Macy’s, a storied American department store chain, has long been woven into the fabric of US retail. For generations, its flagship locations and mall anchors embodied the country’s love affair with shopping in sprawling, well-stocked stores. However, consumer preferences have evolved. The rise of e-commerce, changing shopping habits, and shifts in retail real estate have left department stores like Macy’s facing unprecedented challenges. Against this backdrop, Macy’s has begun shuttering locations across the country—a strategic response to pressures both old and new.
Macy’s has announced the closure of at least 150 stores over the next few years, part of a “Polaris” plan aimed at strengthening the brand’s most productive locations and investing further in digital growth. In the past two years, dozens of Macy’s stores in small- and mid-sized markets have already closed, with additional closures scheduled for 2024 and beyond.
The recent wave of store closures has especially impacted locations in suburban shopping malls and downtown districts. Areas in California, Illinois, Florida, and Pennsylvania have seen a disproportionate number of stores shuttered. Notably, shopping centers that once relied on Macy’s as a traffic-driving anchor are now grappling with reduced footfall.
For example:
The closure of a Macy’s often leaves a significant vacancy behind—these were often anchor tenants occupying tens of thousands of square feet. Without them, many malls face falling property values and declining patronage in neighboring outlets.
“When a major anchor retailer like Macy’s leaves, it can create a domino effect for other stores, accelerating the decline of already struggling malls,” says Neil Saunders, managing director at GlobalData Retail.
Beyond lost jobs, local economies dependent on retail face ripple effects, often prompting city officials and developers to rethink how these large spaces can be repurposed.
Shopping habits in the US have shifted markedly. Americans are increasingly favoring online retail giants for convenience and better pricing. Foot traffic in traditional malls has steadily declined. This isn’t unique to Macy’s—many storied department stores face similar headwinds, but Macy’s extensive national footprint has made it especially vulnerable.
The digital transformation has reshaped expectations. Macy’s, like many of its peers, invested heavily in e-commerce and curbside pickup, but digital-native brands and platforms such as Amazon continue to siphon share. In 2023, analysts estimated that e-commerce accounted for roughly a quarter of total apparel sales in the US, a figure that continues to climb.
Many of Macy’s older locations are tied to expensive, long-term leases in declining malls—making these stores less profitable. The company’s Polaris strategy focuses on closing underperforming sites and redirecting capital to flourishing flagship stores, digital infrastructure, and smaller “off-mall” store formats.
Macy’s is not alone in its retrenchment. Other department store titans—JCPenney, Sears, and Nordstrom—have been forced to close stores or alter business models due to similar market forces. The so-called “retail apocalypse,” hastened by the COVID-19 pandemic, simply accelerated a trend already well underway.
While Macy’s has not published a single, continuously updated master list of closures, several major rounds have been announced since 2020. Below, representative locations scheduled for closure include:
This is just a selection—Macy’s has signaled many more closures to follow, focusing particularly on locations with shrinking in-store sales or unfavorable lease agreements.
Despite the closures, Macy’s is far from retreating. The retailer is opening smaller “Market by Macy’s” stores in off-mall locations, designed to offer curated product assortments and a seamless blend of online and in-person shopping. Early data suggests these stores are more in tune with modern consumer demands.
Macy’s is doubling down on high-performing flagship stores in major urban centers. Landmark locations like Herald Square in New York City are being renovated to enhance experiences, attract tourists, and serve as showcases for the brand.
The company is also prioritizing robust omni-channel capabilities, such as same-day delivery, easier returns, and personalized marketing. Improvements in the Macy’s website and mobile app have led to steady online growth, even as physical locations close.
The closure of a Macy’s store affects not only business metrics but also local communities and shoppers. Tens of thousands of employees have been impacted over recent years, facing layoffs, severance, or transfers to surviving locations when possible. For shoppers, the loss of a longstanding Macy’s can feel cultural, affecting holiday traditions and local commerce.
Mall owners and city planners are repurposing former Macy’s spaces for everything from fitness centers to mixed-use developments. In some cases, charitable organizations use these spaces for community projects, reflecting a trend toward social as well as economic reinvention.
Macy’s is navigating a delicate, high-stakes transformation in response to seismic changes in retail. While many locations are closing, the company is not disappearing. Instead, it is shedding old strategies in favor of innovation, focusing on digital expansion, new store formats, and the revitalization of key flagship sites. For American shoppers and towns across the country, Macy’s evolving story mirrors the broader transformation of retail—a journey marked by challenges, adaptation, and reinvention.
Why are so many Macy’s stores closing?
Macy’s is closing stores due to changes in consumer behavior, rising e-commerce competition, and the high costs of operating underperforming locations. The goal is to optimize profitability and focus on growth areas.
Which states have the most Macy’s closures?
States with extensive mall networks like California, Illinois, Florida, and New York have been among the most affected by Macy’s store closures. However, stores in other regions are closing as well, depending on local market conditions.
How can I find out if my local Macy’s is closing?
The best way to confirm is by checking official Macy’s press releases, contacting your local store, or monitoring local news outlets. Updated lists are typically published during major closure announcements.
What happens to the spaces left vacant by Macy’s?
Many former Macy’s spaces are being repurposed by mall owners for uses such as entertainment venues, retail redevelopments, or community centers. Some remain vacant while plans are developed.
Is Macy’s going out of business completely?
No, Macy’s is not shutting down entirely. The company is closing select locations but investing in digital channels, new smaller store formats, and flagship renovations to sustain its business.
Are employees affected by Macy’s closures?
Yes, store closures usually result in layoffs for the staff affected, although Macy’s may sometimes offer transfers to other stores or provide severance packages as part of their transition support.
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