Macy’s isn’t done downsizing, but it’s not giving up either, the iconic department store chain has confirmed it will deploy closures of 86 more locations as part of its ongoing “Bold New Chapter” turnaround strategy. That’s on top of the 64 stores already closed, aiming to downsize the fleet by 150 stores in total by 2027.
But there’s more to the plan than just locking doors. According to CEO Tony Spring, Macy’s has four key moves in play to stay competitive, and they’re all about adapting fast to today’s brutal retail landscape.
What’s Macy’s Next Move?
With net sales down 5.1% in Q1 2025 and a revised earnings forecast of $1.60 to $2.00 per share (down from $2.25), Macy’s knows it can’t afford to stay static.
Here’s what the company is doing:
- Reducing Reliance on China
Tariffs from the Trump administration are hitting imported goods hard. Macy’s is actively sourcing fewer products from China to avoid the cost crunch. - Tougher Supplier Deals
The brand is negotiating harder with vendors, demanding better terms, squeezing in discounts, and in some cases canceling or delaying orders altogether. - Price Increases (Strategically)
Outgoing CFO Adrian Mitchell confirmed Macy’s is raising prices in selective categories and brands, but only where the “value equation” still makes sense for customers. - Inventory Overhaul
Macy’s is clearing out late-arriving spring inventory now to make room for fresh seasonal products. This will bite into short-term margins but is meant to stabilize long-term performance.
The Closures Aren’t Random
The 86 stores on the chopping block aren’t performing up to standard, and Macy’s has already cashed in $16 million in real estate asset sales to fund its refresh.
But it’s not just about shutting down, it’s about upgrading what’s left. Macy’s says 125 of its remaining “go-forward” stores have been reimagined with new assortments and staffing, and these updated stores are already outperforming the rest of the fleet.
Spring has made it clear: this is about right-sizing the business to match changing consumer habits, especially as more shoppers move online or choose specialty retailers.
Will It Work?
Retail analysts are cautiously optimistic. Neil Saunders of GlobalData called the numbers “not terrible,” noting that the sales drop includes impacts from already-closed stores.
He added that even with a tougher economy looming, Macy’s outlook isn’t bleak, comparable sales are expected to dip just 2% at worst.
Spring, meanwhile, is looking ahead to the holidays. He’s slashing underperforming products now so Macy’s is “well positioned for the fall and holiday season,” with a new mix of offerings and better timing on deliveries.
What You Might Not Find in Macy’s Anymore
Thanks to the import shake-up and canceled orders, shoppers could start seeing fewer familiar products. The brand is pulling back on everything from home goods to toys to clothing that depend on overseas supply chains. Even everyday essentials like coffee, bananas, and sneakers could carry higher price tags depending on where they’re sourced.
It’s not great news for consumers, but it’s a necessary tradeoff for Macy’s to stay solvent.
What’s the Bigger Picture?
Macy’s isn’t alone. The retail apocalypse hasn’t slowed in 2025, legacy chains are fighting tooth and nail to stay afloat. Just last year, Macy’s pulled out of Union Square in San Francisco, Brooklyn’s Fulton Street, and even the historic Wanamaker Building in Philadelphia.
The reality is simple: department stores aren’t dead, but bloated ones are. Macy’s is betting that a leaner footprint, smarter inventory, and tighter cost controls can rewrite its story before it’s too late.
