Iconic Department Store Chain Makes Surprising Update on Plans to Close 150 Locations

Macy's isn't closing its doors as quickly as it once planned, but make no mistake, the closures are still coming.

The iconic department store chain, which announced its "Bold New Chapter" turnaround strategy in early 2024, originally planned to shutter 150 underperforming locations by the end of 2026. On Wednesday, CFO Tom Edwards revealed during Macy's fourth quarter earnings call that the timeline has been significantly extended, with the remaining closures now expected to stretch through the end of 2028.

"With our strong balance sheet and cash flow generation, we can be flexible on timing of transactions," Edwards said. "In order to maximize value of remaining assets, we now expect closures through 2028."

Macy's Store Closings: Status Update

The company has already closed a significant number of locations under the plan. In January alone, Macy's shuttered 14 stores across the country, with locations closing in California, Georgia, Maryland, Michigan, Minnesota, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Texas, and Washington. About 65 more closures remain before the 150-store target is reached.

The strategy behind the closures is straightforward: cut the underperformers and double down on what's working. The 150 shuttered locations represent roughly 25% of Macy's total square footage but less than 10% of total sales, meaning the company is shedding significant physical space without sacrificing much revenue. The freed-up resources are being redirected toward 350 "go-forward" stores and the continued expansion of its luxury brands, Bloomingdale's and Bluemercury.

The revamped stores appear to be delivering results. CEO Tony Spring announced that an additional 75 locations are being added to Macy's "Reimagine" program — bringing the total to 200 stores receiving enhanced investment in design, assortment, and customer experience.