Macy’s is selling two stores in Dallas-Fort Worth

Macy’s, which has said it plans to close 150 stores, has hired a Dallas-based commercial real estate firm to market two local stores for sale.

SRS Real Estate Partners sent out sale notices this week to local brokers detailing for sale the Macy’s at Town East Mall in Mesquite and Fairview Town Center.

Macy’s didn’t confirm that those stores will close and a spokeswoman said it’s still evaluating which locations are in the group for permanent closings. Macy’s said in February that it would close 150 underperforming stores leaving it with 350 stores by the end of 2026 while focusing on its luxury brands with the opening of 15 Bloomingdale’s and 30 Bluemercury locations during the three years.

Macy’s has 37 stores in Texas including 17 in Dallas-Fort Worth. Nine of those are large mall anchor stores and the rest are smaller and newer Market By Macy’s and off-price Macy’s Backstage. Macy’s has used D-FW as a backdrop for its small store expansion, opening its first Market by Macy’s in Southlake in 2020 and its first Backstage stores outside of the Northeast in 2016.

“A final decision on specific locations has yet to be made,” a Macy’s spokeswoman said. “Our new strategy is designed to create a more modern Macy’s, Inc. and enhance the customer experience. We intend to close approximately 150 Macy’s stores while further investing in our 350 go-forward fleet over the next three years.”

Macy’s is comparing the potential real estate value and the future profitable sales growth potential of its stores as it selects which stores to close. Stores likely won’t close until after this fall and winter’s holiday shopping season.

Macy’s on Wednesday named two independent directors to its board ending a proxy fight with activist investor Arkhouse Management that sought to buy the department store chain for $6.6 billion with Brigade Capital Management. Macy’s board initially rejected the offer, but said Wednesday that its board is “open-minded” about creating shareholder value.

Town East

Macy’s at Town East in Mesquite is 196,220 square feet and if it closes it would be the second anchor store vacancy. The mall, which is also anchored by Dillard’s, JCPenney and Dick’s Sporting Goods, has an empty Sears store. The last Sears department store in Dallas-Fort Worth closed at Town East in 2021. Plans for a redevelopment of the Sears haven’t moved forward.

A price wasn’t listed for the property on 16.36 acres.

Town East is one of the oldest area malls built in 1971 and is owned by one of the largest U.S. mall owners, Brookfield Retail Properties. But as the only enclosed mall on the east side of D-FW, it’s retained a solid retail mix of popular apparel chains American Eagle Outfitters, Aeropostale, Buckle, Express, Forever 21, H&M, Hollister, Lids, Journeys, Rue 21 and The Children’s Place.

But more stores have been built east of it in Rockwall County and more retail is coming in Kaufman County as more housing is built in the towns of Forney and Fate.

Collin County

The Fairview Macy’s store was one of the New York-based retailer’s first free-standing stores when it opened in 2009 at about half the size of a two or three-level store in an enclosed mall. Still, at 121,810 square feet, the Fairview store is five times bigger than Macy’s has been building with its new smaller store strategy. The parcel is 10.65 acres and has 548 parking spaces. A price wasn’t listed.

Fairview Town Center is east of N. Central Expressway along Stacy Road across from the Village at Allen where a Macy’s Backstage opened in 2021 in 19.400 square feet.

The intersection of N. Central Expressway and Stacy Road is a major shopping destination in Collin County that includes Allen Premium Outlets on the northwest corner. Within a three-mile radius are more than 36,000 households with an average income of $146,874.

The Fairview side is a row of free-standing Dillard’s, Macy’s, Whole Foods Market, The Container Store and JCPenney with smaller storefronts interspersed. It’s owned by Dallas-based Lincoln Property Co.

The Village at Allen includes big box chains Target, Cabella’s, Best Buy and several off-price retailers including Burlington, HomeGoods, Nordstrom Rack, Ross Dress for Less and TJMaxx — retailers that have taken market share from traditional department stores.

X: @MariaHalkias

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