Macy's closing 150 stores by early 2027, impacting malls nationwide with potential redevelopment opportunities.

From CNBC: 2024-08-12 10:34:31

Macy’s announced plans to close 150 stores by early 2027, accounting for 25% of gross square footage but less than 10% of sales. This move will impact malls nationwide, prompting transformation and potential redevelopment. The closures will lead to new opportunities for mall owners to revitalize spaces and attract diverse tenants.

The downsizing of department stores like Macy’s reflects broader shifts in the retail landscape. The decline of malls, particularly Class C and D, indicates the changing consumer preferences towards online shopping and suburban strip centers. Top-tier malls are expected to thrive, while lower-tier malls may face closure or repurposing.

Former Macy’s stores may see transformation into new spaces, such as grocery stores, sporting goods stores, healthcare facilities, and more. Brookfield Properties has repurposed anchor boxes in malls for various uses, including entertainment wings, dining options, and retail spaces after Macy’s closures. The trend highlights opportunities for creative reinvention and flexibility in malls.



Read more at CNBC: Macy’s store closures will change malls