Macy’s to Close 150 Stores After Sales Drop $21.3 Billion: Shocking Retail Collapse Explained
Introduction
Think about the last time you walked through a mall and saw that bold red star on the Macy’s sign. For many of us, Macy’s has been more than just a store. It has been part of birthdays, holiday shopping trips, and lazy Sunday afternoons. So when you hear that Macy’s to close 150 stores after sales drop $21.3 billion, it hits differently. This is not just a business headline. It is the end of an era for millions of American shoppers.
The company made its move official through what it calls the “Bold New Chapter” strategy, announced in February 2024. The plan is straightforward but painful. Macy’s will shut down 150 underperforming locations by the end of 2026. That brings the total store count down from over 700 pre-pandemic locations to just 350. As of early 2025, more than 55 of those closures had already happened.
In this article, you will find out exactly what led to this dramatic shrink, what the company plans to do next, and what it all means for you as a shopper. Let us get into it.
Why Macy’s Is Closing 150 Stores: The Real Story Behind the Numbers
When you hear that Macy’s to close 150 stores after sales drop $21.3 billion, the first question most people ask is: how did it come to this? The answer is not just one thing. It is a combination of shifts that quietly built up over years and then hit all at once.
The $21.3 Billion Sales Drop That Changed Everything
In 2023, Macy’s recorded a 5.5% drop in net sales, which translated to a staggering figure of $21.3 billion. That number represents a massive blow to a company that once dominated American retail. In fiscal 2024, the total revenue across all Macy’s brands came in at $22.7 billion, still well below the company’s peak performance. For perspective, Macy’s fiscal revenue back in 2008 totaled $24.9 billion, which would be around $36.3 billion in today’s dollars when adjusted for inflation.
The math does not lie. The company has been in a slow but steady decline, and the pandemic accelerated everything.
COVID Changed How America Shops
Before COVID, many shoppers still had a reason to visit the mall. After COVID, that habit largely disappeared. Shoppers moved online fast, and a huge number of them never came back to physical stores. COVID-19 drove shoppers to turn to e-commerce rather than shopping at retail stores, and this trend mirrors what many other retail and department stores across the shopping industry have experienced as consumers choose to shop online and have goods delivered to their homes.
That shift crushed foot traffic in traditional malls. And since many Macy’s locations were anchored inside those very malls, the damage was direct.
Outdated Stores in Declining Malls
Here is something that does not get talked about enough. Many Macy’s stores were sitting in malls that were already struggling long before the pandemic. When those malls started losing traffic, Macy’s lost it too. The store closures span across the country, with California, Texas, and New York among the hardest-hit states, and closures are also happening in Arizona, Colorado, Florida, Georgia, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Jersey, Ohio, Oregon, Pennsylvania, Tennessee, and Virginia.
These were not vibrant retail hubs. Many were aging properties with shrinking shopper bases. Keeping a full-scale department store open in those locations made no financial sense.
The Bold New Chapter Plan: What Macy’s Is Actually Doing
So the news of Macy’s to close 150 stores after sales drop $21.3 billion is not just a story of failure. It is also a story of a company trying to fight back. CEO Tony Spring made it clear that this is not a retreat. It is a reset.
This plan is designed to return the company to sustainable, profitable sales growth, which includes closing approximately 150 underproductive stores over a three-year period while investing in its 350 go-forward Macy’s locations through fiscal 2026.
Here is what that actually looks like in practice.
Closing the Weakest Stores
The first step was identifying the 150 stores that were dragging down overall performance. Macy’s closed 64 stores in fiscal 2024, which it described as non-go-forward locations, and these closures helped Macy’s bring in more money from real estate, with asset sale gains of $144 million for fiscal 2024, more than double the $61 million figure from the prior year.
Those real estate gains are being used to fund improvements elsewhere. So in a sense, the closures are paying for the comeback.
