Macy’s has faced declining sales, closing stores and laying off employees, but is now reconsidering the closure of its iconic Union Square location in San Francisco. The company partnered with TMG Partners to explore new development options for the site as part of a broader real estate portfolio evaluation.

Previously, Macy’s announced plans to close 150 underperforming stores by 2026, focusing on investing in its remaining 350 stronger locations, including Bloomingdale’s and Bluemercury. Despite past struggles, shareholders estimate Macy’s real estate holdings could be worth up to $9 billion.

Macy’s San Francisco flagship, opened in 1945, has been a retail destination and local landmark for generations. While no definite plans have been announced, TMG Partners hinted at housing, office space, and new retail concepts for the building’s future. Macy’s and TMG will continue operations at the flagship location through at least the first quarter of 2026.

As mall closures continue across the U.S., Macy’s extensive real estate portfolio may prove to be its most valuable asset. Activist investors urge the company to unlock shareholder value by rethinking its capital strategy and consider structural actions. Retail experts agree that Macy’s must adapt to industry changes to drive long-term performance.

Read more at Yahoo Finance: Macy’s customers could soon live inside this iconic flagship store