Macy’s Store Closures: Why the Iconic Retailer Is Shutting Down More Stores

For more than 160 years, Macy’s has been a cornerstone of American retail. From the flagship Herald Square store in New York City to hundreds of locations across malls nationwide, the brand became synonymous with holiday shopping, fashion, and family traditions like the Macy’s Thanksgiving Day Parade.

But the retail world has shifted dramatically. Declining mall traffic, the explosive rise of e-commerce, and changing consumer habits have pushed Macy’s to rethink its strategy. In 2024, the company unveiled a sweeping restructuring plan called the “Bold New Chapter.” The goal: close about 150 underperforming stores by 2026, streamline operations, and reinvest in stronger formats like small-format Macy’s stores, luxury Bloomingdale’s, beauty retailer Bluemercury, and a more robust digital experience.

Here’s a breakdown of why stores are closing, which locations are affected, and what it all means for shoppers.

Why Is Macy’s Closing Stores?

Macy’s isn’t going out of business — it’s repositioning. The closures are targeted at stores that no longer make financial sense. Several key factors are driving this shift:

Declining Mall Traffic
For decades, Macy’s anchored malls, drawing foot traffic for smaller retailers. But as shoppers turned toward lifestyle centers and online platforms, many malls saw foot traffic plummet. Macy’s stores in these weaker malls have struggled to stay profitable.
The E-Commerce Boom
Online shopping offers convenience that traditional department stores can’t match. Even as Macy’s invests in its website and mobile app, operating massive, underperforming stores has become too costly compared to digital sales.
The Retail Reset
The so-called “retail apocalypse” has claimed giants like Sears, JCPenney, and Bed Bath & Beyond. While retail isn’t dying, it’s transforming. Macy’s decision to slim down is part of that evolution.
The Bold New Chapter Strategy
Instead of trying to prop up underperforming stores, Macy’s is putting money where growth is happening:

Smaller off-mall Macy’s stores are easier to shop.
Luxury retail via Bloomingdale’s.
Beauty expansion through Bluemercury.
Digital innovation with stronger online platforms and app features.

In short, this is less about retreat and more about reinvention.

How Many Macy’s Stores Are Closing?

Macy’s plans to shutter about 150 locations by the end of fiscal 2026 (January 2027). Closures are staggered to manage liquidation sales, employee transitions, and property decisions.

Early 2025: The first wave included 66 store closures across 22 states.
Mid-2025: Another 80+ stores were added to the list, bringing the total to more than 150 ahead of schedule.
2026: Additional closures will roll out on a rolling basis, depending on lease expirations and market performance.

Despite the headlines, Macy’s will continue to operate about 350 “go-forward” stores nationwide — locations with strong sales, high community demand, or strategic importance.

Which Macy’s Stores Are Closing?

Closures are spread across major retail states, including California, Florida, Texas, and New York. A few high-profile examples include:

California: Village at Corte Madera (Corte Madera), Sunrise Mall (Citrus Heights), Westminster Mall (Westminster).
Florida: Boynton Beach Mall (Boynton Beach), West Shore Plaza (Tampa), Southgate (Sarasota).
Texas: Almeda Mall (Houston), Shops at Willow Bend (Plano), Southlake Town Square (Southlake).
New York: Queens Place (Elmhurst), Sunrise Mall (Massapequa), Fulton Street (Brooklyn).

Other affected states include Ohio, Illinois, Pennsylvania, and New Jersey. More closures will be announced through 2026.

When Are Stores Closing? (Timeline & Clearance Sales)

Closures follow a clear cycle:

Announcement: Macy’s issues press releases or local notices.
Liquidation Sales: Discounts start at 20–40% and rise weekly. By the final days, shoppers can find 70–90% off, though selection is limited.
Fixtures & Equipment Sales: Store racks, mannequins, and even registers are often sold.
Final Closure: Typically 8–12 weeks after sales begin.

Key dates to note:

Spring 2025 – First wave closures completed.
Summer 2025 – Second wave wraps up.
2026 – Final closures announced on a rolling basis.

What Happens to Macy’s Employees?

Store closures affect thousands of associates, managers, and support staff. On average, each large department store employs 100–200 people, meaning tens of thousands of jobs could be impacted by 2026.

Transfers: Some workers are offered roles at nearby Macy’s locations.
Severance: Those unable to transfer receive severance pay and career transition support.
Advance Notice: Employees are typically notified weeks in advance, with temporary employment through clearance periods.

What Happens to the Empty Stores?

When Macy’s shutters, it leaves behind massive spaces that often exceed 100,000 square feet. Many of these sites are being redeveloped into:

Housing projects (apartments/condos).
Entertainment venues (gyms, movie theaters, indoor sports).
Mixed-use hubs combining dining, retail, and offices.

For example, the former Macy’s in Corte Madera, CA, is being considered for residential redevelopment — part of a broader trend of repurposing anchor store spaces.

Is Macy’s Opening New Stores?

Yes. While Macy’s is shrinking in some areas, it’s expanding in others:

Smaller Macy’s Stores: About one-fifth the size of traditional locations, off-mall, and focused on bestsellers like apparel, shoes, and beauty.
Bloomingdale’s: 15 new stores are planned in affluent markets.
Bluemercury: Around 30 new stores plus remodels to meet strong beauty demand.

Example: A new small-format Macy’s is opening at Midway Crossings Mall in Miami, FL, showing how the company is repositioning outside traditional mall anchors.

What Shoppers Need to Know

Gift Cards & Rewards: Star Rewards points and Macy’s gift cards remain valid everywhere, including online.
Returns: Purchases at closing stores can still be returned online or at nearby Macy’s. Clearance items may be final sale.
Online Shopping: Macy’s is heavily investing in macys.com and its app, with expanded selection, loyalty perks, and convenient shipping or in-store pickup.

The Bigger Picture: Reinvention Over Retreat

Macy’s closures may feel like the end of an era, but the brand isn’t collapsing — it’s adapting. By 2026, Macy’s will have a leaner footprint of about 350 stores, a stronger luxury and beauty portfolio, and a digitally integrated shopping experience.

For shoppers, that means fewer local department stores but more curated and convenient options. For communities, it means the challenge of filling large retail spaces — and in some cases, the opportunity for new housing, entertainment, or mixed-use developments.

The takeaway: Macy’s isn’t disappearing. It’s reshaping itself for the future of retail, balancing tradition with transformation in a marketplace where convenience and experience matter more than square footage.