Macy’s bags, bright red in color, have long meant more than a simple purchase. They are symbols of shopping trips and past seasons. Now, Macy’s to close 150 stores after sales drop $21.3 billion is a headline that deeply affects millions. They remember afternoons spent among racks of clothes. Many remember holiday traditions inside its sparkling stores. The decision sets the stage for sweeping change in how and where Americans shop for fashion.
Years of falling foot traffic, changing habits after the pandemic, and a consumer shift to online shopping left Macy’s with tough choices. Iconic locations from Los Angeles to smaller cities will soon join the growing list of retail spaces going dark. Deep clearance sales, up to 70 percent off, mark a bittersweet goodbye at many storefronts.
Macy’s bold move is more than a business story. It signals a new chapter for one of retail’s most familiar names, even as it bets big on its digital future. For shoppers, it’s a turning point—a reminder that the retail world can change overnight, reshaping how closets and traditions are built.
A Giant Reels: Macy’s Sales Drop $21.3 Billion in a Shifting Market
Macy’s to close 150 stores after sales drop $21.3 billion sums up the challenge facing department stores in 2025. The image of bustling aisles and festive windows feels distant as net sales dwindled, leaving companies rethinking their survival plans. What pushed the giant to make these sweeping changes? It comes down to numbers, shifting habits, and a retail world turned upside down by a global crisis.
From Shopping Bag to Balances: The Numbers Behind the Decline
Macy’s reported a net sales figure of about $21.3 billion for 2023, marking a steep 5.5% drop from the prior year. For a brand that once dominated mall corridors, this decline didn’t just trim profits, it shattered long-held confidence in the staying power of the department store model.
- Q1 2025 sales continued to fall—sliding nearly 2% compared to last year’s same period.
- Macy’s revised its profit outlook downward, recognizing the strain of not just consumer spending cuts but also rising costs from global trade tariffs.
- The retailer’s valuation on the stock market has plummeted, reflecting waning faith from customers and investors alike.
The slide didn’t start overnight. Even before 2020, malls watched traffic thin and Macy’s faced tough competition from discount and online brands. When the pandemic hit, crowded stores emptied almost overnight, accelerating a decline already years in the making.
External pressures piled on. Higher operational costs, supply chain issues, and stiff competition from nimble digital-first brands all played roles. Yet nothing foreshadowed just how quickly pandemic changes would push even long-standing retailers toward drastic cuts.
How Consumer Behavior Left Aisles Empty
Throughout the pandemic, millions formed new shopping habits that stuck. Online sales soared by over 40% in 2020, and by 2025, digital transactions made up well over 40% of retail activity. Families now click and buy with the same ease they once tossed jeans into a shopping cart.
Mall foot traffic didn’t just dip, it cratered. Shoppers choosing “buy online, pick up in store” left plush carpeted aisles emptier than ever. Social distancing shifted comfort levels, and even as restrictions lifted, the convenience of home delivery became a treasured routine.
Key habits that changed the game for Macy’s include:
- Fewer in-person shopping trips, especially for non-essential items like clothing and home goods.
- Growing demand for curbside pickup, home delivery, and streamlined digital checkout.
- A focus on price, convenience, and speed, all powered by strong e-commerce platforms.
The traditional “shopping day out” has turned into careful price checks, digital wish lists, and one-click orders. For Macy’s, which built its brand on the physical in-store magic, these new habits have left racks full and checkouts quiet.
Couple this with broader economic worries and inflation, and you have shoppers holding tighter to every dollar. Macy’s to close 150 stores after sales drop $21.3 billion is as much about digital disruption as it is about the deep, human comfort with new habits—ones not even a major retail icon could stop.
The “Bold New Chapter” Strategy: Shrinking Stores, Strengthening Digital
Macy’s to close 150 stores after sales drop $21.3 billion is more than a headline—it’s the pulse of a sweeping transformation. As shopping tastes change and online orders outpace in-mall browsing, Macy’s is reshaping its future from the ground up. The “Bold New Chapter” strategy focuses on cutting back on underperforming stores while doubling down on digital growth and fresh thinking in customer experience.
