US department store giant Macy’s will close 14 underperforming stores in 2026, mostly in the first quarter, as the company continues its sweeping transformation plan.
A major department store has revealed plans to axe 14 more struggling outlets this year.
Macy’s is pressing on with a massive shake-up of its physical retail presence, as the American department store titan forges ahead with its recovery strategy. The fresh round of closures comes after the shuttering of 66 sites in 2025 and 55 the previous year, bringing the retailer roughly 80% of the way to its goal of shuttering 150 stores once this latest wave is finished.
The majority of the new closures are anticipated to happen during the first quarter. These store cuts are at the heart of the “Bold New Chapter” transformation blueprint launched by chief executive Tony Spring in February 2024, designed to halt years of declining sales and reposition the company for sustained growth, reports the Express.
In an internal communication obtained by trade publication WWD, Spring explained the company was continuing to evaluate its store network and investment focus.
“As we execute our strategy, we are making deliberate choices about where and how we invest, including exiting stores that are not delivering and simplifying our operations,” he stated.
Spring confirmed that impacted employees would be offered assistance, including chances to relocate to alternative branches where feasible, alongside redundancy payments and career transition support. Whilst shop closures are broadly seen as the most disruptive element of the strategy, other parts of the plan are starting to show promise.
Retail experts suggest that investments in product selection and store improvements are striking a chord with customers.
“Macy’s has made meaningful improvements to its offer and is starting to see stronger performance as a result,” said Neil Saunders, managing director of GlobalData’s retail division.
“That’s giving management confidence to double down on the stores it believes can succeed and continue evolving them for today’s customer.”
Spring’s blueprint represented his inaugural major strategic initiative since taking the helm as chief executive, following a year as president of Macy’s Inc. and nearly a decade at the head of Bloomingdale’s.
The transformation encompasses both the customer-facing operations and behind-the-scenes processes, emphasising the streamlining of administrative systems and refining the company’s brand collection.
Alongside the Macy’s revival, the firm intends to grow its more successful divisions, including launching 15 fresh Bloomingdale’s luxury outlets and 30 Bluemercury sites, its beauty chain that rivals Ulta and Sephora.
The pressing need for this overhaul stemmed from persistent drops at the Macy’s brand, with like-for-like sales tumbling 3.3% in fiscal 2022 and 6.6% in fiscal 2023. In the course of this transformation, the retailer has earmarked 350 key stores for long-term retention, with 125 of these serving as trial sites for experimenting with new layouts, product ranges and enhancements to customer experience.
Macy’s top brass are confident that these modifications will eventually stabilise the business, despite the ongoing impact of store closures continuing to redefine its high street footprint.