Macy’s Inc. said Thursday it will close six stores in the spring, which will change the affected downtown shopping districts, though not necessarily for the worse.
The three largest Macy’s stores to be shuttered are a 158,000-square-foot Paseo Colorado in Pasadena, Calif., a 362,000-square-foot unit in downtown St. Paul, and a 791,000-square-foot store in downtown Houston.
“Of course it’s a loss for downtown Houston,” said Scott Wegman, vice president of brokerage at Cushman & Wakefield, Houston. “In terms of the overall impact, it’s not significant. Macy’s has a great presence in Houston at the Galleria Almeda Malls. It’s probably disappointing to [Macy’s] to lose that presence. They probably would have preferred not to close the store. Their customer is served at other places close to downtown.”
Macy’s is the only major department store left in downtown Houston. Sakowitz closed in 1990 and Palais Royal relocated in 2011. “The irony is the office market downtown is remarkably healthy,” Wegman said. “The economy is good during the daytime.”
Wegman said the owner of the Macy’s building will probably redevelop the site, not as straight retail, but with a supporting retail component. Macy’s was reportedly using only a portion of its 791,000 square feet.
“Like any big department store, Macy’s doesn’t pay much rent,” said Andrew Graiser, co-president, A&G Realty Partners LLC, which purchases, evaluates, restructures and disposes of real estate and mitigates leases. “The property becomes an incredibly good real estate redevelopment, which could be mixed use with retail and residential, office or medical.
“[Downtown] is still a place where people go shopping,” Graiser said. “There are still a lot of retailers out there looking to grow. Some local retailers might be perfect for the space. That’s not to say that a company like Dillard’s or Target wouldn’t want a good chunk of the box. We saw what Target did in Canada with Zeller’s.” Target in 2011 acquired 189 Zeller’s leases.
The Macy’s closure in St. Paul will end 50 years of department store operations on Wabasha Street. Ronn Thomas, director of brokerage services at Cushman & Wakefield/NorthMarq, said shuttering the store will have “a great impact on the neighborhood. That shopping district has been declining and Macy’s closure will be the nail in the coffin. The trend has been for shopping to move toward the suburbs. Minneapolis has been able to hang on to some retailers, but Saks Fifth Avenue’s Off Fifth Outlet downtown is closing.”
Macy’s owns the five-story structure in St. Paul, which originally opened as a Dayton’s unit in 1963.
Macy’s is also closing a 99,000-square-foot Bloomingdale’s home store at the Fashion Show Mall in Las Vegas, and two more Macy’s units: a 75,000-square-foot one in Belmont, Mass., and an 80,000-square-foot store in downtown Honolulu.
Macy’s in 2013 and 2014 will open stores ranging in size from 105,000 square feet to 180,000 square feet at the Mall of Victor Valley in Victorville, Calif.; Gurnee Mills in Gurnee, Ill.; the Mall at Bay Plaza in the Bronx; University Town Center in Sarasota, Fla., and in Las Vegas, at the Shops at Summerlin and the addition of a men’s store at the Fashion Show Mall. A 200,000-square-foot Macy’s unit is being built at Westfield South Shore in Bay Shore, N.Y., to replace an older store in the same center. Meanwhile, Bloomingdale’s stores will be built at Glendale Galleria in Glendale, Calif., Stanford Shopping Center in Palo Alto, Calif., and a Bloomingdale’s Outlet unit at Fashion Outlets Chicago in Rosemont, Ill.
Macy’s also revealed the consolidation of two stores at Ridgedale Center in Minnetonka, Minn., into an expanded store with 286,000 square feet in 2014.
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye
"Nowadays when life is not so happy with everything going on in the world, I think people come to me for a little bit of whimsy and color and fun." - Designer Rebecca De Ravenel on her cult-favorite jewelry line. (📸 : @vsteves) #wwd40
“Everyone is talking about how the retail industry is struggling, but I think it’s an incredible time because brands who are doing something different and innovative are setting themselves up for the future,” said @adamgoldston, who founded the luxury athletic brand @apl with his brother @ryangoldsten. The Goldston’s are part of WWD’s 40 under 40: a group of industry notables. See the rest of the list on WWD.com. (📷: @vsteves) #wwd40
@eyeswoon blogger Athena Calderone debuted her first-ever cookbook, “Cook Beautiful,” which is heavily centered on the presentation and visual expression of food. Pictured here are her miso glazed carrots from the book. Get the recipe on WWD.com. (📷: @johnny_miller_) #wwdeye
“It’s passion that helps get anybody to a certain point and it’s what’s propelled me,” said Kith founder @ronniefieg, one of WWD’s 40 under 40: a group of industry notables who are changing the face of retail, fashion and beauty. Fieg, who opened a Manhattan flagship on October 7, began his career at age 13 as a stock boy and salesman for footwear chain David Z. “I think staying true to [my] beliefs, hard work and passion have gotten me to where [Kith] is today.” See the rest of the 40 at WWD.com. (📷: @vsteves) #wwd40
25-year-old @samweaving is about to break out this fall, starring in Netflix’s horror film “The Babysitter,” fittingly out today on Friday the 13th. That’s not the only place you’ll be seeing her, though — Weaving’s got a role Showtime’s “SMILF” and another alongside Frances McDormand and Woody Harrelson in “Three Billboards Outside Ebbing, Missouri.” Though she’s got a full plate at the moment, there’s one role she’s got her eye on: Marilyn Monroe. “I’m a little too young at the moment, but it’s on my bucket list,” the actress told WWD (📷: @dandoperalski) #wwdeye
BFF's Poppy Jamie and Suki Waterhouse celebrated the launch of their bag line Pop x Suki at Nordstrom last night. "The line is really about our friendship, and how we are so different but complement each other," said Waterhouse. 👯 (📷: Katie Jones) #wwdeye
After designing the new @louisvuitton and @bulgariofficial flagships and a @chanelofficial boutique opening in Japan, @petermarinoarchitect has another project on his plate: The Lobster Club. Located in the Seagram Building, it’s the famed architect’s first restaurant project in New York, serving up modern Japanese brasserie-style cuisine. Bronze hues, bespoke material detailing, blush and chartreuse tones and a heavy emphasis on Picasso can be seen throughout. Mark your calendars for Nov. 1 for the much-anticipated opening. (📷: @clint_spaulding) #wwdeye