Macy’s Closures to Usher in a New Era of Mall Transformation: Apartments, Hockey Rinks, and Amazon Warehouses

Macy’s decision to close nearly a third of its stores by early 2027 is expected to bring significant changes to shopping malls and communities across the U.S. The retailer plans to shut down about 150 of its namesake locations, which account for 25% of the company’s gross square footage but less than 10% of its sales. This move is part of Macy’s strategy to invest more in the remaining 350 stores and focus on expanding its more successful brands, like Bloomingdale’s and Bluemercury.

As Macy’s exits these locations, malls will face the challenge of filling the large spaces left behind. Macy’s stores typically range from 200,000 to 225,000 square feet, and few single tenants are capable of occupying such expansive areas. Even major retailers like Nordstrom and Belk, which once opened large stores, are no longer pursuing that strategy.

However, Chris Wimmer, senior director at Fitch Ratings, sees the closures as an opportunity for many malls. He believes that the departure of Macy’s could accelerate the transformation of low-performing malls that are no longer viable. For healthier malls in good locations, the closures present a chance to repurpose prime real estate, potentially revitalizing the shopping centers.

In some cases, the vacant spaces left by Macy’s could be redeveloped into more relevant real estate projects, such as medical buildings, retirement communities, grocery stores, or even Amazon warehouses. However, in areas with declining foot traffic or less desirable locations, the vacant Macy’s stores might become difficult to repurpose, potentially leading to further decline and blight.