and $250–$350 million in asset sales are expected over the next three years.

🏬 What This Means for Shoppers

For CouponOutlet readers and savvy online shoppers, the closure of full-line stores may mean fewer physical locations for returns or in-store exclusives, but the shift may enhance online shopping reliability, faster fulfilment, and more curated assortments.

The company’s small-format stores are designed to be more efficient, and Spring hinted that investments will go toward “modernising” the customer experience in locations that remain open.

“Stores will be given proper refurbishment and staffing levels to match the brand’s mid-tier department store positioning,” said Neil Saunders, Managing Director at GlobalData.

🧠 Macy’s Private Labels & Online Strategy

In a bid to differentiate, Macy’s is doubling down on private labels. These currently make up 15% of sales, down from 16% in 2022. The retailer is phasing out legacy lines like Alfani and Karen Scott while introducing new brands like State of Day, aimed at style-savvy value seekers.

This revamp supports Macy’s push to offer exclusive merchandise and stronger margins, while its e-commerce platform continues evolving, including faster delivery, better inventory accuracy, and AI-assisted shopping — all key concerns for deal-conscious buyers.

🏢 Real Estate, But at What Cost?

Macy’s rejection of a $5.8 billion buyout from Arkhouse Management and Brigade Capital earlier this year was largely tied to its valuable real estate assets, estimated between $5–$9 billion. The new transformation strategy appears to lean into monetisation, but without sacrificing operational flexibility.

Still, some retail experts caution that downsizing doesn’t go far enough.

“Macy’s should cut to 150–200 stores, mainly on the coasts,” said Nick Egelanian of SiteWorks. “Small-format experiments won’t save them. They need a bolder, more exciting retail concept.”

🔎 CouponOutlet Takeaway

While closures may limit local access to Macy’s stores, deal hunters stand to benefit as Macy’s modernises with a more agile store base, refreshed private labels, and smarter e-commerce operations.

Stay alert for store-closing sales and online clearance events as locations wind down, and monitor Macy’s evolving digital presence for exclusive promo codes and seasonal discounts.