Macy’s, the iconic department store chain, has announced plans to close 150 stores nationwide over the next two years, including its flagship Union Square store in San Francisco. This decision comes as part of Macy’s efforts to restructure and find a path to success in the face of increasing competition from online retailers like Amazon, as well as other brick-and-mortar giants such as Target and Walmart.
San Francisco Mayor London Breed expressed her disappointment at the closure, acknowledging the significance of Macy’s to the city and its residents. “As someone who grew up in San Francisco, Macy’s has always meant a lot to the people of this city,” she said. “It’s where families came to shop for the holidays. It’s where many people from my community got their first jobs, or even held jobs for decades. It’s hard to think of Macy’s not being part of our city anymore.”
Marisa Rodriguez, CEO of the Union Square Alliance, echoed these sentiments, stating that Macy’s closure would be a loss for generations to come. However, she remains hopeful that a solution can be found to keep the iconic store open.
While Macy’s struggles with profitability, particularly during the holiday shopping season, Union Square itself has seen a decline in crime rates. City leaders emphasize that the closure is not due to safety concerns but rather a business decision driven by financial considerations.
Ray Wimer, a professor of retail practice at Syracuse University, acknowledges the challenges faced by Macy’s in the current retail landscape. With the rise of online shopping and increased competition, traditional department stores must adapt to survive. Wimer suggests that creating a retail experience with smaller spaces and fewer staff could provide a more attractive option for shoppers.
Macy’s new CEO, Tony Spring, has identified 150 stores as “non-go-forward” locations due to their lack of profitability. The company plans to renovate and invest in the stores that remain open, with a focus on improving the women’s shoes and clothing departments. Additionally, while Macy’s contracts, its sister brand Bloomingdale’s will expand, opening 15 new stores and increasing its presence in the luxury market.
San Francisco politicians see the closure of Macy’s as an opportunity to reimagine the space and attract new businesses. Mayor Breed envisions a profitable and attractive destination that will continue to draw people to Union Square. Supervisor Aaron Peskin suggests a mixed-use space that includes a new sound stage to host world-class performances.
The news of Macy’s closure has been met with sadness by local businesses like John’s Grill, a historic restaurant located near Union Square. The restaurant, which has been a part of the neighborhood since the 1906 earthquake, has welcomed generations of Macy’s shoppers. The owners express their willingness to embrace the next operators of the downtown area.
While the closure of Macy’s flagship Union Square store is undoubtedly a loss for San Francisco, city leaders and residents remain hopeful that new opportunities will arise from this change. As the retail landscape continues to evolve, it is crucial for traditional department stores like Macy’s to adapt and find innovative ways to stay relevant in the digital age.