Macy’s decision to close about 150 of its stores by early 2027 is set to trigger significant changes in shopping malls and communities nationwide. The retailer’s move, which represents a reduction of nearly a third of its namesake locations, will reshape the retail landscape and accelerate shifts in consumer behavior.
Announced in late February, the store closures will affect 25% of Macy’s gross square footage but account for less than 10% of the company’s sales. While the specific locations have not been disclosed, CEO Tony Spring stated that the closures are part of a strategic shift to focus on the approximately 350 Macy’s stores that will remain open. The company plans to invest in these stores and expand its footprint with higher-performing brands, including the upscale Bloomingdale’s and beauty chain Bluemercury.
The decision comes as online shopping continues to grow and demographic changes influence retail patterns. Small towns and some regions have struggled to sustain vibrant shopping centers, prompting Macy’s to reassess its physical retail presence.
The closures will serve as a catalyst for malls to adapt to these evolving consumer preferences. Chris Wimmer, a senior director at Fitch Ratings who tracks real estate investment trusts, suggested that Macy’s exit could ultimately benefit many malls. He noted that the closures would expedite the decline of “low quality malls” that are no longer viable, allowing healthier malls with better locations and stronger financial backing to revitalize their spaces.
In many cases, the departure of Macy’s will open up valuable real estate in prime mall locations. Owners of these malls are keen to repurpose these spaces for more relevant uses, potentially including medical facilities, retirement communities, or grocery stores, which may better align with current community needs.
However, not all locations will be easy to redevelop. Wimmer cautioned that some closed Macy’s stores might be in less desirable areas, making them difficult to repurpose and potentially leading to blighted properties. If these sites are in declining locations, they could become “eyesores” and exacerbate existing mall decay.
Macy’s own real estate strategy reflects a broader trend in retail, where physical store footprints are shrinking in favor of enhanced online and specialized shopping experiences. As the retail industry continues to evolve, the impact of these closures will likely be felt across the retail sector and in the communities where these changes occur.
