Macy's Contending with the Melancholy of Chicago
In the heart of Chicago's bustling Magnificent Mile, a significant change has taken place. Macy's, once anchored at Water Tower Place since 1975, has announced its closure, leaving a gaping space in the shopping district.
The journey to this point began in 2005, when Macy's entered the Midwest market through a merger with May Company. However, the road was not always smooth. The decline of the iconic Marshall Field's brand, which Macy's eventually did away with, was not entirely Macy's problem. Consumer habits and the department store model also played a significant role in the brand's demise.
Marshall Field himself took over the store several years later, known for his motto, "Give the lady what she wants." The landmark State Street flagship, with its colossal Tiffany domed ceiling and famous Walnut Room restaurant, was a testament to Field's vision.
The consumer has changed, with more consumers now preferring convenience and off-price stores over department stores. This shift, coupled with Macy's decision to double down on American department stores at a terrible time for the segment, led to many store closures, including the Chicago stores in 2023.
The downfall of Macy's in Chicago was also attributed to the dismissal of the beloved local brand, centralised vs local merchandising, and the rapid acceleration of footfall decline in department stores everywhere.
Despite the closures, Macy's continues to offer personal shopping and other services in select stores. Some customers still use these services, mainly for finding things for grandchildren. However, some observers believe that yet more closures are unavoidable for Macy's.
As of the end of the fourth quarter, Macy's runs 512 Macy's locations, 53 Bloomingdale's locations, and 162 Bluemercy beauty stores. The Water Tower Place store is one out of 125 closures planned by Macy's a year ago.
The shopping district recently lost a three-story Gap flagship and other stores, adding to the void left by Macy's departure. As the city of Chicago navigates these changes, it's clear that the retail landscape is evolving, and the future holds many uncertainties.
