Macy's itself hasn't said anything yet, but according to one business magazine the company plans to close its downtown Minneapolis department store in the new year.
The report published by Twin Cities Business on Thursday says Macy's has told city officials the store on Nicollet Mall will close sometime in 2017.
Twin Cities Business cited multiple sources who requested anonymity and said the company is close to announcing the sale of the one-square-block property to a real estate developer.
While no city officials confirmed the sale on the record, one city council member told the magazine Macy's is critical to the downtown retail environment and Mayor Betsy Hodges said in a statement:
“I have spoken with Macy’s about the future of the historic Nicollet Mall store. I have told them that, like so many people, I love this fixture of our downtown and would like it to remain there. I am also very hopeful that if Macy’s makes another choice, that iconic property on a transformed Nicollet Mall will prove irresistible to exciting redevelopment in our fast-growing, vibrant downtown.”
100 Macy's stores are closing
Macy's announced back in August that it will close 100 of its 728 stores around the country but did not say which ones.
The company revealed a few of them last month when it announced some real estate deals. Those include the sale of the San Francisco Macy's for $250 million, Marketwatch says.
The one in downtown Portland, Oregon, is also closing early next year. Like the Minneapolis Macy's, it occupies a site that's been a department store for more than a century. One fourth-generation resident told the Oregonian: "It was the heartbeat of Portland and people came from all over the state of Oregon to shop there."
We are in the process of setting ourselves up for a comeback
Department store closings are nothing new and Cincinnati-based Macy's is the last big national chain left standing. Its Minnesota locations were Marshall Field's until 10 years ago and before that they were Dayton's.
Macy's said in last month's earnings report it expects sales for the year will be 2.5 to 3 percent lower than 2015. But CFO Karen Hoguet noted "As we have said all year, we are in the process of setting ourselves up for a comeback, and we remain on that path."
The path involves closing stores that are not doing well and focusing on the top performers. Twin Cities Business said last month Macy's list of its 150 top stores includes the Twin Cities locations at Mall of America, Ridgedale, and Southdale.
Opened in 1902
The site at 7th and Nicollet was purchased by George Dayton (the great grandfather of Gov. Mark Dayton) in the 1890s and he convinced Goodfellows Dry Goods to move into the building he constructed there in 1902.
The Minnesota Historical Society says the following year Dayton bought out the store's owners and put his own name on the building.
That was the start of what became the Dayton-Hudson Corporation, which eventually spun off its discount arm, Target.
It's not clear what might be next for the site. Twin Cities Business reports its sources say Macy's sale to a developer has been delayed while the two sides negotiate who will handle asbestos removal in the building.