Downsizing Department Stores
Macy’s, the iconic department store operator, has announced plans to close around 150 of its namesake locations across the United States by early 2027. The move is expected to bring significant changes to malls and communities across the country.
Grocery Stores, Hockey Rinks, and Amazon Warehouses
The closures will likely lead to the transformation of former Macy’s stores into new spaces and projects that will surprise longtime mallgoers. In the past, major mall owner Brookfield Properties has redone more than 100 anchor boxes with capital investments of over $2 billion. One example is the Stonestown Galleria in the San Francisco area, which was retrofitted after a Macy’s closure. The former Macy’s is now a Whole Foods, movie theater, sporting goods store, and health-care facility.
What’s Happening to Malls?
As consumers increasingly shift away from brick-and-mortar shopping and towards online shopping, many malls are feeling the pressure. According to Naveen Jaggi, president of retail advisory services at JLL, malls are facing a significant challenge.
Conclusion
The announcement from Macy’s is just the latest sign of the evolution of the retail landscape. As department stores dwindle, other anchors may soon follow. The closure of Macy’s stores will ultimately be a catalyst for change in malls and communities, as owners look to reinvigorate their properties with new uses and tenants. The future of malls will likely involve a mix of retail, entertainment, and non-retail uses to attract visitors.
FAQs
Q: How many Macy’s stores is the company planning to close?
A: Macy’s is planning to close around 150 of its namesake locations across the United States by early 2027.
Q: What happens to the former Macy’s stores?
A: The former Macy’s stores could be transformed into smaller retail spaces or used for other purposes such as healthcare facilities or restaurants.
Q: How will malls adapt to the decline of department stores?
A: Malls are expected to evolve by incorporating more diverse tenants, such as co-working spaces, medical buildings, and restaurants, to attract visitors.
Q: Will other department stores follow Macy’s lead?
A: Yes, other department stores may soon follow Macy’s in downsizing or closing their physical locations.