Major Store Closures and Clearance Sales
Macy’s has launched its largest wave of closures in decades, targeting about 150 stores—nearly half its footprint—for shutdown by the end of 2026. The first cuts include 66 locations closing in 2025 alone, hitting both bustling cities and regional malls from New York and California to Florida and Arizona.
Some iconic names are on this list: shoppers in Los Angeles will soon say goodbye to Macy’s at Broadway Plaza, and the historic downtown Brooklyn store is also slated for closure. Many of these soon-to-be shuttered stores are legacy stops that anchored malls for a generation but have seen customer numbers drop year over year.
For shoppers, this new chapter brings deep discounts and clearance events. As Macy’s liquidates inventory, you’ll find markdowns on everything from designer dresses to fine jewelry and small appliances. Many stores are advertising up to 70% off, inviting bargain hunters to snap up premium items at a fraction of the price.
What does this mean for regular customers?
- Access to rare deals on name-brand apparel, beauty products, home goods, and electronics
- A final chance to visit beloved neighborhood stores before doors close for good
- The bittersweet nostalgia of watching a familiar retail landscape change, one storefront at a time
For savvy shoppers, clearance sales are a golden opportunity. But for communities that grew up with Macy’s, it’s also the end of an era and a sign that shopping habits really have changed.
Leadership’s Perspective and Industry Insights
It’s not just about closing stores. Macy’s CEO Tony Spring calls the Bold New Chapter strategy an opportunity to sharpen focus where it matters most. According to Spring, cutting underperforming locations frees up money and talent to modernize thriving stores and elevate digital shopping.
Spring shared that redesigned Macy’s stores—those updated with better customer service, fresh layouts, and enhanced product selections—have already started outperforming others. Early results show reimagined locations seeing sales gains, proving that focused investment in the right places makes a difference.
Here’s how Macy’s is reallocating resources:
- Investing $600M–$700M to refresh the 350 highest-potential stores, improving layouts and service
- Rolling out about 30 new Bluemercury beauty shops and 15 Bloomingdale’s department stores with an emphasis on luxury and experience
- Opening smaller-format Macy’s stores outside traditional malls, closer to where people actually live and work
But digital isn’t taking a back seat. In fact, it’s the new front door. Macy’s is pouring energy into better e-commerce sites, faster checkout, and personalized offers. Spring highlights the importance of seamless online shopping and loyalty perks (like Star Rewards) to keep shoppers clicking. The ultimate goal: meet customers wherever they want to shop, whether they’re browsing a mobile app at home or picking up an order curbside.
This approach isn’t unique to Macy’s. Across the retail sector, others like Nordstrom and Kohl’s have trimmed store counts and revamped digital strategies in a bid to keep up. Department stores everywhere face a simple truth: bigger isn’t always better. To survive, they must become more nimble, focusing on profitable stores and building an irresistible digital presence.
Macy’s to close 150 stores after sales drop $21.3 billion sounds harsh, but in Tony Spring’s words, “When we invest in the customer experience, we can grow sales.” The future of shopping is still taking shape, and Macy’s hopes its next chapter will be written, one click and premium storefront at a time.
What This Means for Clothes Shoppers: Loss, Change, and Opportunity
The story of “Macy’s to close 150 stores after sales drop $21.3 billion” reaches far beyond just lost storefronts and numbers. For clothes shoppers, these closures run deep, stirring feelings of nostalgia while shaking up old habits. There’s a sense of loss, but also moments of real chance—last licks at deals, new places to browse, and fresh ways to shop from home. The fabric of shopping is changing, and everyone who loves finding that perfect sweater or dress will feel it next season and beyond.
Shopping Local: The Vanishing Department Store Experience
Macy’s has meant more than racks of shirts or mannequins in tinsel and bows. For many shoppers, department stores have been a backbone of the yearly routine—spotlights for back-to-school, prom, Mother’s Day, and every holiday season in between.
