Macy’s has tidied up its stores — and customers are flocking back.
The 454-store chain on Wednesday reported $4.8 billion in sales for the June–August quarter, smashing analysts’ expectations and sending its stock up 20 percent.
It’s a major turnaround after a years-long sales slump.
The biggest sales gains came at recently remodeled Macy’s stores, with even stronger growth at its luxury chain Bloomingdale’s and high-end skincare brand Bluemercury.
Analysts say the revival stems from stores that are no longer a mess — once a top complaint from shoppers. Closing weak mall locations and courting higher-spending customers have also helped.
‘I recently visited a couple of Macy’s stores and they were tidy,’ Carol Spieckerman, a retail strategist, told the Daily Mail.
‘The tight racks and stacks of clothes that previously suffocated stores are gone.’
CEO Tony Spring launched a turnaround when he took the helm in February 2024, focusing on fewer, higher-quality stores. His strategy — which includes closing 150 rundown locations by 2026 — is paying off, analysts say.
Macy’s has a three-pronged approach to its revival, including closing 150 underperforming stores
Macy’s, which has held important American celebrations like the Thanksgiving Day Parade and 4th of July fireworks in New York City, has attracted dozens of celebrities, like Nicole Scherzinger
The plan was a big risk.
Retailers like Forever 21, Party City, Rue 21, and Joann’s have recently taken a similar approach to their flagging finances, but the lower sales from decreased stores contributed to their death spiral.
All four retailers have since shut down operations.
But on Wednesday, Spring highlighted how Macy’s approach is helping keep stores clean and is driving increased sales.
‘It’s the additional staffing where the customer was asking for it. It’s in the fitting rooms,’ he said.
‘It’s better storytelling and visual merchandising dedicated to each of these stores.’
Speikerman walked away impressed from her store experience, praising the retailer’s approach to revitalizing stores.
‘Macy’s isn’t just pruning its way with spot-treat problems,’ she said. ‘It’s taking a thoughtful, holistic approach.’
Macy’s CEO praised a renewed attention to detail in its store’s designs – that helped bring in higher-earning customers
Tony Spring, Macy’s top boss since early 2024, has led a ressurgence
Over 50 percent of Macy’s shoppers earned a family income over $100,000, executives said
Spring added that refocus has attracted a different clientele. More than half the shoppers who swiped their credit card at a Macy’s store in the past six months make more than $100,000 in household income.
‘While we have exposure to lower income levels, it’s not nearly what it was,’ he said.
‘I think as you go by income level, you certainly see a healthier performance in the higher tiers of income.’
The cleaner image and higher-priced clients helped right the retail ship in a short period.
During its last earnings call, the company removed earnings guidance as it weighed tariffs and global trade wars.
Now, top bosses are cautiously optimistic that they will generate a profit. But some of that will come at a higher cost.
Macy’s CFO, Tom Edwards, said Macy’s customers should prepare themselves for price hikes as the company navigates tariffs.
‘We’re adjusting prices, but as appropriate, not broad-based and really assessing it with our partners in an effort to remain competitive,’ he said on the call.
‘I believe that we are really well-positioned to navigate through this time, given our business model.’
Neil Saunders, a retail expert at GlobalData, said Macy’s results show the company is in the early phases of its turnaround, but thinks there is some room for improvement.
‘More needs to be invested in stores, the assortment needs to be improved, and Macy’s needs to make itself more of a destination — including winning back lapsed customers,’ he said.
‘They have a fighting chance now that they’re getting the fundamentals right.’
