Macy's To Sell & Close Downtown Mpls. Location
MINNEAPOLIS (WCCO) -- Macy's Inc. has announced Wednesday the sale and closure of its flagship department store in downtown Minneapolis. The company has agreed to sell the property for more than $40 million to 601W Cos., which is a New York investment firm.
A trip through the Macy's downtown might offer a shopper some retail therapy, but Lynnae Hanson had a different feeling Wednesday afternoon after learning the store's days were numbered.
"Of course it's upsetting," she said. "It's a tradition, it's been a landmark [in] downtown Minneapolis."
And she's not just talking about the Macy's name, but the original one that preceded it for many decades.
"People still haven't gotten over Dayton's," she said. "It's change."
And change doesn't always come easy, especially when you learn 280 employees at the store will lose their jobs.
But Jim Vos likes his glass half full.
"We could see thousands of jobs recreated in that building," he said.
Vos is a principal at Cresa and represents tenants looking for office and retail space downtown. He's also a board member for the Minneapolis Downtown Council and says he's excited about the iconic building's future.
The investment company that bought it from Macy's plans to put office space on the top floor and retail space on the bottom two.
"There's demand for well-located interesting architecture, well-located uniquely Minnesota shops, new office space," Vos said. "There's demand for the building."
Vos said he already has two clients interested in the potential office space.
The closure is part of Macy's national reorganization plan. On Tuesday, the company announced it would close 68 stores across the country this year. including the Minneapolis location.
"Macy's struggle was not a Minneapolis struggle, this was a retail struggle," Vos said. "So I don't think Minneapolis should take it on the chin and feel like it's our fault."
Of the 68 closing stores, the downtown Macy's is the largest at more than 1,276,000 square feet. It's also the oldest, established in 1902 as a Dayton's. It's that historical significance that so many people will miss.
"There was the flower show, there was the holiday show," Hanson said as she recalled the many times she visited the store in her life.
She said she also worked at the store for a few years when it was a Marshall Fields, just after it was Dayton's and before it became Macy's.
"Many of us remember going with grandma down to see the flower show, getting dressed up to go Oak Grill for dinner, there were special times that were held in that building," said Vos. "That iconic of a building that's been around that long invariably has deep, deep roots in people's hearts."
A Macy's representative said the workers who will lose their jobs due to the closures will be offered severance benefits. Some could also be offered positions at nearby stores if possible. The store is expected to close in March.
Minneapolis Mayor Betsy Hodges reacted to the news Wednesday:
"The repurposing and reimagining of the iconic old Dayton's building, which helped define downtown Minneapolis in the 20th century, is a huge opportunity for downtown Minneapolis in the 21st century. While we will all miss Macy's — I've happily spent a lot of money there — and my thoughts are particularly with Macy's workers today, I am also excited for this next step. Just as the redesigned Nicollet Mall will be a regional and national destination in itself, I am hopeful that this new development will prove to be a destination at the heart of Nicollet Mall.
"I have been working closely with Macy's over several months and will meet with the new owners very soon. Retail is changing dramatically in downtowns across America, and my expectation is that the new owners will bring in the kind of targeted, specialty retail that will be successful in our vibrant, safe, 24-hour downtown."
The Minneapolis Downtown Council also released a statement:
"The news that Macy's is closing its Minneapolis store is not surprising in the light of changes affecting downtown retailing across the nation. For many years the former Dayton's building has been an underutilized asset at the center of our business district, with hundreds of thousands of vacant square feet. With the sale of the building to an experienced, well capitalized developer with urban retail experience – 601 W Companies – we have an opportunity to revitalize this iconic structure in the heart of downtown. Combined with the soon to be completed new Nicollet Mall, continued growth of our residential population, and the in-migration of businesses from across the region, a revitalized Dayton's building will add to the positive momentum downtown is experiencing. I look forward to meeting with 601 W Companies and City officials early next week to begin discussing plans for a new future for an old building that holds a warm spot in the hearts of people throughout Minnesota."