BoB Prediction: Macy’s Downtown will Get Revamped

Image: Macy’s in downtown Cincinnati

Federated Department Stores, the nations largest operator of department stores, as recently as December of 2006 was threatening to pull its massive Macy’s out of Downtown Miami. The DDA and City officials intervened and the move has been halted for now. As Transit Miami had pointed out in late last December, the threat to pull out made no sense, because after a long period of neglect, Downtown is finally seeing a major surge in construction activity and infrastructure improvements. Now, in a move to further solidify its position in the Miami retail market, FDS is investing in its Lincoln Road Macy’s. It seems FDS made all the noise about leaving Downtown to get concessions from the City of Miami–at a time when the City is seeing a boost in tax revenue. The concessions seem to have been provided to FDS, quietly, since no more fuss has been made about the issue.

So, in consideration of the current news out of South Beach, I see it fit to make a prediction: FDS will revamp its Downtown Miami Macy’s store (the largest it has in S. FLA) within the next three years and will make it their flagship Miami store–similar to Macy’s on 34th street in Manhattan, Union Square in San Francisco, and Marshall Fields on State Street in Chicago. This revamp will follow the completion of the nearby Wind, Mint, Ivy, Epic (Dupont towers), Metropolitan Miami towers, and Icon Brickell towers–among others. The over sized and old department store is due a revamp as it is, and FDS cannot expect for the urban store to enjoy profitability in its current overall physical state. It is ideally positioned to capitalize off of Downtown’s rapid development and FDS is sure to plan for it–as they did in Cincinnati. To further speculate, it could be that FDS put pressure on the City for concessions back in December of 06′ to lay the groundwork for a large investment in the Downtown location down the road. The CBD’s existing and incoming residents will benefit most if BoB’s prediction is right.

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8 Comments

Filed under BoB Articles, CBD: Financial District, CBD: Jewelry District

8 responses to “BoB Prediction: Macy’s Downtown will Get Revamped

  1. Gabriel Lopez-Bernal

    I agree 100%, Their protest was only a ploy to get some concessions out of the city of Miami…There was no logical reason behind it otherwise…

    I’ll be writing on the same subject this week, more on the DDA efforts to revamp downtown however…

  2. Gabe, look at FDS’ Macy’s holdings in the urban centers throughout the country. You’ll find a flagship Macy’s store in the heart of several of them. Almost all of which were, at one point, one of the most notable department stores in town (for example: Bon Marche, now Macy’s, in Downtown Seattle). The City has to know that they’re bluffing about leaving, but its too risky to call. This is less a prediction and more a recognition of a logical train of events.

  3. Gabriel Lopez-Bernal

    A downtown H&M would be nice…

  4. Carolina

    I completely disagree…as an employee of Macy’s headquarters office downtown, every single one of my coworkers is sick and tired of the condition of downtown Miami. The building is full of rats, we all feel unsafe going to our cars (that are already incredibly expensive to park). I’ve personally had to call police because I was followed to my car and I know of several other similar incidents, one in which an employee was beaten on the platform of the metro.

    Internally, we’ve been complaining for a long time now. Senior management has promised to do the best it can, but that takes some serious cooperation from the city. It is absolutely unacceptable that just across the river on Brickell there is an urban boom and where our office sits, it looks like a deserted wasteland. Business keep closing, one after another and the only consistent traffic seems to be the homeless that pass by all day long.

    Macy’s has every right to complain…for that matter, I’d be extremely disappointed if they chose to step back on their position over some measly tax break.

    The company still holds an operation center in Doral and a lease on a property in Plantation…there is no reason why we couldn’t move there.

  5. I’m really glad you commented on this considering where you’re coming from. I’m certainly not Nostradamus, and I too work out of the CBD. The building is surrounded by construction activity and is in dire need of a 40-year recertification. Of course they need to move you out, so that they can reinforce the concrete, over haul the mechanical systems, and modernize the electrical systems, then they can fumigate and have something worthy of the Macy’s brand name there. There is too much construction activity, historic value, and incoming peripheral occupation to ignore the long term potential of what could be one of Macy’s most stand out urban flag ship stores in the region (look at their urban flagship stores in Chicago, Seattle, NYC, etc). Pulling out will leave a gaping economic hole in the CBD.

    • Oi Oledvia! Te encontrei pelo face no grupo Qual e9 a sua arte de hoje?. Fiquei enatncada com seus passarinhos. E resolvi conhecer seu blog, estou amando.Seus trabalhos se3o lindos.Estarei mais por aqui.BeijosSheila

  6. Pingback: Macy’s Employees Fed up With of Downtown? « Boom or Bust: Miami

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