For those searching the aisles for clothes, it wasn’t just about buying a pair of jeans.
- Friends met here to wander and gossip among displays.
- Families made it a tradition, a comforting ritual tied to memory and place.
- Teens got their first taste of independence trying on outfits for milestone dances.
When these stores close, that social heartbeat disappears. Nearby malls lose a neighbor, street corners fall quiet, and families may need to venture farther for a similar shopping trip. The change breaks up daily rhythms, making it harder to browse, touch, and really see new styles in person.
The closures mean more than lost shelves—it’s the fading of community spots where people gathered, browsed, and found a bit of themselves between the fitting rooms.
Seizing Deals During Liquidation Events
Closures bring a silver lining for bargain hunters: deep discounts as stores clear out inventory—sometimes even up to 70% off. These liquidations are full of chance, urgency, and, at times, confusion.
To make the most of these deals:
- Go early for best selection—top brands and popular sizes often disappear first, scooped up by shoppers who know to move fast.
- Check regularly—discounts often start around 40% and may deepen closer to the final weeks, though the shelves will thin out.
- Know the policy—during closing sales, store coupons and rewards like Macy’s Star Money usually can’t be used. Returns might not be accepted either.
- Watch for markdowns on apparel, shoes, and smaller goods—high-end items or premium brands sometimes get removed before the sales start.
If you love the hunt, these events are a last great sprint through Macy’s aisles. It’s equal parts treasure hunt and chance to say goodbye. You might snag a designer jacket at a fraction of the cost, but remember: when the racks stand empty, the deals disappear for good until the next wave of retail change.
Adapting to Macy’s Digital Future
With more stores closing, Macy’s is betting that shoppers will follow them online. Their website and app have seen fresh upgrades, with promises of easier navigation, tailored deals, and more brands than ever before. Shopping from home means one thing for sure: you never have to hunt for parking or wait in line at the register.
Here’s how current shoppers can make the most of Macy’s new direction:
- Create an account on the Macy’s site or app for updates on flash sales and special promotions.
- Sign up for notifications to get early alerts about new arrivals, exclusive online-only stock, or restocked sizes in your favorite brands.
- Use digital features like Style Inspirations, virtual try-ons, and lifestyle lookbooks to help you find new outfits without leaving your couch.
- Take advantage of services such as free shipping (often tied to minimum purchases), curbside pickup, and a more flexible return process for online orders.
Macy’s has also rolled out new online loyalty perks, making it easier to cash in Star Rewards and find exclusive online events. The company promises more personalization to meet each shopper where they are—whether on a phone in bed or a laptop during a lunch break.
As the classic department store retreat fades, a new digital window opens. These next seasons will look different, but for clothes shoppers willing to click, scroll, and try something new, opportunity is just a tap away.
Behind the Shift: Why Traditional Retail Faces a Reckoning
It’s taken years for department stores like Macy’s to reach this point, but the “macy’s to close 150 stores after sales drop $21.3 billion” headline is not a surprise to anyone watching the clothes shopping world. The collapse of one of America’s most recognizable brands is the echo of a much wider transformation. Traditional stores are closing, malls are becoming emptier, and shoppers’ priorities are changing fast. This is a story rooted in changing lifestyles, faster technology, and the desire for something different whenever we open our wallets.
Retail Havens No More: Mall Closures and Retail Evolution
A generation ago, the shopping mall was a place of excitement—bright skylights, endless racks, and the rush of people comparing deals. For many, Macy’s anchored this world, offering must-have styles and festive magic every season. But step inside any mall today and you’ll notice the hum is gone. Empty storefronts, “For Lease” signs, and long hallways are now common across America.
The fall of the mall is everywhere:
- Over 15,000 stores across the US are expected to close in 2025, more than double last year’s count.
- Department stores, once the kings of retail, are being forced to shutter hundreds of locations as shoppers go elsewhere.
- Mall vacancy rates have reached nearly 9%, leaving ghostly corridors in towns that once rallied around “mall culture.”
