Macy's is closing one-third of its stores — and growing anyway

Official homepage:https://www.macys.com

Introduction

America's largest department store is closing roughly 150 locations — about one-third of its fleet — while, according to its public earnings disclosures, posting its strongest comparable-sales growth in several years.

Macy's reported fiscal 2025 net sales of $21.8 billion, with comparable sales up 1.5% — a return to annual comp growth. In Q1 fiscal 2026, comps rose 3.0%, and in Q2, 1.9%, with management raising full-year guidance to $21.15–21.45 billion.

A shrinking footprint, a growing business

• Fiscal 2025: Net sales $21.8B; comps +1.5%.

• Q1 fiscal 2026: Sales up 1.8% to $4.7B; comps +3.0%.

• Q2 fiscal 2026: Revenue $5.0B, down 1.9% — a decline the company attributes largely to store closures, which removed roughly $170M from the year-ago comparison. Comps +1.9%.

Key Insight: The revenue decline is largely planned — stores are being closed while the remaining business grows. Comparable sales tell the story better than headline revenue.

The Bold New Chapter playbook

Announced in February 2024, the strategy has three pillars:

1. Close ~150 underproductive stores by end of 2026 (66 closed in 2025; 14 more announced for 2026 across 12 states); invest in roughly 350 go-forward stores, including ~200 being remodeled with upgraded staffing and fresher inventory.

2. Accelerate premium categories — prestige beauty, fine jewelry, designer fragrance.

3. Modernize operations across supply chain, fulfillment, and technology.

The remodeled stores outperformed the broader chain in recent quarters, according to company disclosures.

Where the growth comes from

• Prestige beauty: consecutive quarterly comp growth, led by fragrance and skincare.

• Retail media: Macy's Media Network grew 12.5% in Q4 2025 on Amazon's ad technology; credit card revenue rose 22.4% to $153M in Q2.

The 2026 closure list

The 14 closures span 12 states: CA, GA, MD, MI, MN, NH, NJ, NY, NC, PA, TX, WA. Clearance sales typically run several weeks per store — something resellers and off-price buyers monitor closely.

What this means for sellers

1. DTC is absorbing department store demand. Closed stores push shoppers online and brand-direct.

2. Growth is concentrated in premium categories. Mid-market general merchandise is where most closures are happening.

3. Retail media is worth watching. Retailer ad networks are becoming an alternative to social ads.

4. Read comps, not headlines. Total revenue fell in Q2 while the underlying business improved.

In conclusion

The department store channel isn't disappearing — it's concentrating. Demand is moving upmarket, online, and toward fewer, better stores. Sellers who track that shift early tend to be better positioned for where the channel is heading.