Popular mall department stores have begun the year with restructuring plans, hoping to shed underperforming store locations and set themselves up for a productive and profitable year.

Successful restructuring plans will be essential this year, as many experts are not confident that retailers will have strong sales this year.

A recent survey showed 46% of fashion executives expected industry conditions to worsen in 2026, compared to 39% in 2025, according to the 2026 Business of Fashion — McKinsey State of Fashion Executive Survey released by consulting firm McKinsey & Company.

Department stores close locations

JCPenney and Nordstrom got a head start on closing stores in 2025, with Penney’s closing about eight stores and Nordstrom shutting at least two last year.

Marshall’s closed two stores this year, located in Los Angeles and San Jose, Calif., before Jan. 5.

Macy’s revealed that it will close 14 locations in 11 states in 2026 as part of its “Bold New Chapter” restructuring plan, which it launched in 2024, Axios reported.

Macy’s is closing three warehouse facilities in Connecticut.

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Macy’s closes warehouse locations

And now the iconic department store chain has notified employees at two fulfillment center locations in Cheshire, Conn., and a distribution center in South Windsor, Conn., that it will shut down all operations at the three locations between March 14 and Aug. 29, 2026, and permanently lay off 1,050 workers.

Macy’s submitted 60-day Worker Adjustment and Retraining Notification Act notices on Jan. 12 and Jan. 13 to employees and sent letters to the Connecticut Department of Labor notifying them of the impending layoffs, according to WARN filings reviewed by TheStreet.

Macy’s set a layoff date of March 14 for 57 employees at its Store Delivery Center and Customer Returns Center Operations at 301 Governors Highway in South Windsor, according to a Jan. 12 letter.

It also designated layoff dates between March 14 and April 30 for 993 employees at the Fulfillment Centers at 475 Knotter Drive and 181 West Johnson Ave. in Cheshire, which are a short proximity to each other, according to a Jan. 13 letter.

Macy’s already closed a Backstage operation

The company previously, on Oct. 28, 2025, sent WARN notices for its entire Backstage operation at the South Windsor location for layoffs affecting 106 employees from Dec. 28, 2025, through Jan. 10, 2026.

Information about severance and other benefits will be made available to impacted employees, as well as information about the opportunity to transfer to open positions in nearby Macy’s locations, the WARN letters said.

Macy’s colleagues have no bumping rights, according to the letters. Should an employee be re-hired by Macy’s at a later date, service date, pay rate, and benefits will be in accordance with the then-existing policies and practices. No employees are represented by a union.

Macy’s warehouse facility closings:

• Macy’s Store Delivery Center and Customer Returns Center Operations, 301 Governors Highway, South Windsor, Conn.
• Macy’s Backstage Operation, 301 Governors Highway, South Windsor, Conn.
• Macy’s Fulfillment Center, 475 Knotter Drive, Cheshire, Conn.
• Macy’s Fulfillment Center, 181 West Johnson Ave., Cheshire, Conn.

The department store retailer two years ago said it would close up to 150 underperforming locations, including about 50 by the end of its 2024 fiscal year, according to a February 2024 Macy’s statement. It also closed 66 stores in 2025.

The department store planned to reimagine its best stores, enhance customer service, expand its luxury business, and advance its supply chain capabilities.

More closings:

• Casual Mexican restaurant chain closes more locations
• 79-year-old national trucking company closes down, no bankruptcy
• 65-year-old Home Depot rival shutters business permanently

“In executing our strategy, we continue to review our portfolio and make careful decisions about where and how we invest, including closing underproductive stores and streamlining operations,” CEO Tony Spring said in a Jan. 8 statement on the Macy’s progress. “These decisions are not made lightly.”

Macy’s Inc. operates 424 full-size stores, 21 Macy’s small-format locations, and five freestanding Macy’s Backstage stores, according to its website. It also has 32 Bloomingdale’s, 25 Bloomingdale’s outlet stores, 4 Bloomie’s locations, and 174 Bluemercury stores.

Cheshire Fulfillment Center layoff dates

• Night Operations Colleagues and Talent Acquisition Colleagues, March 14, 2026
• Weekend Part-Time Operations Colleagues, April 4, 2026
• Day Part-Time Operations Colleagues, April 4, 2026
• Weekend Full-Time Operations Colleagues, Aug. 1, 2026
• Day Full-Time Operations Colleagues, Aug. 29, 2026
• Maintenance, Asset Protection, Aug. 29, 2026

Related: Popular women’s fashion chain closes stores, no bankruptcy