MINNEAPOLIS - The historic Macy's building in downtown Minneapolis has been sold and the department store will be closing its doors.
On Wednesday afternoon, Macy's confirmed it will close its downtown Minneapolis location. Sources tell Twin Cities Business the closure will occur in March. The company says the closure is part of an effort to streamline its store portfolio. The closure impacts 280 associates.
“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," said Minneapolis Mayor Betsy Hodges. "While we will all miss Macy’s — and my thoughts are particularly with Macy’s workers today, I am also excited for this next step."
Hodges added she's been working closely with Macy's over the past several months and will meet with the new owners of the building, 601 W Companies, very soon.
Macy's says it signed an agreement to sell the location to 601 W Companies, whose intention is to redevelop the building with office space on the upper floors and retail on the street and skywalk levels. The transaction is expected to close by the end of the fiscal year.
Councilmember Lisa Goodman, who represents the southern half of downtown, including Macy’s, told Twin Cities Business that shuttering the store is a blow that downtown will not easily absorb: “I believe Macy’s is critically important to a vital retail environment downtown.”
"For many years the former Dayton’s building has been an underutilized asset at the center of our business district," said Steve Cramer, President and CEO of the Minneapolis Downtown Council. "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."
Macy's said Wednesday that sales at established stores fell 2.1 percent in November and December compared to the same period last year, citing changes in consumer behavior. The Minneapolis closure is one of 100 closing announced in August. The moves are estimated to save $550 million annually.
Shares in Macy's fell more than 8 percent in after-hours trading Wednesday.
@Macys downtown minneapolis closing down is pathetic. there's history there and where is the annual santaland going to go? all about money
— emily meier (@emilyemeier) January 4, 2017
Sad to hear that Daytons is closing in downtown Minneapolis. Some people call it Macys but it will always be Daytons to me. #Daytons #Macys
— Greg Sanderson (@greg_sanderson) January 4, 2017