Macy’s is closing approximately 150 “underproductive" stores throughout 2026 in a bid to return the company to enterprise growth.

Describing its plans as a “bold new chapter” in its history, the American department store said it would aim to challenge the status quo in its efforts to “fundamentally reposition” the company.

The retailer is also planning to update its product assortment to improve relevance and value and modernise its stores.

The company said that accelerating luxury growth by expanding its store network and digital presence would see it take advantage of its leadership position in the market, adding that Bloomingdale’s and Bluemercury had been outperformers within its portfolio and across the broader luxury landscape.

Additionally, Macy’s is opening 15 Bloomingdale’s nameplate stores and at least 30 new Bluemercury stores.

It also revealed plans to remodel around 30 Bluemercury stores in new and existing markets over the next three years.

Under plans to simplify and modernise its end-to-end operations, Macy’s plans to “rationalise and monetise" its supply chain asset portfolio, streamline fulfilment, improve inventory planning and allocation, and deliver a scalable technology platform over the next three years.

As the changes get underway, the company said it anticipates achieving low-single-digit annual comparable owned, licenced and marketplace sales growth; annual Adjusted EBITDA dollar growth in the mid-single-digit range; and a return of free cash flow to pre-pandemic levels beginning in 2025.

“We are making the necessary moves to reinvigorate relationships with our customers through improved shopping experiences, relevant assortments and compelling value,” said Tony Spring, chief executive officer at Macy’s. “Our teams are energised by the work ahead as we accelerate our path to market share gains, sustainable, profitable growth and value creation for our shareholders.”

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