City officials announced that Macy's plans to close its Center City Philadelphia store, located in the historic Wanamaker Building at 13th and Market Streets, in March.
This is the latest blow to the Market East section of Center City that has tried many things to resuscitate the area, all of which have struggled and/or ultimately failed. The next great promise is 76 Place, the new arena for the Philadelphia 76ers which is planned to open by 2031.
Jesse Lawrence, Director of Planning and Development for the City of Philadelphia, said at a press conference Wednesday that the vacant space inside the Wanamaker building won't be vacant for long, and feels the new arena as an anchor to Market East will be the attraction that creates interest in a section of the city that hasn't thrived commercially in decades.
"This certainly isn't the news that anybody wants to hear in the city. ... But I want to be clear about the fact that it reaffirms that we are in the midst of that revival opportunity for the city's first real commercial corridor," he said. "For months ... we've been talking about a catalytic opportunity that will not only jump start development along East Market Street, but give us an opportunity to do that master planning."
Lawrence added that the owner of the portion of the Wanamaker building where Macy's currently sits - New York-based TF Cornerstone - wants to develop additional housing in the historical landmark. It's not clear whether Macy's departure will create more housing, but City Councilman Mark Squilla, who represents the district where the Wanamaker Building is located, said that the space will likely be repurposed in an imaginative, modern way that likely includes residences.
"Obviously, 400,000 square foot retail places are probably a thing of the past," Squilla said. "They are looking to use it in different ways and to have several different retailers be a part of that space while keeping some office use above them and then converting additional floors to residents. So it'll be a real multiuse building."
That said, losing Macy's is a huge blow to the city, as it was the last vestige of major department stores that have historically lined the streets of Philadelphia.
Macy’s statement on planned closing of 66 of its department stores, including the Canter City Philadelphia store at 1300 Market Street, just steps from Philadelphia City Hall. pic.twitter.com/oS8zj5H84B
— Steve Keeley (@KeeleyFox29) January 9, 2025
This closure is part of Macy's broader strategy to shutter approximately 150 underperforming stores nationwide through fiscal 2026, with about 65 closures planned in the current phase.
Other regional Macy's being shuttered include Exton Square Mall, Logan Valley Mall and Wyoming Valley Mall.
The Center City store, which opened in 2006, has been a significant retail presence in Philadelphia, known for its annual Christmas light show in the Grand Court and the iconic "meet me at the eagle" statue.
The end of an era in the Philadelphia Macy’s center city is closing. The department store is dead.
The Wanamaker Building, a National Historic Landmark, has faced challenges in recent years, with occupancy rates dropping to 23% as of March 2024. TF Cornerstone is reportedly negotiating to purchase the entire property, with potential plans to convert it into residential apartments.
Councilman Curtis Jones called for the right master plan to develop Market East and wanted everyone - from the Chamber of Commerce, to the Planning Commission to City Council and the Mayor's office to the Philadelphia Police Department to be bought in.
"I am excited about the progress on East Market Street but it's not enough to forego some of the things," he said. "It's not just Macy's. It's a CVS. It's a Rite Aid that we are losing. We have to have a marshal plan for Market Street. We have to work together to do that.
"We have to attract something old, something new, something borrowed, and something blue. We need to get some old Philadelphia traditional stores on Market Street. We have to get some new national chains to consider anchoring on Market Street. Something blue is law enforcement. I don't want to quote some people running for office, but they called us Gotham. We are not Gotham, but we damn well better have a Batman security plan so that as we attract international groups coming here, as we attract visitors from around the world, that they experience Philadelphia at its best."
Macy’s closing the downtown Philadelphia store is devastating! Iconic place where Christmas season were always started! The organ, the light show and everything that goes along with it. Philadelphia lost a piece of its heart today.
Lawrence promised that the building will not remain vacant until the arena is ready to open and that the plan is for it to be filled as soon as possible.
"We expect (the news of the arena) to incentivize the attraction right now. I've said it a million times. We have the opportunity to be the ultimate hospitality corridor."
Just like every other time before.
