Macy’s Announces Closure of 66 Stores Nationwide in Major Restructuring Move

In a significant strategic shift, Macy’s has confirmed the closure of 66 stores across the United States as part of its “Bold New Chapter” initiative, marking another major transformation in the American retail landscape. The closures, which will begin with liquidation sales in January 2025, represent the first wave of the company’s previously announced plan to shutter 150 locations by the end of 2026.

The retail giant’s restructuring affects stores across multiple states, with notable concentrations in New York and California, each losing nine locations. The closure list includes several historic and prominent locations, including the Philadelphia City Center store, which has long been a shopping landmark in the region. The liquidation sales are expected to run for 8-12 weeks for full-line and small-format stores, while furniture galleries and standalone Backstage stores will begin their clearance sales in February.

This strategic decision comes as Macy’s continues to grapple with declining sales and changing consumer preferences. The company plans to reinvest in approximately 350 “go-forward” locations, focusing on luxury merchandise and smaller format stores. The restructuring is expected to generate between $600 million and $750 million through the sale of closed store properties.

The impact of these closures extends beyond the retail giant itself. Communities across the nation are expressing concern about the economic implications. In Salem, Oregon, where a Macy’s store that has operated for nearly seven decades will close, residents worry about the broader impact on their local economy and shopping convenience.

The closures affect various store formats, including traditional department stores, furniture galleries, and Macy’s Backstage locations. Among the notable closures are locations in major metropolitan areas such as Brooklyn Downtown, Dallas Market, and multiple stores in California and Florida.

Macy’s Chairman and CEO Tony Spring emphasized that these closures are necessary to focus resources on more productive locations. The company’s “First 50” pilot stores, which received strategic investments, have shown promising results with increased sales for three consecutive quarters.

The retail sector’s transformation reflects broader changes in consumer behavior and the increasing competition from online retailers. Macy’s joins other traditional department store chains that have faced similar challenges, with previous years seeing the bankruptcies of retail stalwarts such as Sears, JCPenney, and Neiman Marcus.

Despite these challenges, Macy’s remains optimistic about its future. The company’s transformation strategy includes plans to open 30 smaller-format stores and 15 new Bloomingdale’s locations over the next three years. However, the company’s recent performance indicates ongoing struggles, with shares dropping 16% over the past year and recent accounting errors affecting profit forecasts.

For affected employees and communities, the closures represent the end of an era in American retail. The company’s shift toward a more focused, efficient operation signals the continuing evolution of retail in response to changing consumer preferences and the growing dominance of digital commerce.