Macy's was America's department store — and it closed 150 stores as the format died

Macy's, founded in 1858, was the quintessential American department store — the Thanksgiving Day Parade, the Herald Square flagship, the 'meet me at Macy's' cultural reference. At its peak, Macy's operated over 800 stores across the US.

But the department store format was in structural decline. Online shopping (Amazon, brand websites), changing consumer habits (experiential spending over material goods), and the hollowing out of suburban malls eroded Macy's customer base. The company's response — closing underperforming stores, investing in e-commerce, experimenting with smaller formats — was too slow to reverse the decline.

In 2020, Macy's announced the closure of 150 stores over three years. The company's stock fell over 80% from its 2015 peak. The case illustrated how a format that defined American retail for 150 years can become obsolete in a single generation, and how the cultural icon status of a brand cannot save it when the format it represents is no longer what the customer wants.

Closed 150 stores over three years, but the move was too slow to reverse decline; stock fell 80%+ from 2015 peak, showing icon status cannot save a dead format.

Online shopping and changing consumer habits eroded the department store format.

Macy's response (store closures, e-commerce investment) was too slow to reverse the decline.

The suburban mall ecosystem that supported department stores was hollowing out.

Macy's stock fell 80%+ from its 2015 peak; 150 stores were announced for closure.

A cultural icon is not a business model. Macy's was the Thanksgiving Parade, but the customer was on Amazon. When the format dies, the icon becomes a museum.

Macy's continued to operate a reduced store fleet and invested in e-commerce and off-price formats (Backstage). The case is cited alongside Sears, JCPenney and Debenhams as an example of the global department store decline.