After several turbulent years of mass store closures, slumping sales, and persistent economic headwinds, including tariffs and a slowdown in consumer spending, Macy’s is starting to show strong signs of a retail revival.
Under its “Bold New Chapter” strategy, Macy’s has undergone a drastic transformation to win back customers and achieve sustainable, profitable growth.
That hard work is beginning to pay off.
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In its second-quarter earnings for 2025, Macy’s delivered better-than-expected results, returned to positive sales growth, and saw its stock surge over 20% during trading hours on Wednesday, September 3.
At the center of this momentum is a small but impactful group of stores that have been reimagined as part of its turnaround initiative.
Macy’s Bold New Chapter initiatives spark a return to growth
Back in February 2024, Macy’s (M) announced plans to close around 150 underperforming stores across the U.S. by 2026, including 66 locations this year alone.
The company has since shifted its focus to the remaining 350 stores, particularly its higher-end, more profitable brands like Bloomingdale’s and Bluemercury. Macy’s is also reducing its presence in traditional malls, instead opening 30 smaller-concept stores over the next two years to better align with evolving consumer habits.
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A key element of this transformation has been revamping the in-store experience. Macy’s has already reimagined 125 stores, adding new products, increasing staff, and enhancing customer service.
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The company recently expanded its brand portfolio, forming new partnerships with popular labels such as Abercrombie Kids, expanding the distribution of existing brands, and beginning to update its private label assortment.
While these initiatives represent a significant investment, especially for a retailer that has struggled financially, these changes are already delivering positive results. The reimagined stores are outperforming the rest of the fleet, contributing to Macy’s recent growth.
Macy’s sees early signs of a successful turnaround
In the second quarter of 2025, Macy’s total comparable sales increased 0.8%, with its reimagine 125 locations up 1.1%. This marks the company’s strongest comparable sales growth in 12 quarters.
“Our performance highlights the advantages of being a multi-brand, multi-category, omni-channel retailer. The substantive, enterprise-wide improvements across our business, with a strong focus on customer experience, give us further confidence that our ‘Bold New Chapter’ initiatives can drive sustainable, long-term profitable growth,” said Macy’s CEO Tony Spring in a statement.
The positive results encouraged Macy’s to raise its full-year guidance just one quarter after cutting it, signaling the company’s renewed optimism.
Still, the company remains cautious. Spring warned of ongoing tariff uncertainties, noting that Macy’s is negotiating with suppliers and partners, but may need to raise prices in some areas to offset increased costs.
Despite the challenges, Macy’s second-quarter performance suggests its turnaround strategy is beginning to pay off, which may allow the company’s 167-year legacy to live on for years to come.
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