Macy's State Street Flagship Could Be Headed For A Big Downsizing

By Stephen Gossett in News on Feb 23, 2017 7:45PM

Getty Images / Photo: Xinhua News Agency

As Macy's continues to grapple with declines in sales, the retailer is reportedly considering giving it's iconic downtown Chicago location—the former home of the iconic Marshall Field's—a major haircut. Macy's is considering selling the upper floors of the State Street store to a company that would convert them to office space, according to Crain's Chicago.

Macy's CFO Karen Hoguet told analysts on an earnings call that, along with nearing a sale its downtown Minneapolis store, the company is "working on a plan" that would downsize the Chicago store, Crain's reported. The scale-back would likely mirror a deal from 2015 in which the top four floors of a Seattle Macy's were sold and converted to offices.

A spokesperson declined to confirm or deny the potential sale of space at the Chicago location (111 N. State St.), but added that the company continues to develop a strategy to downsize the space in some fashion.

"We are still working on a plan for a downsized Macy’s on State Street store which we expect will result in a more vibrant and more productive store," Andrea Schwartz, Vice President of Media Relations for Macy's North Central Region, told Chicagoist by email. "We are not commenting on any specific property or opportunities we might be considering."

"When we have announcements to make, we make them, as we have done regarding real estate in Brooklyn, Seattle, Minneapolis and other cities," she added.

The upper floors at the Chicago location include several restaurants such as Burger Bar, Frontera and Walnut Room—one of the few vestiges of the space's days with Marshall Field's

Last year, Macy’s announced plans to close 100 stores nationwide—an ongoing move that local Marshall Field’s diehards championed at the time based on the long-shot hope that it would hasten the return of its Chicago-beloved former tenant.