Is Macy’s Going Out of Business? What Shoppers Need to Know in 2025
If you’ve been wondering ‘is Macy’s going out of business,’ this comprehensive guide explores Macy’s current business status, financial health, store closures, and what it means for customers in 2025.
Table of Contents
- Introduction to Macy’s
- Why Are People Asking if Macy’s is Going Out of Business?
- Macy’s Business Overview in 2025
- Recent Store Closures and Restructuring
- Macy’s Financial Performance
- Impact of Online Shopping on Macy’s
- Macy’s Digital Strategy and Adaptation
- Consumer Trust and Brand Loyalty
- What This Means for Macy’s Shoppers
- Alternatives to Macy’s
- FAQs About Macy’s Business Status
- Conclusion: Is Macy’s Really Going Out of Business?
Introduction to Macy’s
Macy’s is an iconic American department store with a history spanning over 160 years. Known for its flagship location in New York City’s Herald Square and the famous Macy’s Thanksgiving Day Parade, the brand has been synonymous with mainstream fashion, home goods, and premium shopping experiences.
Yet, as the retail landscape changes rapidly with the rise of e-commerce, economic shifts, and evolving consumer behaviors, many shoppers are asking: is Macy’s going out of business?
This guide dives deep into Macy’s recent business activities, financial performance, and future outlook to answer this pressing question.
Why Are People Asking if Macy’s is Going Out of Business?
Several factors contribute to growing concerns about Macy’s sustainability:
- Retail Apocalypse: The past decade has seen many traditional department stores struggle, with competitors like JCPenney, Sears, and Lord & Taylor facing store closures and bankruptcies.
- E-Commerce Growth: The shift towards online shopping, especially during the pandemic, has reshaped customer preferences.
- Economic Pressures: Rising inflation, supply chain disruptions, and shifting demographics have impacted consumer spending.
- Macy’s Store Closures: Announcements of store closures in multiple locations fueled speculation about the company’s financial health.
Macy’s Business Overview in 2025
In 2025, Macy’s operates both online and through hundreds of brick-and-mortar stores across the United States. Its business strategy revolves around:
- Omnichannel Integration: Combining online shopping with in-store experiences.
- Private Brands: Expanding exclusive labels to differentiate from competitors.
- Luxury Expansion: Investing in upscale offerings through Bloomingdale’s and Bluemercury.
- Smaller Format Stores: Introducing ‘Market by Macy’s,’ a smaller, more community-focused store concept.
Key Statistics
- Number of Macy’s locations: Approximately 400 (down from over 800 a decade ago)
- Online sales growth: A steady increase of 8-12% year-over-year
- Market share: Macy’s remains one of the top 10 U.S. retailers
Recent Store Closures and Restructuring
Closure Announcements
Over the past few years, Macy’s has strategically closed underperforming stores. In 2020, the company announced plans to close 125 stores over three years. By 2025, this plan has largely been executed.
Reasons for Closures
- Low foot traffic in certain malls
- Overlapping markets
- High operational costs
- Shift toward digital-first strategies
Restructuring Efforts
- Workforce optimization: Macy’s has restructured corporate teams to improve agility.
- Property redevelopment: Some former store locations are being repurposed for other commercial uses.
Macy’s Financial Performance
Macy’s financial health is crucial to determining its long-term viability.
Revenue and Profit Trends
- 2023: $24 billion in annual revenue
- 2024: $25.5 billion with a 5% net profit margin
- 2025 (projected): Steady revenue with modest growth due to e-commerce investments
Debt and Liabilities
Macy’s has actively reduced debt, positioning itself more favorably compared to other legacy retailers.
Stock Performance
Macy’s stock price has fluctuated but stabilized due to:
- Stronger online sales
- Real estate holdings
- Private brand performance
Impact of Online Shopping on Macy’s
The E-Commerce Surge
Macy’s has seen digital sales grow significantly, particularly during and post-pandemic.
Online Initiatives
- Enhanced mobile app and website UX
- Personalized online shopping experiences
- Same-day delivery in select cities
Competition
Macy’s faces stiff competition from:
- Amazon
- Target
- Nordstrom
- Specialty fashion e-tailers like ASOS and Revolve
Macy’s Digital Strategy and Adaptation
Macy’s future viability hinges on its digital adaptation.
Key Strategies
- Investment in AI for personalized recommendations
- AR (Augmented Reality) fitting rooms
- Livestream shopping events
- Loyalty programs integrated across online and in-store experiences
Market by Macy’s
This new retail format targets suburban shoppers, blending curated merchandise with community events.
Consumer Trust and Brand Loyalty
Despite challenges, Macy’s retains a strong customer base, particularly among:
- Middle to upper-middle-class shoppers
- Gift buyers (holiday shopping, wedding registries)
- Beauty and cosmetic enthusiasts via Bluemercury
What This Means for Macy’s Shoppers
Shopping Benefits
- Competitive pricing
- Exclusive brands
- Loyalty rewards (Star Rewards program)
- Omnichannel flexibility (buy online, pick up in-store)
Potential Drawbacks
- Fewer physical stores
- Limited inventory at smaller locations
- Delivery wait times for certain products
Alternatives to Macy’s
If local Macy’s stores are closing or options are limited, shoppers can explore:
- Nordstrom: Higher-end department store with a robust online presence
- Kohl’s: Affordable pricing and partnerships with brands like Sephora
- Target: Fashion-forward yet affordable collections
- Amazon: Extensive product variety with quick shipping
FAQs About Macy’s Business Status
Q: Is Macy’s bankrupt? No, Macy’s is not bankrupt and remains a publicly traded company with diversified revenue streams.
Q: Are more Macy’s closures coming? Macy’s may close more stores, but closures are strategic rather than indicative of full business collapse.
Q: Can I still shop online? Yes, Macy’s online store is robust and continues to grow.
Q: What about Bloomingdale’s and Bluemercury? Both remain operational and are integral to Macy’s premium market strategy.
Conclusion: Is Macy’s Really Going Out of Business?
While Macy’s has closed numerous locations and faced financial headwinds, it is not going out of business in 2025. The company has adapted through digital transformation, strategic store closures, and an evolving product mix.
For shoppers, this means Macy’s remains a relevant and trusted destination, especially online and in urban centers where flagship stores thrive.
Staying updated on Macy’s business strategies and local store statuses can help consumers make the most of their shopping experiences.
