Macy's confirms closure of 66 stores including locations in downtown Sacramento and Citrus Heights

In early 2025, Macy's announced the closure of 66 locations as part of a strategy to enhance their retail footprint. This decision aligns with a broader initiative to shut down 150 underperforming stores by 2026, aiming to narrow their operations to around 350 active locations. The closures primarily affect metropolitan areas, with notable locations in regions such as California, New York, and Georgia. Among the specific closures are the Macy's stores at Downtown Plaza in Sacramento and the Sunrise Mall in Citrus Heights, which have been part of the retail landscape for decades. The rationale behind these closures is rooted in Macy's attempt to pivot towards a more affluent customer base, with an intention to focus on higher-end brands like Bloomingdale's and Bluemercury. As CEO Tony Spring indicated, selecting stores for closure is not taken lightly; however, they are deemed underproductive and the company aims to redeploy resources to locations that are already yielding positive responses. Macy's strategic shift is essential to revitalize its sales, especially as competition from discount retailers has intensified. The retail sector has seen significant changes, with many consumers drawn to lower-cost options, which has pressured traditional department stores like Macy's. Despite these setbacks, Macy's maintains their stance to achieve sustainable growth. This plan is further complemented by the decision to invest in stores that show promise in attracting wealthier shoppers. The closures are expected to happen mostly in the first quarter of 2025, which will mark the beginning of a new chapter for Macy's. As the company maneuvers through these challenges, it has also been under scrutiny from activist investors, who have expressed concerns about its real estate value surpassing the company's overall worth. While the closures represent short-term pain, they are framed as necessary steps for long-term viability in a competitive retail environment. Community leaders have expressed mixed feelings about closures, with some pondering future development opportunities for these spaces. The impact of this significant restructuring initiative remains to be seen as Macy's adjusts to the new retail landscape.