Macy's to Close 65 Stores by January 2025 Amid Restructuring Plans

Macy's to Close 65 Stores

Macy's to Close 65 Underperforming Stores by January 2025, Expanding Earlier Plans

Macy’s has increased the number of store closures it plans to make by the end of January 2025, now targeting 65 locations instead of the previously planned 50-55. CEO Tony Spring explained that the adjustment comes as the “deal-making environment remains favorable,” allowing the company to accelerate its restructuring efforts.

The closures are part of Macy’s broader strategy to shut down 150 underperforming stores by 2026. While the company hasn’t revealed the specific locations or exact dates for the closures, they are expected to occur after the holiday season. Macy’s currently operates 479 department stores, along with smaller format locations and its Bloomingdale’s and Bluemercury brands.

In related news, Macy’s reported third-quarter net sales of $4.7 billion, marking a 2.4% drop from the previous year. Like many other traditional retailers, Macy’s is grappling with shifts in consumer shopping behavior and increasing competition from e-commerce. The company has not specified which stores will be affected, but the closures will further reduce its footprint in a challenging retail environment.

Despite the declining sales and store closures, Macy’s is still on track to meet its goal of closing 150 stores by 2026. The company’s decision to increase the pace of closures comes as part of its larger strategy to focus on more profitable locations.

Macy's also recently delayed its full Q3 earnings report after an internal investigation uncovered $154 million in expenses hidden by an employee over several years. The company reassured investors that the issue had no significant financial impact.