Department stores have finished their 2025 holiday season and are regrouping by slashing product prices and also closing underperforming stores to cut costs.
Retailers are hoping to start the year with higher sales, though fashion industry executives have said they are not confident about performance for 2026.
A recent survey showed 46% of fashion executives expected industry conditions to worsen in 2026, compared to 39% in 2025, according to the 2026 Business of Fashion — McKinsey State of Fashion Executive Survey released by consulting firm McKinsey & Company.
Only 25% of those surveyed believed industry conditions would improve, which was an improvement over 20% in 2025.
Fashion industry expects challenging year
Fashion executives believe the year will be “challenging” with tariffs expected to be the No. 1 problem to deal with, the survey said.
To cut costs, several department store chains already closed stores in 2025, with J.C. Penney closing about eight and Nordstrom dumping a couple.
Marshall’s shuts down stores
Marshall’s already started closing stores in 2026, shutting two stores located in Los Angeles and San Jose, Calif., before Jan. 5.
And now a major department store chain will close over a dozen stores in 2026 as part of a multi-year restructuring.
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Macy’s closes more locations
Huge department store chain Macy’s has revealed that it will close 14 locations in 11 states in 2026 as part of its “Bold New Chapter” restructuring plan, which it launched in 2024, Axios reported.
The historic retailer, founded in New York in 1858, two years ago said it would close up to 150 underperforming locations, including about 50 by the end of its 2024 fiscal year, according to a February 2024 Macy’s statement.
Retailer closed 66 stores in 2025
Macy’s closed 66 stores in 2025 and has not said whether it will close more than the 14 announced closures in 2026.
The stores on the 2026 chopping block include locations in La Mesa and Tracy, Calif., Atlanta, Glen Burnie, Md., Grandville, Mich., St. Cloud, Minn., Newington, N.H., Livingston and Ramsey, N.J., Amherst, N.Y., Raleigh, N.C., Tarentum, Pa., Corpus Christi, Texas, and Tukwila, Wash.
“In executing our strategy, we continue to review our portfolio and make careful decisions about where and how we invest, including closing underproductive stores and streamlining operations,” CEO Tony Spring said in a Jan. 8 statement on the company’s progress. “These decisions are not made lightly.”
More closings:
- Casual Mexican restaurant chain closes more locations
- 79-year-old national trucking company closes down, no bankruptcy
- 65-year-old Home Depot rival shutters business permanently
Macy’s offered employees affected by store closings the opportunity to transfer to stores remaining open, as well as severance and outplacement resources, Spring said.
The department store planned to reimagine its best stores, enhance customer service, expand its luxury business, and advance its supply chain capabilities.
Macy’s 14 stores closing:
- La Mesa, Calif.
- Tracy, Calif.
- Atlanta
- Glen Burnie, Md.
- Grandville, Mich.
- St. Cloud, Minn.
- Newington, N.H.
- Livingston, N.J.
- Ramsey, N.J.
- Amherst, N.Y.
- Raleigh, N.C.
- Tarentum, Pa.
- Corpus Christi, Texas
- Tukwila, Wash.Source
Macy’s is seeking a successful restructuring to avoid financial distress that can lead to a bankruptcy filing, which its competitors J.C. Penney, Neiman Marcus, Lord & Taylor, and Sears could not avoid in recent years.
J.C. Penney and Neiman Marcus both filed for Chapter 11 protection in May 2020, Lord & Taylor filed for bankruptcy in August 2020, and Sears filed in October 2018.
Macy’s Inc. operates 424 full-size stores, 21 Macy’s small-format locations, and five freestanding Macy’s Backstage stores, according to its website. It also has 32 Bloomingdale’s, 25 Bloomingdale’s outlet stores, 4 Bloomie’s locations, and 174 Bluemercury stores.
Macy’s Inc. store count:
- 424 full-size Macy’s stores
- 21 Macy’s small-format locations
- 5 freestanding Macy’s Backstage stores
- 32 Bloomingdale’s
- 25 Bloomingdale’s outlet stores
- 4 Bloomie’s locations
- 174 Bluemercury storesSource
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