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Major Retailer Begins Changing Retail Properties Into Fulfillment Centers


As we’ve previously discussed, retailers are looking how to best position poorly returning retail properties. Macy’s is going to pilot changing some retail locations into distribution centers and one of those is in the Mid-Atlantic. As RetailWire is reporting, Macy’s is going to pilot changing 2 of its stores into fulfillment centers for the holidays.

RetailWire writes, “Macy’s has decided that it will close two of its department stores to on-site shopping for the holidays. The retailer is choosing instead to convert the locations into dark stores that offer in-store and curbside pickup of online orders and enable product returns. The retailer will use stores in Dover, DE, and Littleton, CO, as pilot locations for the dark store test”

The RetailWire story had some interesting statistics from Macy’s sales since COVID started, “CEO Jeff Gennette told analysts on the retailer’s earnings call that 30 percent of online orders were fulfilled by stores (curbside and in-store) in the second quarter and that he saw that “increasing” going forward…We’re building out in terms of our omni-network and our fulfillment strategies, our opportunity to be able to satisfy customers however they want to shop, in a store, curbside or same-day delivery, we will be able to do that,” he added.”

This is an interesting pilot for Macy’s and it is likely we will see more retailers adopt this strategy going forward as the prices on warehouses continue to rise and the price for retail declines. This could be a great option for the owners of retail properties who embrace the change and create options for local, regional and national tenants to utilize the vacant space as dark stores.

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