What: Macy’s has returned to sales growth for the first time in years, driven by its turnaround strategy and strong performance from Bloomingdale’s and Bluemercury.

Why it is important: Macy’s turnaround demonstrates how legacy retailers can leverage portfolio optimisation and customer-centric strategies to regain relevance.

Macy’s recent quarterly earnings have marked a significant turning point, with the company achieving its first sales growth in years and sparking renewed investor confidence. This positive momentum is largely attributed to the “Bold New Chapter” strategy, which emphasises customer experience, data-driven store optimisation, and a sharpened focus on high-performing divisions like Bloomingdale’s and Bluemercury. The luxury and beauty segments have consistently outperformed, with Bloomingdale’s posting its fourth consecutive quarter of growth in September 2025, reinforcing the value of Macy’s differentiated portfolio approach. Meanwhile, activist investors continue to press for aggressive value creation through potential spinoffs, real estate monetisation, and capital expenditure cuts, highlighting the ongoing tension between immediate financial returns and sustainable transformation. The convergence of operational improvements, strategic asset management, and evolving investor expectations underscores the complex challenges and opportunities facing Macy’s as it seeks to redefine its role in the modern retail landscape.

IADS Notes: Macy’s transformation is unfolding against a backdrop of persistent activist investor pressure, as Financial Times and WWD reported in December 2024, with calls for spinoffs, real estate monetisation, and capital expenditure reductions. BoF’s December 2024 analysis underscores the tension between unlocking property value and ensuring long-term retail viability. Inside Retail’s January 2025 coverage of Macy’s “Bold New Chapter” strategy highlights the company’s focus on customer experience and data-driven store optimisation, which has begun to yield positive results. Meanwhile, WWD’s September 2025 report confirms Bloomingdale’s as a key growth driver, supporting Macy’s luxury and portfolio strategy amid ongoing transformation.

Has Macy’s finally turned the corner?