The repercussions of Macy’s decision to close 150 stores nationwide will likely reverberate throughout Dallas-Fort Worth, where the retail giant operates more than a dozen stores, including several mall anchor tenants.
The New York-based department-store chain said Tuesday it plans to shutter underperforming stores over the next three years. Although the specific locations slated for closure have not been disclosed yet, DFW’s retail sector is expected to take a hit, the Dallas Business Journal reported.
Macy’s stores in the region include two each in Dallas, Fort Worth and Frisco, along with one in Arlington. In addition, Macy’s pioneered its Market by Macy’s concept in Southlake, introducing a boutique-style store that pales in size compared to its traditional multi-level mall spaces. The company is exploring this boutique concept in other markets, such as New Jersey.
Prominent shopping centers such as NorthPark Center in Dallas, the Galleria Dallas, Stonebriar Centre in Frisco and the Shops at Willow Bend in Plano have Macy’s as tenants.
The downsize reflects Macy’s broader strategy to adapt to evolving consumer needs and market dynamics, particularly with an acceleration of online shopping since the pandemic.
Bob Young, managing director at real estate firm Weitzman, views Macy’s move as a positive step toward growth and adaptation within the changing retail landscape. He believes DFW will be less impacted than other markets because of “good malls” in the region that get plenty of foot traffic.
“In DFW, I think that it’s maybe less likely that there’s a bad thing around the corner,” Young told the outlet.
Macy’s CEO Tony Spring said the company is entering a “Bold New Chapter” that will allow it to return to “enterprise growth.”
The company recently laid off about 2,350 employees, totalling 3.5 percent of its workforce. Macy’s has also deployed several strategies in recent years to compete with online retailers and survive the pitfalls of the pandemic.
—Quinn Donoghue
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