PARAMUS, NJ-Macy's officials have announced that they will shutter the 150,000-sf department store anchoring one end of the one-million-sf Bergen Mall here. It's not a matter of the market taking an economic blow, but rather the department store chain's presence in this market. Macy's operates newer, larger stores at the nearby Garden State Plaza and Paramus Park Mall.
"The decision will allow us to reallocate our resources to better serve the communities in the state," says Ron Klein, chairman and CEO of Macy's East. Macy's is a division of Federated Department Stores. "There are still 27 Macy's stores in New Jersey."
The Bergen Mall Macy's was sort of an afterthought in the local market. The store has spent most of its existence as a Stern's, but was converted to a Macy's three years ago when parent Federated shut down the Stern's operation nationally and recycled the stores as other Federated divisions, mostly Macy's. Federated did little to upgrade the store other than change the name on the building.
The shut-down has larger implications for the mall itself. Locally based owner Vornado Realty Corp. bought the property less than a year ago from Simon Property Group for a reported $145 million, or about $145 per sf, and has been mulling a major overhaul of the circa 1957 asset. According to sources, options being considered include everything from adding someone like a Target or Wal-Mart to replace Macy's, to completely reconfiguring the enclosed mall as an outward-facing open mall. Vornado has not responded to a request for comment.
Vornado has a portfolio of 56 shopping centers, most of them in the Northeast. And Vornado already has Wal-Mart as an anchor in several of them.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.