Macy's turnaround hits "inflection point" — by getting smaller
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Macy's executives said Wednesday the company's turnaround is working. Photo: Lane Turner/The Boston Globe via Getty Images
Macy's Inc. says its turnaround has hit an "inflection point," returning to growth after years of decline.
Why it matters: The company is testing whether the department store model can survive by getting smaller.
Driving the news: Macy's executives said Wednesday the turnaround is gaining traction, driven by stronger "go-forward" stores and digital — even as the company extends its timeline for closing weaker locations.
By the numbers: Comparable sales — a key measure tracking existing stores and online — rose 1.8% in Q4 and 1.5% for the year.
- Its Bloomingdale's luxury brand was a standout, with +9.9% comparable sales in Q4 and its best holiday performance on record.
- Sales declines were tied to store closures, not weakening demand, officials said.
Catch up quick: Macy's said in 2024 it would close about 150 stores by 2026 as part of its "Bold New Chapter" strategy — a timeline it has now extended through 2028.
- The company has already closed dozens of stores, including 64 locations in 2025 as part of its turnaround.
- Macy's said in January it would close 14 more stores in 2026 while investing in its strongest locations, and plans to close roughly 65 more through 2028.
The big picture: Macy's is shifting toward a smaller "go-forward" fleet of stronger stores. The company is targeting about 350 namesake locations long term — down from more than 800 stores at its peak in the late 2000s.
- Its revamped "Reimagine" stores — now expanding to 200 locations — account for about 75% of go-forward sales.
Yes, but: The strategy isn't fully proven — and the backdrop is uncertain.
- Macy's expects flat to slightly negative comparable sales in 2026, underscoring a cautious outlook.
- "Our guidance reflects this tension between how good we feel about our strategy… and the level of uncertainty," CEO Tony Spring said during the earnings call.
What we're watching: Macy's is trying to replace scale with focus — even as executives say they "intend to be a growth company."
- The strategy isn't universal: Kohl's recently said it has no plans for broad store closures, even as it struggles to drive traffic.
- Macy's executives say they'll keep closing underperforming stores while investing in upgraded locations and technology — aiming to build a more "focused, resilient" company.
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