The three-story Macy's in Center City's Wanamaker building is among 66 department stores the company plans to close in the spring, leaving a major vacancy on the horizon in Philadelphia's retail landscape. The struggling chain revealed the list of pending closures Thursday after months of speculation about its plans to slash locations nationwide.
The 12-story Wanamaker building, a National Historic Landmark built in 1911 at the corner of 13th and Market streets, served as the flagship of the original Wanamaker Department Store that became a trailblazer of the retail format in the 20th century. Macy's moved into the 400,000-square-foot space in 2006, maintaining it as an anchor for commerce in Center City.
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The building still houses the Wanamaker Grand Court Organ — the world's largest functional pipe organ used to ring in the winter holidays — and the bronze Eagle sculpture that was displayed in the original store. Both have been designated historic objects by the Philadelphia Historical Commission.
Macy's CEO Tony Spring said Thursday that the chain chose to shut down "underproductive stores" to allow for more investment in remaining locations. A total of 150 Macy's in the United States will close by the end of 2026, leaving 350 of the department stores. The 66 stores named Thursday are expected to close by the end of March.
At a news conference Thursday afternoon, city leaders discussed the historic significance of the closure and the importance of revitalizing Market Street in the years ahead.
"While this may not be the kind of news we like to hear in our city, this is far from the death of Market Street," said Alba Martinez, the city's director of commerce. "In fact, we are in the midst of a revival and rebirth of East Market Street."
Martinez said Wanamaker's and Macy's have been part of Philadelphia's "cultural fabric" and said the city has an opportunity to ensure that the building can be transitioned to thrive in the future.
City Councilmember Mark Squilla (D), whose 1st District includes the Macy's, said the transformation of Market Street will be led by the development of the 76ers' $1.3 billion arena that won legislative approval from the city in December.
"We are going to make strong considerations of how we can make this particular, transformational, once-in-a-lifetime investment from the Sixers work for the whole entire corridor — and the Wanamaker building will be a part of that," he said. "The key is again to restore the vibrancy, the vitality, to reaffirm Market East as the main street that it once was and should be."
The Macy's portion of the Wanamaker building is owned by New York-based developer TF Cornerstone. Squilla said the developer may purchase the entirety of the building and will look to use it in various ways, including the possibility of multiple retailers occupying the first three floors. Some of the upper office floors also could be converted into residences, Squilla said.
Macy's and other large retailers have struggled to maintain their traditional business models with the rise of online shopping and the decline of malls where they have long served as anchor stores. Some investors have argued that Macy's real estate portfolio is more valuable than the company's shrinking retail empire. The Center City store is among Macy's more high-profile locations on Thursday's closure list, which also included a store in Exton, Chester County and two others in Pennsylvania.
Center City District President and CEO Prema Gupta said the inclusion of Philadelphia's Macy's appears to be part of a "broad business decision" that is not a reflection on the city. The Macy's at the Wanamaker building had garnered negative attention in December 2023 when two security guards were stabbed — one of them fatally — by a man who was accused of shoplifting. Macy's was later sued by the family of the victim who died.
"My impression of the list is that it has nothing to do with Philadelphia and nothing to do with downtowns," Gupta said.
She added that the city must commit to restoring East Market Street to its former glory.
"I think the sequence of the walk from City Hall to Independence Hall ought to be one of the great walks in America," Gupta said.