Macy’s CEO Tony Spring announced the imminent closure of a third of their stores by 2027 to invest in the remainder and set up new Bluemercury and Bloomingdale stores across the United States. According to Tony, the shutdown is not much of a loss as the affected locations account for less than 10% of sales.
Like Sears, Lord & Taylor, and JCPenney, Macy’s has also left several malls in the last decade, as new projects like restaurants, amusement parks, and entertainment facilities take over the spaces left behind. Naveen Jaggi, the president of retail advisory services at JLL, noted that most retailers are not keen on large spaces, hence why they would hardly replace mall Macy’s.
What to expect after this impending Macy’s mass closure
According to senior director Chris Wimmer of Fitch Ratings, Macy’s foreclosure will lead other low-quality malls to follow suit and give healthier ones a chance to be established in neighborhoods. He added that demographically beneficial real estate such as medical buildings and retirement communities will replace needless retail stores.
Anand Kumar, who is an associate director of research for Coresight, agrees with Chris as he expects more retailers to take a cue from Macy’s. He explained that the US does not need more physical stores because customers shop more online. He urged malls to take in more co-working spaces, nail salons, and restaurants instead to maintain their visit rates.
Diverse activities for mallgoers
Rather than the same old kind of stores filling malls, visitors can expect a better range of offerings in the coming years, such as rock climbing areas, dining spaces, offices, skating rinks, warehouses, and other more unique spaces. This is already happening, as Stonestown Galleria’s Macy’s is now a Whole Foods, sporting goods store, and healthcare facility.
The one at Tysons Galleria in Washington, D.C. now contains a bowling alley, a movie theater, a showroom for Lucid Motors’ electric vehicles, and home furnishing stores like Crate & Barrel. Adam Tritt of Brookfield Properties agrees that mall visits will become more frequent as residents have new entertainment to look forward to.