Center City Macy’s, located in iconic Wanamaker Building, will close in March

Macy’s will close its Center City location in the historic Wanamaker Building, the company announced Thursday afternoon, as part of a wave of 66 store closures across the country.

Macy’s workers were informed that the iconic location, which housed John Wanamaker’s flagship department store for much of the past 115 years, would be shuttered in March.

“It has been more than just a department store, it has been a beloved part of our city’s cultural fabric,” said Alba Martinez, Philadelphia’s commerce director. “For over a century, this location has been a cornerstone of our city’s identity, and its closing represents a profound change.”

City officials sought to downplay the wider import of the news, noting that TF Cornerstone — the New York-based company that seeks to win control of the building — has been in close consultation with city officials about a future for the Wanamaker Building that includes offices, retail, and residential uses.

The closure is the latest drama on a stretch of East Market Street that’s been the focus of a fierce civic debate over the approval of a proposed arena for the Sixers, and further evidence of the decline of brick-and-mortar retail nationwide.

Macy’s decision to shut down operations at 13th and Market Streets is part of a companywide retrenchment.

“Closing any store is never easy, but as part of our Bold New Chapter strategy, we are closing underproductive Macy’s stores to allow us to focus our resources,” Tony Spring, chairman and chief executive officer of Macy’s, said in a statement.

Before the COVID-19 pandemic, the Center City store was one of the company’s strongest-performing downtown locations, but Macy’s has since struggled as the larger department store model fades.

Macy’s has not responded to interview requests about the Center City store closure.

Macy’s opened the 13th and Market store in 2006 and has continued to present the popular Christmas light show in the Grand Court. Visitors still stop to snap photos in front of Wanamaker’s famous “meet me at the eagle” statue. The Wanamaker Grand Court Organ can still be played, in an echo of the building’s original glamour.

» READ MORE: With Macy’s closing, it’s not clear what will happen to the holiday light show

Councilmember Mark Squilla, who represents the area, told reporters that he has talked with the owner of TF Cornerstone, and believes some of these beloved attributes could be preserved for wider public enjoyment.

“TF Cornerstone has said … we [need to] reenvision the retail space so future generations can say, ‘let’s meet at the eagle,’ let’s hear our organ music play throughout the holidays,” said Squilla. “Let’s have opportunities for other generations to enjoy East Market and the Wanamaker Building.”

Customers and workers interviewed Thursday said that the news wasn’t completely unexpected in the wake of escalating vacancy on East Market and the stabbing death of Macy’s security guard Eric Harrison, and the wounding of another security guard, Christian Mitchell, inside the store.

Still, emotions ran high among shoppers and employees alike. Tears filled 74-year-old Kathleen Neary’s eyes when she heard the news.

“It feels like home, like an anchor that brings life to Center City,” said Neary, emphasizing she has been coming at least twice a week to the store for decades. “It’s tradition, and that’s what Macy’s is to the city.”

The rest of the Wanamaker Building, which is carved into condo units owned by different companies, has also struggled since the pandemic.

Philadelphia-based Rubenstein Partners owns a majority stake in the 1.4 million-square-foot space that composes much of the Wanamaker Building, one of the largest office structures in the city.

But along with other office buildings around City Hall, the Wanamaker Building has steadily hemorrhaged tenants as the office sector shrunk post-COVID. The last available data from financial analytics company Morningstar had the occupancy at 23% in March 2024.

At a $45 million loss, the loan on the building was sold in June to New York-based TF Cornerstone, which already owns the part of the building that contains Macy’s. TF Cornerstone is negotiating with Rubenstein Partners to purchase the building outright.

» READ MORE: Philadelphia’s Market Street East searches for growth and renewal — with or without a new Sixers arena

“When Macy’s closes in the spring, TFC plans to begin the transformation of the 114-year-old landmark from retail and predominantly vacant office space, into a mixed-use anchor for Center City, with new entertainment and fitness outlets, shopping, office, and loft apartments all under one roof,” said Maureen Garrity, a spokesperson for TF Cornerstone.

But the colossal building presents unique challenges to such a proposal, as much of the interior is dark and unsuitable for residential use. The cost of coring out the building, essentially demolishing a portion of the interior to allow more windows, would be astronomical.

The move toward a residential use is just the latest evolution for a historic building that has seen retail taking up an ever-shrinking proportion of its square footage.

For much of the 20th century the Wanamaker Building was an iconic beacon of Philadelphia retail, even as its counterparts and competitors lined Market Street to the east.

The thoroughfare between Juniper and Seventh Streets was home to six enormous department stores, most of them local and family-owned.

The street also was studded with national chain and specialty retailers and was patronized by shoppers from throughout the region, especially during the holidays.

The massive granite and limestone edifice that is now Macy’s, and previously was home to Lord & Taylor, Strawbridge’s (for a few months), and Hecht’s, was built as a department store by prominent city merchant John Wanamaker and was dedicated in 1911 by then-President William H. Taft.

The building, designed by Chicago architect Daniel H. Burnham, is listed on the National Register of Historic Places.

The building is protected from wholesale demolition by local preservation regulations, and the interior also enjoys some protections (which is unusual in Philadelphia).

Still, many preservationists and other city residents are concerned about the future of the store’s beloved animated Christmas display, which debuted in 1956, as well as the pipe organ that regularly provides musical entertainment for shoppers and visitors.

“In 2018 we nominated the Grand Court to the Philadelphia Register of Historic Places, meaning that it does have a measure of protection to make sure its essential character is preserved in any future reuse,” said Paul Steinke, executive director of the Preservation Alliance for Greater Philadelphia.

» READ MORE: The Wanamaker Building’s Macy’s may be closing, but its iconic eagle and organ are protected

The fate of Center City’s last department store has worried city policymakers for decades. The industry has been under assault for decades, following the rise of big box stores like Walmart, ecommerce, and evolving consumer tastes.

On East Market Street, the once-booming department store corridor began eroding in the 1970s. Following a series of mergers in the late 20th century, Macy’s was left the last holdout on East Market.

Although the company initially reported that the residential rebirth of Center City Philadelphia was a boon to the store, the COVID-19 pandemic marked a turning point in its fortunes.

“It’s usually empty in here, and it’s been like that since the pandemic. The only time it was crowded was during the holidays,” said Neary, as she absorbed the news of the impending closure on Thursday.

Morgan Lytle, a 19-year-old beauty consultant at Macy’s, agreed. She said she “saw it coming,” calling the retailer “a pretty dead store.”

Policymakers and the Center City District, a business advocacy group, emphasized that the Macy’s closure is reflective of broader industry trends and argued that it was not reflective of the fate of downtown Philadelphia.

Center City Philadelphia’s residential and tourist populations are stronger than they were pre-pandemic, although office workers have never returned to 2019 levels. Retail occupancy slightly lags pre-pandemic norms, but not by much.

“This reflects a fundamental shift in the way people shop, rather than any Philadelphia-specific challenge,” said Prema Katari Gupta, president and CEO of Center City District. “It’s worth looking at the list of [Macy’s] closures. There’s no pattern. It seems like a broad business decision. It has nothing to do with Philadelphia and nothing to do with downtowns.”