Macy's mulls closure of San Francisco Flagship in turnaround bid

Macy's, the iconic department store chain, is considering the closure of its flagship location in San Francisco's Union Square as part of its new turnaround strategy, a source familiar with the matter revealed to Reuters.

The potential closure, if pursued, is not expected to occur before 2025 and is part of Macy's broader plan to evaluate the real estate value of its properties against future sales growth prospects.

Aaron Peskin, president of the San Francisco Board of Supervisors, expressed dismay upon receiving notification from Macy's about the potential closure of the Union Square store.

In a statement, Peskin was devastated by the news, echoing sentiments reportedly shared by local officials cited in the San Francisco Chronicle and other media outlets.
San Francisco Mayor London Breed acknowledged reports of Macy's intention to sell its Union Square property but emphasised that the process would take time. Breed assured the public that Macy's would remain open for the foreseeable future, with employees retaining their jobs at the store.

The Union Square location, situated at 170 O'Farrell Street, holds significance as the host of the city's annual Christmas tree lighting and is regarded as one of the few remaining traditional department stores in the downtown area.

Macy's recent announcement to shutter an additional 150 underperforming stores across the United States through 2026 followed its decision in January to close five locations and reduce its workforce by 3.5 per cent.

Adrian Mitchell, Macy's Chief Financial Officer, disclosed that the stores earmarked for closure represent 25 per cent of the company's total square footage but contribute less than 10 per cent of its annual sales.

However, Macy's has not publicly confirmed the specific locations of the stores slated for closure.

(With inputs from Reuters)