Macy’s Inc. is implementing a comprehensive restructuring plan to reverse years of declining foot traffic and shrinking profits, aiming for $2.5 billion in additional annual sales by 2027. The initiative includes closing 150 underperforming stores and investing heavily in e-commerce and digital personalization.
- Macy’s plans to close 150 stores by 2027, reducing its footprint by 18%
- A $1.2 billion investment in digital and supply chain technology is central to the turnaround
- E-commerce sales are projected to grow from 32% to 45% of total revenue by 2027
- Company aims for $2.5 billion in new annual sales by 2027 to stabilize financial performance
- Same-store sales across the department store sector declined 6.3% in the 12 months through Q3 2025
- Macy’s adjusted EBITDA rose 14% in Q3 2025, signaling early operational improvement
Macy’s Inc. is betting its future on a bold revival strategy designed to stabilize one of America’s most iconic retail brands. The company announced a multi-year plan to close 150 locations—representing roughly 18% of its current store footprint—by 2027, focusing instead on optimizing its remaining 750 stores and expanding its digital platform. The move comes as the broader department store sector continues to contract, with same-store sales declining 6.3% across the industry in the 12 months ending Q3 2025. At the core of the turnaround is a $1.2 billion investment in technology and supply chain modernization. This includes deploying AI-driven inventory systems, enhancing mobile app functionality, and launching personalized product recommendations. As part of the strategy, Macy’s expects to increase its e-commerce sales share from 32% in 2024 to 45% by 2027. The company also plans to rebrand 300 locations with updated store layouts and extended hours, particularly in suburban and mid-tier markets. Financially, Macy’s reported a net loss of $480 million in fiscal 2024, primarily driven by markdowns and restructuring charges. However, adjusted EBITDA improved by 14% in Q3 2025, signaling early traction. Analysts are watching closely, as the company must generate $2.5 billion in incremental revenue over the next two years to justify the investment and maintain investor confidence. The success of Macy’s strategy could have ripple effects across the retail sector, influencing how other department store operators like J.C. Penney and Belk reposition themselves. Investors have responded cautiously, with Macy’s stock up 11% year-to-date as of December 14, 2025, suggesting some market optimism but also ongoing skepticism about the pace of recovery.