Empire State Review Team 
Macy’s Inc. announced plans to close 150 underperforming stores by the end of 2026 as part of its “Bold New Chapter” initiative, aimed at modernizing the brand and enhancing customer experience. This decision follows a challenging retail environment marked by declining sales and increased operational costs.
Strategic Store Closures and Investments
The closures will reduce Macy’s store count to approximately 350 locations nationwide. So far, 66 stores have been closed in 2025, with plans to shutter additional locations throughout the year. These closures are expected to generate between $600 million and $750 million in asset sales, primarily from real estate transactions. The company aims to reinvest these funds into its remaining stores and expand its luxury brands, Bloomingdale’s and Bluemercury.
In addition to store closures, Macy’s is remodeling 350 existing locations and introducing smaller-format stores to better align with changing consumer shopping habits. The company is also focusing on enhancing its digital presence and improving delivery times to meet customer expectations.
Challenges from Global Tariffs
Macy’s is facing challenges due to new U.S. tariffs on Chinese imports, which have increased costs for many retailers. Approximately 20% of Macy’s products were sourced from China as of early 2025. In response, the company is reducing its reliance on Chinese imports by renegotiating supplier contracts, canceling or delaying orders, and exploring alternative sourcing options. These measures are expected to impact gross margins by 0.2 to 0.4 percentage points this fiscal year.
Financial Performance and Outlook
Despite these challenges, Macy’s reported better-than-expected first-quarter earnings, with adjusted earnings of $0.16 per share surpassing analyst expectations of $0.15, and revenue reaching $4.8 billion versus the projected $4.4 billion. However, the company lowered its full-year profit guidance due to consumer spending slowdowns, tariffs, and a more promotional retail environment. Macy’s now expects adjusted earnings per share between $1.60 and $2.00, down from earlier guidance of $2.05 to $2.25. The company maintained its sales forecast at $21–$21.4 billion, with a projected same-store sales decline of 0.5% to 2%.
Focus on Core Brands and Digital Transformation
Macy’s continues to focus on its core business, investing in its go-forward stores, and adapting to the evolving retail landscape. The company is enhancing its digital capabilities to provide a seamless shopping experience across channels and is prioritizing investments in its high-performing locations. These efforts are part of Macy’s broader strategy to navigate the current retail challenges and position itself for long-term growth.
