Retail Closures Are Everywhere
The wave of store closures keeps growing:
- Macy’s plans to close 150 stores by 2026.
- Rite Aid has gone out of business entirely.
- REI and Saks Off 5th are restructuring.
- Advance Auto Parts is closing over 500 locations.
For many, this seems like bad news. For savvy investors, it’s a chance to act.
Why Department Stores Are Struggling
Traditional department stores and big-box retailers were built for a different era:
- Large spaces (50,000–200,000 sq. ft.) designed for wide product selection.
- Customers now shop online for most items.
- High operating costs and aging customer bases make adaptation hard.
Even if these stores fail, the real estate itself often remains valuable. Prime locations still attract strong demand—they just need a new purpose.
Reimagining Retail Spaces
Vacant anchor stores can be repositioned for modern needs:
- Subdivide large spaces: Turn a 150,000 sq. ft. Macy’s into 3–4 spaces for fitness centers, entertainment, medical offices, or value retail.
- Non-retail uses: Convert properties into healthcare facilities, logistics hubs, or residential units (where zoning allows).
Major landlords are already leading the way:
- Simon Property Group and Macerich invest hundreds of millions to revitalize former anchor spaces.
- They are adding hotels, apartments, entertainment venues, and medical offices.
The key: vision, capital, and execution.
How Investors Can Act
To succeed:
- Choose locations with strong fundamentals.
- Check zoning flexibility.
- Estimate realistic lease-up timelines and tenant improvement costs.
- Track closures and available anchor spaces in your target markets.
Southern California is seeing opportunities emerge fast. Proactive investors can capture value before others notice.
Next Steps
Williams Capital Advisors monitors department store closures and helps investors find repositioning opportunities.
Contact Us:
(213) 880-8107 | francisco.Williams@williamscap.ai | williamscapitaladvisors.com
