Macy’s, the iconic American department store chain, has announced it will shutter 66 stores across 22 states in 2025. The move is part of a sweeping transformation strategy aimed at modernizing its business and focusing investments on more profitable locations.
The store closures are part of Macy’s “Bold New Chapter” initiative, a three-year plan to close around 150 underperforming stores while doubling down on its most successful branches. Of the 66 closures, most were finalized by mid-May 2025, affecting prominent locations in major retail hubs including California, New York, Florida, and Texas.
Strategic Refocus on High-Performing Stores
Macy’s executives explained that the decision is a necessary step toward ensuring long-term success in a rapidly evolving retail landscape. The company has identified 350 “go-forward” stores that have shown consistent profitability and positive customer response.
“These closures allow us to redirect resources toward stores and markets where we see the greatest potential,” the company said in a public statement. “Our ‘go-forward’ locations have demonstrated growth through improved sales performance, localized assortments, and superior customer experiences.”
Notable store closures include Macy’s in the historic Wanamaker Building in Philadelphia and the Downtown Brooklyn location, both of which were considered landmarks but struggled with foot traffic and sales over recent years.
Reducing Footprint Amid Retail Headwinds
The retail sector continues to grapple with seismic shifts in consumer behavior, especially the ongoing migration to online shopping and the decline of traditional mall traffic. In 2025 alone, over 15,000 physical retail stores are expected to close across the U.S.—twice the number seen in 2024.
Retail analysts note that Macy’s is not alone. Department stores like JCPenney, Kohl’s, and Nordstrom have also scaled back physical locations in favor of streamlining operations and enhancing digital offerings.
“Macy’s is making a calculated move to survive the future of retail,” said one industry expert. “It’s no longer about having the most stores, but about having the right stores in the right places.”
Investments in Growth and Innovation
Alongside the store closures, Macy’s is investing heavily in the modernization of its successful locations. Plans include extensive remodeling, upgraded in-store experiences, and stronger integration with online platforms. These changes are aimed at creating a seamless omnichannel shopping journey for customers who now demand both convenience and personalization.
In addition to Macy’s core business revamp, the company is expanding its presence in the luxury retail market. It will open 15 new Bloomingdale’s stores and at least 30 Bluemercury beauty boutiques over the next three years.
The shift toward luxury is a deliberate tactic to capitalize on segments of the market that have remained resilient despite economic uncertainty. These new store formats will offer curated high-end products and services in smaller, more targeted spaces.
Community and Workforce Impact
The closures will have wide-reaching effects on employees and local communities. Each store employs dozens to hundreds of staff members, many of whom now face job uncertainty. Macy’s said it will offer severance and potential placement opportunities for impacted employees, though exact figures have not been disclosed.
Customers in affected regions have expressed disappointment but acknowledged the changing nature of shopping habits.
“I’ve shopped at my local Macy’s for 20 years—it’s sad to see it go,” said a Florida shopper. “But I also buy more online these days, so I understand why they’re doing this.”
Looking Ahead
Macy’s “Bold New Chapter” reflects a broader evolution in how American retailers must adapt to survive. By trimming its footprint and focusing on innovation, the company hopes to reclaim relevance in a competitive market that favors agility and experience.
With physical stores continuing to face existential challenges, Macy’s transformation offers a blueprint for legacy brands looking to reinvent themselves in the digital age.