Macy’s, the renowned chain of department stores, is contemplating the possibility of shutting down its flagship store located in San Francisco’s Union Square as part of its newly devised turnaround strategy, according to a source familiar with the situation disclosed to Reuters.
Should this closure plan be pursued, it is not anticipated to take effect before the year 2025. The potential closure aligns with Macy’s broader initiative to assess the real estate value of its properties in comparison to future sales growth prospects.
Aaron Peskin, who serves as the President of the San Francisco Board of Supervisors, conveyed his disappointment upon receiving notification from Macy’s regarding the potential closure of the Union Square store.
In a statement, Peskin expressed profound dismay over the news, echoing sentiments reportedly shared by local officials as reported by the San Francisco Chronicle and other media outlets.
San Francisco Mayor London Breed acknowledged reports regarding Macy’s intention to sell its Union Square property but stressed that the process would entail a considerable amount of time. Breed assured the public that Macy’s would remain operational in the foreseeable future, ensuring that employees retain their positions at the store.
Situated at 170 O’Farrell Street, the Union Square location holds significance as the venue for the city’s annual Christmas tree lighting ceremony and is considered one of the few remaining traditional department stores in the downtown area.
Macy’s recent announcement to close an additional 150 underperforming stores nationwide by 2026 came after its decision in January to shut down five locations and reduce its workforce by 3.5 percent.
Adrian Mitchell, Macy’s Chief Financial Officer, revealed that the stores earmarked for closure represent 25 percent of the company’s total square footage but contribute less than 10 percent of its annual sales.
However, Macy’s has not publicly confirmed the specific locations of the stores slated for closure.
Post Your Comments