This shift traces back decades, sped up by economic pressures like higher inflation and rising interest rates. When inflation hit over 9% in 2022, it pushed up retail costs and cut into household budgets, making non-essential shopping tougher for families. Department stores with heavy debt and slow-to-adapt models, like Macy’s, found themselves squeezed harder than ever.
But this isn’t a simple story of decline; it’s about change. The spaces old department stores leave behind aren’t always staying empty. Developers and local leaders are turning them into mixed-use centers—adding gyms, medical clinics, food halls, housing, or even schools. Where a Macy’s once stood could soon be a place to work out or visit the doctor.
As the store experience fades, new places and formats are growing. Discount retailers like TJ Maxx, Ross, and Aldi have grabbed a growing share, catering to price-conscious shoppers who used to roam the mall. Smaller, flexible stores closer to where people live are now the new thinking, wrapped around everyday needs and community rhythms.
Looking ahead, the classic mall-based model will keep shrinking. What’s left will be specialty stores, entertainment-focused spaces, and luxury outlets that offer something online shopping can’t: personal connection or entertainment. The age of wandering the mall on a Saturday is slipping away for most American families.
Online Shopping’s Takeover: Convenience, Comfort, and Change
If mall closures explain what’s being lost, the real why behind “macy’s to close 150 stores after sales drop $21.3 billion” is no secret. Shopping has moved online—fast, easy, and 24/7. Retailers who missed this wave or moved too slowly watched customers click away for good.
Clothes shopping now happens wherever you are:
- E-commerce has soared to about 16% of total US retail sales from 11% only five years ago, and it keeps growing with every smartphone upgrade.
- Major platforms like Amazon, Shein, and Temu keep prices low, trends quick, and delivery rapid, taking big bites out of traditional store traffic.
- Home delivery, buy-online-pickup-in-store, and curbside services became lifelines during the pandemic and are now permanent habits.
Shoppers love the control online shopping gives. You can compare prices, read reviews, save favorites, and get notified when things go on sale or restock—no walking required. For clothes, there’s less pressure and more time to decide from the comfort of home.
This shift created new winners and losers. Macy’s isn’t the only department store racing to adapt. Kohl’s, J.C. Penney, and even high-end brands are closing locations and overhauling online experiences to meet customers where they are. Losses spread across the industry—but for those able to double down on digital, there’s a path forward.
The emotional side matters, too. Mall trips used to be part of special moments—a prom dress hunt, back-to-school ritual, or just searching for inspiration. Now, with a phone or tablet, anyone can dress for a new season, refresh a closet, and find style inspiration right from their couch.
But the competition for attention and loyalty never stops. Brand loyalty is harder to maintain when shoppers hop between tabs for the lowest price or fastest shipping. This means retailers must constantly find ways to keep shoppers interested: loyalty programs, tailored offers, and fast, easy returns.
Online shopping isn’t just a Macy’s issue—it’s set the new course for fashion and beyond. Those who adapt can hold onto loyal fans, but those who don’t will keep disappearing from the map, leaving only memories behind. For shoppers, the mall is fading, but the wardrobe is still only a click away.
What Comes Next for Macy’s and Retail Shopping?
The headline, “macy’s to close 150 stores after sales drop $21.3 billion,” marks a major turning point, not just for the brand but for how Americans will shop in coming years. Macy’s journey echoes the larger shakeup in retail, where tradition faces off against technology, and shoppers push stores to change faster than ever before. So, what does the future actually look like—for Macy’s and for anyone who loves picking out clothes that fit their life and style?
Flagship Stores and Experience Centers: A New Role for Macy’s Icons
Even as Macy’s trims locations, the company signals it won’t abandon its most famous stores. Think of the Herald Square flagship in New York or massive outposts in city centers. These will serve as anchors—less about racks and registers, more about experience.
Industry experts predict these flagship stores could become experience centers, designed for more than just shopping:
- Interactive displays and events: Expect virtual styling sessions, holiday workshops, and even art installations.
