Return to News

Macy’s Downsizing Reflects Larger Retail Trends

GLOBEST.COM,  – February 28th, 2024  

Macy’s is closing 150 stores. What dose that say about retail?

Stephen Bittel, Founder and Chairman of Terranova Corporation, tells that during the past decade, traditional department stores have struggled to stay relevant as shoppers increasingly opt for luxury or deep discount alternatives.
“Compounding the issue is their reliance on primary locations as rent-free anchors in regional malls, most of which are experiencing declining foot traffic,” Bittel said.
“If department stores had to pay market rent on most locations, they might have folded by now. The most valuable asset they hold is real estate in major urban markets, ripe for redevelopment. However, tight capital markets hinder this transformation, leaving them with limited time to reinvent themselves.”.