{"id":1004134451,"date":"2016-01-08T07:20:44","date_gmt":"2016-01-08T15:20:44","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004134451"},"modified":"2022-12-09T00:52:40","modified_gmt":"2022-12-09T08:52:40","slug":"macys-to-close-more-stores-seek-partnerships","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/macys-to-close-more-stores-seek-partnerships\/","title":{"rendered":"Macy\u2019s to Close More Stores, Seek Partnerships"},"content":{"rendered":"

By Gail Kalinoski, Contributing Editor<\/p>\n

\"Jeff<\/a>

Jeff Green<\/p><\/div>\n

Hours after Macy\u2019s announced its store in the Irvine Spectrum Center was one of 40 closures, the Irvine Co. released plans for a major $150 million reinvestment plan at the popular Southern California shopping and lifestyle center. The Irvine Company will add more than 20 stores in two new buildings on the site of 140,000-square-foot Macy\u2019s.<\/p>\n

\u201cThe Macy\u2019s closing has been contemplated for months and has provided us with a unique opportunity to rebalance Irvine Spectrum Center with additional retail stores to ensure that it continues as one of Southern California\u2019s premier shopping, dining and entertainment lifestyle destinations,\u201d Easther Liu, chief marketing officer for Irvine Company Retail Properties, said in a prepared statement. \u201cAs a master-planning company and long-term owner, we are always exploring how we evolve Irvine Spectrum Center\u2019s vibrancy and relevancy to marry with our customer\u2019s evolving tastes.\u201d<\/p>\n

Retail consultant Jeff Green, president of Jeff Green Partners, said some shopping center and mall owners will follow Irvine Company\u2019s lead and carve up the former Macy\u2019s stores into smaller retail spaces. Others may tear down the vacant Macy\u2019s stores and build multifamily or limited-service hotels, he said.<\/p>\n

\u201cThat is a lot of space to fill up. There isn\u2019t anybody (retailer) to take the entire box, which is why I think you have to look to non-retail,\u201d he told Commercial Property Executive.<\/em> \u201cBasically, the malls are going to become mixed-use. I think that is the direction the mall industry is going in anyway.\u201d<\/p>\n

\"Terry<\/a>

Terry Lundgren<\/p><\/div>\n

The news that 36 Macy\u2019s stores would close early this year -making a total of 40 when added to the four that closed in late 2015- was part of a \u201cseries of cost-efficiency and process improvement measures to be implemented beginning in early 2016,\u201d announced by Chairman & CEO Terry Lundgren. They are designed to cut expenses by about $400 million while still investing in growth strategies including omnichannel capabilities at Macy\u2019s and Bloomingdale\u2019s.<\/p>\n

Macy\u2019s, currently operating about 770 stores, has said for several months that more stores would be closed. Most of the stores slated for closing should be shuttered within two to three months. It also plans to close a St. Louis call center.<\/p>\n

\u201cIn today\u2019s rapidly evolving retail environment, it is essential that we maintain a portfolio of the right stores in the right places,\u201d Lundgren said in a prepared statement. \u201cSo we will continue to add stores selectively while also being disciplined about closing stores that are unproductive or no longer robust shopping destinations because of change in the local retail shopping landscape.\u201d<\/p>\n

\u201cIt\u2019s not a surprise. It needed to happen for awhile,\u201d Green noted.<\/p>\n

He said most of the stores fall into three groups \u2013 underperforming stores, stores in underperforming malls or stores operating in outdated prototypes like the former store in downtown Pittsburgh, which had 1.2 million square feet. The company sold the store in July to Core Realty, which is planning a major mixed-use redevelopment for the historic building.<\/p>\n

\u201cIt\u2019s interesting that regions like upstate New York, western Massachusetts and northern Connecticut had a number of store closures,\u201d Green said. \u201cIt could be due to the economy of the area. Many of them are small markets. They probably shouldn\u2019t have been in some of those markets anyway.\u201d<\/p>\n

In addition to selling properties like the Pittsburgh location, Macy\u2019s is continuing to monetize its assets. It has engaged Eastdil Secured, along with assistance from Credit Suisse and Goldman Sachs, to seek potential partnerships or joint ventures for the company\u2019s mall-based properties as well as its flagship real estate assets in Manhattan, Chicago, San Francisco and Minneapolis. The company statement noted that Tishman Speyer has already expressed interest in pursuing partnerships on the four flagship locations so it is not advising Macy\u2019s on those properties. Tishman Speyer will continue to advise Macy\u2019s on potential opportunities for maximizing the value of other assets.<\/p>\n

Tishman Speyer has already teamed up with Macy\u2019s to redevelop its downtown Brooklyn, N.Y., location.<\/a> In August, the retailer sold part of the store and a parking garage to the developer, which plans to put 10 stories of Class A office space on top of a slimmed down, renovated store. The deal called for Tishman Speyer to pay Macy\u2019s $170 million in cash and another $100 million over the next three years to be used for renovations at the 422 Fulton St. store.<\/p>\n

In October, Macy\u2019s sold the top four floors of its downtown Seattle department store at 300 Pine St. to Starwood Capital Group, which plans to convert those floors to Class A creative office space, for $65 million.<\/p>\n","protected":false},"excerpt":{"rendered":"

Hours after Macy\u2019s announced its store in the Irvine Spectrum Center was closing, the Irvine Co. released plans for a major $150 million reinvestment plan.<\/p>\n","protected":false},"author":1068,"featured_media":1004134454,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21782,21808,21825,23891,21742,21749,15],"tags":[],"class_list":["post-1004134451","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-development","category-featured","category-finance","category-national","category-latest","category-retail","category-west"],"acf":[],"yoast_head":"\nMacy\u2019s to Close More Stores, Seek Partnerships - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/macys-to-close-more-stores-seek-partnerships\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Macy\u2019s to Close More Stores, Seek Partnerships\" \/>\n<meta property=\"og:description\" content=\"Hours after Macy\u2019s announced its store in the Irvine Spectrum Center was closing, the Irvine Co. released plans for a major $150 million reinvestment plan.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/macys-to-close-more-stores-seek-partnerships\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2016-01-08T15:20:44+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-09T08:52:40+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/01\/Jeff-Green.png\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"566\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Gail Kalinoski\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/macys-to-close-more-stores-seek-partnerships\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/macys-to-close-more-stores-seek-partnerships\/\",\"name\":\"Macy\u2019s to Close More Stores, Seek Partnerships - 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