Outline:
Department stores have concluded their 2025 holiday period and are now reorganizing by reducing product prices and shutting down poorly performing locations to minimize expenses.
Merchants are hoping to begin the year with increased sales, although executives in the fashion industry have expressed uncertainty regarding the performance for 2026.
A new survey revealed that 46% of fashion executives anticipate deteriorating industry conditions in 2026, up from 39% in 2025, as stated in the 2026 Business of Fashion — McKinsey State of Fashion Executive Survey published by a consulting firm.McKinsey & Company.
Only 25% of the people surveyed felt that industry conditions would get better, marking an increase from 20% in 2025.
The fashion sector anticipates a difficult year ahead.
Fashion leaders anticipate that the upcoming year will present difficulties, with tariffs identified as the primary issue to address, according to the survey.
To reduce expenses, a number of department store chains have already shut down locations in 2025, along withJ.C. Penneyclosing around eight and Nordstrom dropping a few
Marshall’s shuts down stores
Marshall’salready began closing stores in 2026, closing two locations in Los Angeles and San Jose, California, prior to January 5.
And currently, a large retail chain is set to shut down more than a dozen locations in 2026 as part of an extended plan to reorganize.
Macy’s closes more locations
A major retail chain, Macy’s, has announced that it plans to shut down 14 stores across 11 states in 2026 as part of its “Bold New Chapter” strategy, which was introduced in 2024.Axios reported.
A historic store, established in New York in 1858, announced two years ago that it planned to shut down as many as 150 poorly performing stores, with approximately 50 of those closures expected by the end of its 2024 fiscal year, as reported in February 2024.Macy’s statement.
Retailer shut down 66 locations in 2025
Macy’s shut down 66 locations in 2025 and has not announced if it plans to close more than the 14 previously mentioned closures for 2026.
The 2026 list of closing stores features locations in La Mesa and Tracy, California, Atlanta, Glen Burnie, Maryland, Grandville, Michigan, St. Cloud, Minnesota, Newington, New Hampshire, Livingston and Ramsey, New Jersey, Amherst, New York, Raleigh, North Carolina, Tarentum, Pennsylvania, Corpus Christi, Texas, and Tukwila, Washington.
“During the implementation of our strategy, we keep evaluating our portfolio and making thoughtful choices regarding our investments, such as closing stores that aren’t performing well and simplifying our operations,” said CEO Tony Spring on January 8.statementRegarding the company’s development. “These choices are not taken without careful consideration.”
More closings:
- Informal Mexican dining chain shuts down additional outlets
- A 79-year-old national trucking company shuts down without filing for bankruptcy
- A 65-year-old competitor of Home Depot closes its doors for good
Macy’s provided workers impacted by store closures with the chance to move to open locations, along with separation benefits and career transition support, according to Spring.
The retail company intended to restructure its top stores, improve client support, grow its high-end division, and move forward with itssupply 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 aiming for a successful turnaround to prevent financial difficulties that might result in bankruptcy, a fate that its rivals J.C. Penney, Neiman Marcus, Lord & Taylor, and Sears could not escape in recent years.
J.C. Penneyand both Neiman Marcus sought Chapter 11 protection in May 2020,Lord & Taylordeclared bankruptcy in August 2020, while Sears did so in October 2018.
Macy’s Inc.runs 424 full-size stores, 21 Macy’s smaller-format locations, and five standalone Macy’s Backstage stores, as stated on its website. It also operates 32 Bloomingdale’s locations, 25 Bloomingdale’s outlet stores, 4 Bloomie’s stores, and 174 Bluemercury locations.
Macy’s Inc. store count:
- 424 full-size Macy’s stores
- 21 Macy’s small-format locations
- 5 standalone Macy’s Backstage locations
- 32 Bloomingdale’s
- 25 Bloomingdale’s outlet stores
- 4 Bloomie’s locations
- 174 Bluemercury storesSource
Related: Well-known fast-food restaurant chain shuts down 50% of its outlets