Macy's is slowing down the pace of its nationwide store closures, pushing the timeline back by two full years. The New York City-based retailer's chief financial officer delivered the update during the company's fourth quarter 2025 earnings call on Wednesday morning.
CFO Tom Edwards said Macy's still plans to shutter approximately 65 more locations to complete 150 total closures originally announced in early 2024, but the company now expects those remaining closures to stretch through 2028 rather than wrapping up by the end of 2026. The department store chain, founded in 1858, is leaning on balance sheet flexibility to maximize the value of the real estate it plans to exit.
According to The U.S. Sun, Edwards framed the decision as a matter of financial discipline. "With our strong balance sheet and cash flow generation, we can be flexible on the timing of transactions," he said. "To maximize the value of remaining assets, we now expect closures through 2028."
The retail giant first unveiled its "Bold New Chapter" strategy at the beginning of 2024. Under that plan, Macy's is committed to permanently shutting down 150 locations through 2026 — stores that represent roughly 25% of the company's total square footage but account for under 10% of total sales. The math was straightforward: cut the dead weight and reinvest in what works.
In January, Macy's announced it would close 14 underperforming stores during the first quarter of this year. Those locations span the country, from La Mesa, California, to Tukwila, Washington, and include stores in Atlanta, Georgia; Raleigh, North Carolina; Livingston and Ramsey, New Jersey; and several other cities. The remaining 350 "go-forward" stores are the ones Macy's is betting its future on. These are the locations receiving investment dollars, upgraded shopping experiences, and modernized assortments designed to win back customers who have drifted toward e-commerce or competitors.
CEO Tony Spring used Wednesday's call to highlight the expansion of Macy's "Reimagine" program. While 125 stores were originally designated as "Reimagine" locations, an additional 75 stores are being added to the roster. Spring referred to the expanded group as the "Reimagine 200."
"Earlier this year, we introduced initiatives to an additional 75 locations, creating the 'Reimagine 200,'" Spring said. "Now, nearly 60% of our 'go-forward' Macy's store base has the full suite of initiatives, accounting for roughly 75% of our 'go-forward' Macy's store sales and delivering meaningful scale to our overall business." The revamped stores are reportedly seeing higher traffic and better sales results compared to the broader Macy's chain. Spring expressed confidence in these locations, stating, "We are confident in the 'Reimagined' locations' ability to deliver profitable growth."
Spring did not shy away from ambitious language when describing the company's direction. "A Bold New Chapter serves as a strong call to action. It challenges the status quo to create a more modern Macy's, Inc.," he said. He added that the company is "making the necessary moves to reinvigorate relationships with our customers through improved shopping experiences, relevant assortments and compelling value."
The CEO also pointed to internal momentum. "Our teams are energized by the work ahead as we accelerate our path to market share gains, sustainable, profitable growth, and value creation for our shareholders," Spring said. That language is clearly aimed at investors looking for signs that the turnaround is more than a cost-cutting exercise.
For those keeping score, here is the list of the 14 stores announced for closure in the first quarter of this year:
The decision to extend the closure timeline is worth watching closely. On one hand, it signals that Macy's believes it can extract more value from its remaining real estate by being patient rather than rushing fire-sale exits. On the other hand, skeptics may wonder whether the delay reflects softer demand for retail real estate or an inability to execute as quickly as promised.
From a free-market perspective, Macy's is doing what any rational company should do: shedding underperforming assets and concentrating capital where returns are highest. The fact that stores representing a quarter of total square footage generate under 10% of sales tells you everything about the inefficiency that has accumulated over decades. Trimming that fat is long overdue.
The bigger question is whether the "Reimagine" strategy can actually produce durable growth or merely delays the inevitable reckoning facing legacy department stores. Macy's is betting that upgraded experiences and curated merchandise can pull customers back into physical stores. If the numbers at the Reimagine 200 locations hold up — higher traffic, stronger sales — that bet could pay off handsomely for shareholders willing to be patient through 2028 and beyond.