This is Macy’s trimming weight in a tougher part of the cycle. When demand gets uneven and customers start hesitating, fixed costs become a problem fast. Older fulfillment centers, extra headcount, and regional inefficiencies stop making sense when sales growth isn’t doing you any favors. Closing the Cheshire warehouses is Macy’s admitting that the footprint it built for the past no longer matches how people are shopping now or what it costs to serve them.

Why Now

Two things are colliding. One is structural..mall traffic keeps thinning while online and off mall shopping keeps winning. That trend never reversed, it just paused during COVID. The second is macro pressure. Consumers are still buying things, but they’re more selective. They compare prices, wait for discounts, switch brands, and walk away more easily. That behavior hits margins before it hits revenue, and once margins compress, companies move quickly to cut costs that don’t directly drive sales.

How The CEO Described The Consumer

Tony Spring’s message was pretty straightforward..consumers are under pressure and behaving accordingly. He said people are paying a bit more, making a bit less, and that makes them cautious. Shoppers still have choices, but they’re less willing to spend freely and more sensitive to value and uncertainty. That shift forces Macy’s to adapt..leaning into better performing stores and digital channels while pulling back from older facilities and cost structures that don’t fit how customers are actually buying today.

My View

This is margin defense. But it is a sign that the quality of consumer demand is weakening. When big retailers start talking this way, it usually means we’re moving into a phase where efficiency matters more than expansion. Layoffs show up in specific places, not everywhere at once. The economy doesn’t fall apart but it gets less forgiving, especially for businesses carrying legacy costs they can’t justify anymore.