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.
@margotrobbie steps out onto the red carpet wearing @miumiu. The actress is nominated for “Outstanding Performance by a Female Actor in a Leading Role” in “I, Tonya” at the #SagAwards. (📷: Stewart Cook) #wwdfashion
For @massimogiorgetti of @msgm, the Nineties are his favorite decade. “They had a huge impact on my personal growth. What I like of the Nineties is that they are not so precise in terms of style as other decades…there was actually a bit of everything,” he said. As seen on MSGM’s Spring 2018 show: tie-dye and a bit of grunge, two styles that are synonymous with the decade #wwdfashion #wwddecades (📷: @kukukuba)
Breaking News: @hedislimane joins @celine as its new artistic, creative and image director. One of fashion’s preeminent image-makers and trendsetters, Slimane is to join the LVMH brand on Feb. 1 and unveil his first fashion proposition for men and women next September during Paris Fashion Week. It marks a major homecoming for Slimane, who cemented his reputation – and influenced men’s tailoring for more than a decade – as the designer of Dior Homme between 2000 and 2007. He went on to reinvent and ignite the house of Yves Saint Laurent, which he rechristened Saint Laurent, between 2012 and 2016 – all the while maintaining a close relationship with the Arnault family, which controls LVMH and Dior. Read the full exclusive story on WWD.com. Link in bio. #wwdnews #wwdfashion
“Personally I believe the Eighties have been the richest and more vivacious period for international fashion,” Giorgio Armani said when asked what his favorite decade of fashion is. It was a moment of disruption and experimentation and only thinking back to the first years of that decade is always an emotion for me, for what they have meant to me and my work.” The influence is clear in @giorgioarmani spring 2018 collection, pictured here, which was full of bright colors and unexpected prints. Read more about which decades designers loved most on WWD.com #wwdfashion #wwddecades (📷: @aitorrosasphoto)
For Lady Gaga’s only Italian show on her “Joanne World Tour,” the singer wore a range of @versace_official outfits. The standout piece: this custom-made bodysuit inspired by the brand’s spring 2018 collection. #wwdfashion (RG: @ladygaga)
@_camillaruth_ is expanding on the wellness-craze concept with @westbourne – a new NYC restaurant that’s both a healthy-minded café as well as a business that gives back to the community. Marcus works with the Robin Hood foundation to give back to The Door, a non-profit providing youth development services, and also hires employees through The Door. Read our full interview with Marcus on giving back through food on WWD.com. #wwdeye (📷: @lexieblacklock)