The storied department store chain Macy's is pressing forward with its dramatic restructuring, announcing this week that 14 more locations will shutter in early 2026. Clearance sales are set to begin mid-January, with most stores expected to close within 10 weeks.

The closures represent the latest phase of what Macy's calls its "Bold New Chapter" strategy—a turnaround plan unveiled in 2024 that aims to close approximately 150 underperforming stores over three years while reinvesting in its remaining 350 locations.

Which Stores Are Closing?

The 14 doomed locations span 12 states, including:

  • California: La Mesa (Grossmont Center), Tracy (West Valley Mall)
  • Georgia: Atlanta (Northlake Mall)
  • Maryland: Glen Burnie (Marley Station)
  • Michigan: Grandville (Rivertown Crossings)
  • Minnesota: Saint Cloud (Crossroads Center)
  • New Hampshire: Newington (Fox Run)

Additional closures are planned in New Jersey, Ohio, Pennsylvania, and other states. Last year alone, Macy's closed 66 stores as part of this initiative.

A Strategy Born of Necessity

The "Bold New Chapter" plan is designed to return Macy's to sustainable, profitable sales growth. The strategy involves:

  • Closing approximately 150 underproductive stores through fiscal 2026
  • Reinvesting in 350 "go-forward" Macy's locations
  • Upgrading 125 stores through the "Reimagine" program with enhanced merchandising and customer experience
  • Focusing on the company's stronger brands: Bloomingdale's and Bluemercury

"We are focused on strengthening Macy's as a bold retail brand with a healthy store fleet and strong digital business."

— Macy's Inc. Corporate Statement

Signs of Life Amid the Closures

Paradoxically, the closures come as Macy's shows its strongest performance in years. In December, the company—which includes Bloomingdale's and Bluemercury—reported its strongest comparable sales growth in more than three years.

The 125 "Reimagine" stores have been particularly successful, achieving comparable sales growth of 2.7 percent and consistently outperforming the overall Macy's department store chain. This suggests the strategy of closing weaker stores while investing in stronger ones may be working.

Macy's stock has reflected this optimism, jumping nearly 48 percent over the past 12 months—a remarkable turnaround for a company many had written off.

The Broader Retail Reckoning

Macy's is far from alone in shrinking its physical footprint. Major retailers planning store closures in 2026 include:

  • Kroger: Closing multiple locations as it focuses on smaller-format stores
  • Foot Locker: Continuing its "Lace Up" restructuring with additional closures
  • Carter's: Reducing its store count amid changing shopping patterns
  • Saks Global: Expected to file bankruptcy this month with potential store liquidations

The wave of closures reflects broader shifts in retail, including the continued growth of e-commerce, changing consumer preferences, and the lingering effects of pandemic-era shopping habit changes.

What It Means for Shoppers and Workers

For consumers in affected areas, the closures mean one less anchor tenant at already-struggling malls. The loss of Macy's often accelerates mall decline, as the department store typically serves as a traffic driver for smaller retailers.

For workers, Macy's has said it will offer transfer opportunities where possible, though many employees will face layoffs. The company has not disclosed total job losses from this latest round of closures.

The Investment Case

For investors, Macy's presents an intriguing contrarian opportunity. The company is essentially betting that a smaller, stronger store fleet combined with digital growth can deliver sustainable profitability.

Key metrics to watch:

  • Comparable sales growth: Whether the "Reimagine" stores continue outperforming
  • Margin improvement: Whether closing unprofitable stores boosts overall margins
  • Digital sales: The growth trajectory of online and omnichannel revenue
  • Real estate monetization: Value unlocked from owned properties

The 125-year-old retailer faces significant headwinds, but its willingness to make painful cuts—and early signs those cuts are working—suggest the "Bold New Chapter" may yet have a happy ending.