The impact of Macy's decision to close 150 stores nationwide will likely be felt throughout Dallas-Fort Worth, where the retail giant operates more than a dozen stores, including anchor tenants in several malls.
The New York-based department store chain announced Tuesday that it plans to close unprofitable stores over the next three years. Although the specific stores scheduled to close have not yet been disclosed, 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, and one in Arlington. Additionally, Macy's pioneered the Market by His Macy's concept at Southlake, introducing boutique-style stores that pale in size compared to traditional multi-level mall space. The company is exploring the boutique concept in other markets, including New Jersey.
Macy's is a tenant in prominent shopping centers such as NorthPark Center and Galleria Dallas in Dallas, Stonebriar Center in Frisco, and The Shops at Willow Bend in Plano.
The downsizing reflects Macy's broader strategy to adapt to evolving consumer needs and market trends, especially as online shopping accelerates since the pandemic.
Bob Young, managing director at real estate firm Weitzman, sees Macy's move as a positive step toward growing and adapting to a changing retail landscape. He believes DFW will be less affected than other markets because the area has “good malls” that draw a lot of foot traffic.
“In DFW, I think it's unlikely that anything bad will happen around the corner,” Young told the magazine.
Macy's CEO Tony Spring said the company is entering a “bold new chapter” that will allow it to return to “corporate growth.”
The company recently laid off approximately 2,350 employees, representing 3.5% of its total workforce. Macy's has also deployed several strategies in recent years to compete with online retailers and survive the pitfalls of the pandemic.
—Quinn Donahue
