Macy's announced plans today to close 150 of its "underproductive" stores nationwide, with 50 of them to close this year. And now we have confirmation that San Francisco's enormous — and often empty — store is among them.
In perhaps an even bigger blow to San Francisco's Union Square retail district than last year's closure of Nordstrom, the Macy's corporation reportedly has plans to shutter its massive, nearly block-wide store that it's occupied for decades. As the SF Business Times reports, via the mayor's office, the Union Square store will not be among the 50 Macy's that are set to close in 2024.
Macy's is reportedly seeking a buyer for the 400,000-square-foot property — which does not include the 240,000-square-foot former I. Magnin portion of the store. That property, which is a free-standing building though connected to Macy's on upper floors, was sold to a developer in 2019.
Macy's executives have not yet confirmed or commented on the news, but London Breed rushed a statement to the SF Chronicle about the near future for the store:
"The process to undergo the sale of their building to a new owner with their own vision for this site will take time, and Macy’s will stay open for the foreseeable future and people will remain employed at the store. Macy’s has expressed to me their commitment to remaining a part of Union Square and our City while they undergo this transition. The City will continue to work closely with Macy’s and any potential new owner to ensure this iconic location continues to serve San Francisco for decades to come.”
Macy's previously closed and sold off its 260,000-square-foot men's store and corporate office building on Stockton Street, nearly a decade ago.
Breed also spoke to the Business Times saying, "It’s hard to think of Macy’s not being part of our city anymore. Change is happening in San Francisco."
Breed added, "This is why it’s so important we continue to make law changes at local and state levels, and that we reform our tax laws to recruit and retain businesses."
Macy's continues to operate 19 stores in the Bay Area, in addition to Bloomingdale's locations like the one still open at the SF Centre. In an earnings call today, newly appointed CEO Tony Spring told reporters and investors that the company plans to refocus more on its Bluemercury cosmetics stores, and on Bloomingdale's — adding a total of 45 new locations across both brands.
"Our threshold to keep stores open has become more stringent," Spring reportedly said. "Having the right footprint and location is important. But we must also have the right product at a value that we know appeals to our customers."
It would have seemed a few years ago like the huge, well-established Union Square store would be one of the company's most cherished properties. But perhaps, given declining foot traffic to department stores in general, it was too expensive and "unproductive" of a store to maintain.
The loss of this store, when it happens in a year or two — or three — will also mean the loss of 500 union jobs.
"We are disappointed to hear about the closure of the historically significant Macy’s store in Union square," says John Frahm, president of UFCW Local 5 (United Food and Commercial Workers), which represents Macy's employees, speaking to the Business Times. "We will do everything we can to ensure that the members of UFCW 5 transition into good jobs and will work with the city leadership to ensure if Macy's opens up other stores in the city that the workers enjoy the same opportunities for having a voice at their job."
Related: Nordstrom to Shutter Downtown SF Department Store, and Nordstrom Rack, This Summer