Macy’s decision to close nearly a third of its stores will spark change in malls and communities across the U.S.
Some of those transformations may catch shoppers by surprise.
The retailer said in late February that it plans to close about 150 of its namesake locations by early 2027. Macy’s has not yet revealed which stores it will shutter. When CEO Tony Spring announced the move, he said the stores that Macy’s will close account for 25% of the company’s gross square footage but less than 10% of its sales.
The company plans to invest more in the approximately 350 namesake stores that will remain, and open new locations for its better-performing brands: higher-end department store Bloomingdale’s and beauty chain Bluemercury.
Yet the closures will be the latest catalyst that pressures malls to evolve to changing consumer tastes. Macy’s is shuttering stores as the growth of online shopping and demographic shifts mean some small towns or regions can no longer support a bustling shopping center.
Macy’s closures will ultimately be a good thing for many malls and customers, said Chris Wimmer, senior director at Fitch Ratings who tracks real estate investment trusts. The department store’s exit will accelerate the inevitable demise of “low quality malls that really don’t need to exist anymore,” Wimmer said. The closures will give the owners of healthier malls a chance to breathe new life and relevance into a shopping center.