Macy’s Set to Close 66 Underperforming Stores, 10 in NY, NJ

Macy’s is slowly working through its plan to eliminate 150 underperforming stores from its portfolio. The first quarter of this year will bring nearly half of those closures, including close to a dozen in the tri-state area.

The department store announced the impending closure of 66 stores on Thursday. While specific dates weren’t provided, the stores are expected to close during the first quarter this year.

“Closing any store is never easy, but as part of our Bold New Chapter strategy, we are closing underproductive Macy’s stores to allow us to focus our resources and prioritize investments in our go–forward stores, where customers are already responding positively to better product offerings and elevated service,” Macy’s chair Tony Spring said in a statement.

The Bold New Chapter initiative was announced a year ago, projecting a plan to close 150 stores while investing in 350 locations.

The push to dispel select stores received a boost last year from an activist investor group — consisting of Joseph Sitt’s Thor Equities and Barington Capital Group — advocating for Macy’s to better monetize its real estate assets by forming a separate unit within the company.

In the company’s third-quarter earnings report, Macy’s pegged the value of the retail properties it would sell in 2025 at $275 million. CoStar has estimated that Macy’s properties are worth $5 billion to $14 billion.