Upgrading the 350 Stores That Remain
The stores that stay open are not going to stay the same. Macy’s is putting real money into what it calls its “go-forward” locations. Think better staffing in fitting rooms and shoe departments, improved product displays, and a more curated shopping experience overall.
One smart move worth highlighting: when Macy’s added more staffing to the shoes and handbag departments at 100 test locations, those stores outperformed shops that did not receive those investments. That kind of data-driven approach shows the company is learning from its own experiments rather than just guessing.
Leaning Into Luxury With Bloomingdale’s and Bluemercury
Not all parts of Macy’s are struggling equally. Macy’s is doubling down on its luxury brands, Bloomingdale’s and Bluemercury, which have outperformed the main Macy’s stores. This makes sense. Luxury shoppers tend to be less sensitive to economic pressure and more loyal to premium brand experiences.
If you have ever shopped at Bloomingdale’s, you know the experience feels different from a standard Macy’s. That is exactly the kind of differentiation the company is trying to build on.
Going Smaller With New Format Stores
Here is something that might surprise you. Even as Macy’s closes big stores, it is also opening smaller ones. After opening a test store in San Diego County in 2023, Macy’s plans to add up to 30 more by fall 2025, bringing the total to around 42 small-format locations in outdoor shopping centers.
These smaller stores work better for how many people shop today. Outdoor shopping centers are gaining popularity as indoor malls decline. Macy’s is chasing the shopper, not waiting for them to come back.
What This Means for You as a Shopper
When Macy’s to close 150 stores after sales drop $21.3 billion, the effects are not just felt in corporate boardrooms. You feel them too, whether you realize it or not.
Liquidation Sales Are Happening Right Now
If your local Macy’s is on the closure list, you should know that liquidation sales have already started at many locations. Some discounts have reached up to 70% off select products. That is genuinely worth checking out before those doors close for good.
Online Shopping Gets Better
Macy’s is investing heavily in its digital experience. Faster shipping, better personalization, and an upgraded website and mobile app are all part of the plan. If you have been frustrated with the Macy’s app or website in the past, it is likely to improve. The company knows it cannot survive without a strong online presence.
Fewer Locations Near You
Let us be real. If you live in a smaller city or shop at a less popular mall, there is a real chance your nearest Macy’s has already closed or is about to. That is an inconvenience that no amount of improved e-commerce fully replaces for shoppers who prefer to see and feel what they are buying.
How Does This Compare to Other Retailers?
Macy’s is not alone in this struggle. The fact that Macy’s to close 150 stores after sales drop $21.3 billion reflects a bigger trend across American retail. Nordstrom, JCPenney, Sears, and Bed Bath & Beyond have all made dramatic moves in recent years. Some survived, some did not.
What makes Macy’s situation unique is its sheer size and history. Founded in 1858 by Rowland Hussey Macy, the company has survived economic depressions, two world wars, and multiple bankruptcies in the industry. One of its early owners, Isidor Straus, even perished on the Titanic in 1912. This is a company with deep roots.
The question is whether those roots are enough to hold as the retail landscape keeps shifting.
Signs That the Strategy Might Actually Work
Despite all the tough news around Macy’s to close 150 stores after sales drop $21.3 billion, there are some green shoots worth noting.
In fiscal 2024, comparable sales across Macy’s business were down by 0.9%, but that is an improvement of 5.1 percentage points compared to fiscal 2023. That is real progress, even if it is slow.
Wall Street is also paying attention. Goldman Sachs analysts raised their Macy’s stock price target to $22 from $16.50. JP Morgan increased its target to $23 from $18. Jefferies raised its target to $26 from $18.50. These are not the moves of analysts who think a company is about to collapse.
The company also recently announced plans to resume share buybacks under its $1.4 billion repurchase authorization, which signals some confidence in its financial position.
The Risks That Still Loom
Not everything is rosy. There are real challenges still facing Macy’s.
