With struggling sales and lower profits, department store giant Macy’s is turning to its numerous real estate assets, according to Forbes.
Macy’s said it entered into a partnership with Toronto-based Brookfield Asset Management to exclusively develop around 50 real estate locations, including the redevelopment of existing stores or strips of unused land near existing stores. The deal covers mostly owned and ground-leased locations in shopping malls.
Macy’s also announced that it is selling its 248,000 square foot Union Square men’s store in San Francisco for $250 million, as well as its store in downtown Portland for $54 million.
In 2015, Macy’s said it has announced or completed asset sales with anticipated proceeds exceeding $800 million and “we expect continued progress going forward.”
Macy’s and other retailers are trying to cope with emerging competition from Amazon.com, as well as lower foot traffic and an overall more competitive environment with deep price discounts.