Macy’s, Inc. has just announced that it has already sold its Pittsburgh building that is located at 400 Fifth Avenue and will soon be closing down the store in the said location. The building was recently sold to Core Realty, a Philadelphia-based company “planning a major mixed-use redevelopment for the historic building.”
As it closes down, Macy’s will be holding a final clearance sale in the downtown Pittsburgh location that will start on July 20. They expect to run the clearance sale until early September.
Macy’s has actually been contemplating on what to do next with their Pittsburgh store for some time now. As Macy’s Chief Stores Officer Jeff Kantor explains, “For the past four years, Macy’s has been investigating the best possible use for this property, especially given the large amount of unproductive and unused space on the upper floors. We have talked with a wide variety of partners in pursuit of a plan that would create the most value for our company and the community.”
Moreover, Kantor explained that the situation with the downtown Pittsburgh building has nothing to do with the performance of their employees.
He said, “Our decision to close downtown is not a reflection of the store’s management and staff, who have done a great job at serving the downtown customer.”
The downtown Pittsburgh store employs 170 employees. Severance benefits will be given to eligible full-time and part-time associates that will be laid off. Meanwhile, some displaced associates may also be offered jobs in some of Macy’s nearby stores. In addition, Macy’s has around 30 associates who work at the 11th floor of the downtown Pittsburgh building that will be moving offices to another Macy’s store. There are actually as much 2,450 Macy’s employees working in the Greater Pittsburgh area alone.
Meanwhile, it was actually in 2014 when Macy’s started talking to Core Realty as the latter had a vision to put up residential, hotel and parking on the upper floors and annex building. It is evidently this vision that convinced Macy’s to “make the entire building available to Core so it could evolve its plans into a more holistic project” as Macy’s believe that Core’s vision will become an “outstanding addition to the downtown Pittsburgh community.”
Macy’s actually set foot in the historic downtown Pittsburgh building following its acquisition of Kaufmann’s back in 1946. Meanwhile, Kauffman’s was occupying the said building since it opened in 1887. The Macy’s downtown Pittsburgh building and annex measures around 1.2 million square feet. It features 13 floors, partial street-level and arcade floors along with a basement and sub-basement.
As Macy’s closes its downtown Pittsburgh store, it assures its customers in the area that they are not going far. Kantor says, “While we will not operate a downtown store going forward, Macy’s remains committed to our customers and associates at 13 other local stores in Southwestern Pennsylvania as well as on macys.com.”