- Luxury and exclusives: Macy’s is likely to feature capsule collections from rising designers they partner with, giving shoppers access to something unique.
- In-store technology: From virtual try-on mirrors to interactive kiosks, the digital world will bleed into the in-person one, helping blend online perks with in-hand browsing.
By focusing on these iconic spaces, Macy’s positions itself as both a historic destination and a test site for what the future of shopping could feel like. Think of it as a modern-day town square—still a meeting place, just with more screens and style than before.
Digital Growth and Smaller, Nimble Stores
The steep sales drop and closures have forced Macy’s to rethink how and where it operates. Now, Macy’s is investing heavily in:
- Smaller stores placed in community locations: Rather than big mall anchors, new stores show up in areas where customers already live, work, or relax.
- E-commerce expansion: The brand is doubling down on digital with faster websites, smarter recommendations, and exclusive online drops. For many, the Macy’s experience is now only a screen tap away.
- Personalization with AI: Shopping habits drive the new Macy’s. By learning from what you browse or buy, Macy’s tailors deals, emails, and suggestions to keep customers coming back.
What’s happening at Macy’s isn’t isolated—other retailers are following this nimble, local-driven approach, pairing physical downsizing with digital growth.
Talent, Trends, and a Sustainable Future
To stay relevant, Macy’s is also reaching out to the next generation of style creators. Industry insiders point to partnerships with emerging designers, industry-connected programs, and investments in scholarship funds. These aren’t just publicity moves—they help Macy’s introduce new trends and fresh ideas, both online and in stores.
- Emerging designers: Expect more exclusive capsule drops and collaborations, fueled by Macy’s talent incubators.
- Sustainable offerings: The push for eco-friendly and even second-hand clothing is growing. As shoppers focus on longevity and value, Macy’s looks to expand in these areas, joining a larger movement toward conscious fashion.
The Ripple Effects Across Retail
The wave of store closures across the country is bigger than any single brand. As Macy’s contracts, malls lose anchors, local shopping habits shift, and some communities may see their options shrink. At the same time:
- Discount retailers and boutiques might see opportunity, snapping up customers seeking affordable finds or unique styles.
- Commercial real estate faces big changes as empty stores make way for new uses—think urban development, health clinics, or even pop-up experiences.
Traditional retailers must keep evolving or risk getting left behind. Even giants like Macy’s must keep pace with surges in online shopping, high inflation, and shoppers who expect something fresh with every visit—digital or in-person.
Reflecting on Your Place in the Shift
The closing of so many Macy’s stores is both a challenge and a chance. Do your shopping routines revolve around tradition or speed? Would you trade window shopping for one-click deals? Are you drawn to sparkly flagship floors or do you prefer browsing from the couch?
No matter how you answer, the trend is clear. “macy’s to close 150 stores after sales drop $21.3 billion” is shaping new seasons of shopping across America—and every shopper is a part of this change, ready or not. As new ideas replace old habits, the future of Macy’s and retail shopping may come down to one thing: making every experience, online or off, memorable enough to come back for.
Conclusion
Macy’s to close 150 stores after sales drop $21.3 billion marks more than just another corporate shift—it’s a sign of deep change across how Americans buy their clothes. As store lights dim in once-busy malls, shoppers say goodbye to the familiar rituals of browsing aisles and greeting local sales associates. These closures are personal for many, tugging at memories and marking the end of longstanding routines.
Despite these closures, it is clear there is still an urge to adapt. Businesses are finding new ways to serve customers. Macy’s is seeking to meet customers with better online experiences and more thoughtful service. The company’s future will depend on balancing cherished tradition with practical innovation. It must also build trust as it discovers new ways for people to connect with fashion.
How we shop is evolving. We’re moving away from the classic department store, and shopping is now all about screens, smaller stores, and flagship destinations. However, the heart of clothes shopping will continue to survive. New shopping habits are going to blossom, fueled by memory and hope. It’s up to each individual shopper to contribute to shaping the future. Thanks for reading. Share your thoughts or your favorite Macy’s memories for a chance to help shape the future of shopping.
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