Macy’s Sells Downtown Pittsburgh Building for Redevelopment; Store to Close
July 13 2015 - 10:00AM
Business Wire
Macy’s, Inc. (NYSE:M) today announced it has sold its downtown
Pittsburgh building at 400 Fifth Avenue to Philadelphia-based Core
Realty, which is planning a major mixed-use redevelopment for the
historic building. Macy’s will close its store in that
location.
“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,”
said Jeff Kantor, Macy’s chief stores officer. “In late 2014, we
began working with Core Realty, which had an exciting vision for
residential, hotel and parking on the upper floors and annex
building. More recently, we decided to make the entire building
available to Core so it could evolve its plans into a more holistic
project. We believe this will be an outstanding addition to the
downtown Pittsburgh community in an important location in the heart
of the city.
“Macy’s – and Kaufmann’s before us – have served the downtown
Pittsburgh community at this location since 1887, and we deeply
appreciate the relationship we have built with generations of
Pittburghers, including our customers, associates, community
leaders and elected officials,” he said. “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.”
A final clearance sale in the downtown Pittsburgh store will
begin on Monday, July 20, and is expected to run until early
September.
The Macy’s building and annex includes about 1.2 million square
feet of space on 13 floors, partial street-level and arcade floors,
a basement and sub-basement. Currently, about 475,000 square feet
is Macy’s selling space. The original Kaufmann’s store was opened
in 1887 and was expanded several times until 1913, and then again
in the 1950s. Kaufmann’s was acquired by The May Department Stores
Company in 1946 which, in turn, was acquired by the predecessor of
Macy’s, Inc. in 2005. The Kaufmann’s nameplate was changed to
Macy’s in September 2006.
“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,” Kantor said. The current downtown
Pittsburgh store workforce includes 170 employees. The company is
committed to treating these affected associates with respect and
openness. Associates displaced by the closing may be offered
positions in nearby stores where possible. Eligible full-time and
part-time associates who are laid off due to the store closing will
be offered severance benefits.
In addition, about 30 Macy’s associates who work in various
district offices on the 11th floor of the downtown Pittsburgh
building will be relocated to space in another Macy’s store in the
Pittsburgh area.
Going forward, Macy’s workforce in the Greater Pittsburgh area
will include about 2,450 associates.
Macy’s, Inc., with corporate offices in Cincinnati and New York,
is one of the nation’s premier retailers, with fiscal 2014 sales of
$28.105 billion. The company operates about 885 stores in 45
states, the District of Columbia, Guam and Puerto Rico under the
names of Macy’s, Bloomingdale’s, Bloomingdale’s Outlet and
Bluemercury, as well as the macys.com, bloomingdales.com and
bluemercury.com websites. Bloomingdale’s in Dubai is operated by Al
Tayer Group LLC under a license agreement.
All statements in this press release that are not statements of
historical fact are forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Such
statements are based upon the current beliefs and expectations of
Macy’s management and are subject to significant risks and
uncertainties. Actual results could differ materially from those
expressed in or implied by the forward-looking statements contained
in this release because of a variety of factors, including
conditions to, or changes in the timing of, proposed transactions,
prevailing interest rates and non-recurring charges, competitive
pressures from specialty stores, general merchandise stores,
off-price and discount stores, manufacturers’ outlets, the
Internet, mail-order catalogs and television shopping and general
consumer spending levels, including the impact of the availability
and level of consumer debt, the effect of weather and other factors
identified in documents filed by the company with the Securities
and Exchange Commission.
(NOTE: Additional information on Macy’s, Inc., including past
news releases, is available at www.macysinc.com/pressroom).
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version on businesswire.com: http://www.businesswire.com/news/home/20150713005704/en/
Macy’s, Inc.Media - Jim Sluzewski, 513-579-7764Elina Kazan,
646-429-7448orInvestor – Matt Stautberg, 513-579-7780
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