Tariffs are one concern. About 20% of Macy’s products are imported from China, and ongoing trade pressures are adding cost pressure. The company has been managing this by negotiating with suppliers and selectively raising prices, but it is a challenge that will not disappear overnight.
There is also the question of timing. Turning around a company this size takes years. Reimagined stores now make up 36% of the 350 Macy’s locations the business plans to keep open, and it will take time and capital to extend its strategy to the bulk of the chain.
Some retail experts remain cautious. As one 30-year retail industry veteran pointed out, Macy’s format may limit its growth as people shop differently now, particularly in a changing economic environment where middle-market brands face growing pressure from both luxury and discount ends of the market.
Conclusion: Is This the End or a New Beginning?
The story of Macy’s to close 150 stores after sales drop $21.3 billion is complicated. It is part cautionary tale, part comeback story, and part reflection of a retail world that has changed faster than anyone expected.
This is not Macy’s first time at a crossroads. The company has reinvented itself before and it may do so again. The Bold New Chapter plan is not a guarantee of success, but it is a serious attempt to stay relevant in a world where online shopping, shifting consumer habits, and declining malls have changed everything.
For now, if you want to grab a bargain, check if your local store is in the closing wave. If you are a loyal Macy’s customer, the good news is the brand is not disappearing. It is just getting smaller and, if the strategy works, sharper.
What do you think? Can Macy’s pull off this transformation, or is the closure of 150 stores just the beginning of a longer decline? Drop your thoughts in the comments, share this article with someone who grew up shopping at Macy’s, or check out your nearest store to see what is changing.
Frequently Asked Questions
Q1: Why is Macy’s closing 150 stores?
Macy’s to close 150 stores after sales drop $21.3 billion due to declining foot traffic, the rise of online shopping, and the ongoing decline of traditional indoor malls. The closures are part of its “Bold New Chapter” strategy to focus on stronger locations.
Q2: Which states are most affected by the Macy’s store closures?
California, Texas, and New York have the most closures, but stores are also closing in over a dozen other states including Florida, Illinois, Ohio, Georgia, and Michigan.
Q3: When will all 150 Macy’s stores close?
The closures are planned through the end of fiscal 2026. As of early 2025, more than 55 of the originally announced 66 stores had already shut down.
Q4: Will Macy’s close all its stores eventually?
No. Macy’s plans to keep 350 “go-forward” locations open. The company is investing in these stores to improve the shopping experience and grow its online presence.
Q5: Are there liquidation sales at closing Macy’s stores?
Yes. Many closing stores have held clearance sales with discounts up to 70% off. Check your local store’s status at macys.com.
Q6: How is Macy’s making money from the closures?
By selling or leasing the valuable real estate where closed stores once operated. In fiscal 2024, Macy’s generated $144 million in asset sale gains, more than double the prior year.
Q7: Is Bloomingdale’s also closing stores?
No. Bloomingdale’s and Bluemercury have actually been outperforming the main Macy’s brand. Macy’s is investing more in these luxury lines, not cutting them.
Q8: How does this affect Macy’s employees?
Store closures lead to job losses for retail workers at those locations. The company has not released a detailed public statement on total employee impact, but closures of this scale do result in significant layoffs.
Q9: Is Macy’s stock a good investment right now?
Analysts at Goldman Sachs, JP Morgan, and Jefferies have all raised their price targets for Macy’s in 2025, suggesting cautious optimism. That said, this is not financial advice. Do your own research before investing.
Q10: Can I still return items at a closing Macy’s store?
Most closing stores accept returns during the liquidation period, but policies can vary by location. It is best to call ahead or check macys.com for specific store information.
Email: ha458545@gmail.com
Author Name: Hamid Ali
About the Author: Hamid Ali is a business and retail journalist with a passion for breaking down complex economic stories into clear, reader-friendly content. He covers consumer trends, corporate strategy, and the changing face of American retail.
