Macy’s in Talks With New York City to Reopen Flagship for Pickup

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(Bloomberg) -- Macy’s Inc. is in talks with New York City Mayor Bill de Blasio’s office to reopen its Manhattan flagship for limited service.

Chief Executive Officer Jeff Gennette said Thursday that his company is working to introduce curbside pickup at its Herald Square location. Getting the store generating revenue again is a big deal for Macy’s: The location is the largest department store in the U.S. and a vital part of the retailer’s fleet. He expects service to begin in the next couple of weeks.

All of New York City’s enormous flagship stores have been closed to the public since mid-March due to the coronavirus pandemic. This includes Macy’s, Bloomingdale’s, Saks Fifth Avenue, Bergdorf Goodman, Nordstrom and Neiman Marcus. The companies have invested billions in these stores to serve as beacons for tourists and locals alike.

“New York City is very top-of-mind for us,” Gennette said during a call. He added there’s no timeline yet on when the store may allow shoppers back inside. New York State’s restrictions are scheduled to stay in place through June 13.

Department stores have been hard-hit by the two-month shutdown. Macy’s estimates a $1.1 billion loss in operating income for the quarter and has paused investment in its best-performing stores to refocus on digital sales. Executives are also accelerating the cost-cutting initiatives that are part their ongoing turnaround plan.

Macy’s expects to have four of every five stores operating in some capacity by the end of the week. The retailer has 775 locations in the U.S.

©2020 Bloomberg L.P.

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