Macy’s is coming to Santee.
And while there’s no parade planned, Macy’s should be open at 21-year-old Santee Trolley Square before Thanksgiving — and in time for Black Friday.
Director of Real Estate
Kimco Realty, San Diego
The department store originally founded in 1858 will fill the nearly 30,000-square foot space where anchor Bed Bath & Beyond was located until it shuttered last December, part of more than 350 bankruptcy-related closures.
Santee will be the first California location for Macy’s new “small format” concept. The company has built only eight others across the country since opening its first in 2020. New locations with the same concept are planned for Boston and Las Vegas.
Zach Blatteis, director of real estate for Kimco Realty in San Diego, which oversees 21-year-old Santee Trolley Square, said the new Macy’s “represents a significant victory for the center and community.”
Kimco has ownership interest in 532 shopping centers totaling 90.8 million square feet of gross leasable area in 28 states, including 86 centers in California with 19 in San Diego County.
Outperforming Other Retail Centers
Multiple factors contributed to Macy’s decision for the location, according to Macy’s spokeswoman Stephanie Jimenez, including geography, customer demographic and desired footprints.
Simple economics also likely played a role.
Senior VP
JLL
According to a report shared by the City of Santee, the 103-tenant retail cluster “power center” that is in part comprised of Santee Trolley Square outperformed other retail outlets of similar size in sales tax revenue, including the 118-tenant Carmel Mountain Plaza, as well as East County competitors Grossmont Center (92 tenants) and Parkway Plaza (159 tenants).
Santee’s retail success allowed Trolley Square to get the tenant it wanted.
Bryan Cunningham, senior vice president at JLL, the leasing broker representing Kimco, said JLL had offers from Nordstroms Rack, Burlington and others, to fill that space.
“Kimco really wanted Macy’s,” Cunningham said. “Santee Trolley Square to be the first small-format market by Macy’s in the state was important to them. Financially, other deals were similar, but we felt like this was best user and best tenant for that space.”
Iconic Brand’s Growth Strategy
Macy’s small format is part of the company’s strategy to bounce back from a reported slowdown in sales growth.
In its second quarter earnings presentation released in late August, Macy’s reported that its stock has fallen about 38% this year. Analysts predict that it could close at its lowest level since January 2021.
Store Manager
Macy’s Santee
For the quarter that ended July 29, Macy’s reported net sales of $5.13 billion. That was down 8.4% from a year ago. The company reported adjusted diluted earnings of 26 cents per share, down 74%. Compared to one year ago, its brick-and-mortar sales fell 8% and digital sales decreased 10%. Additionally, year to date, Macy’s credit card sales are down about 24% from a year ago.
Macy’s in Santee Trolley Square at the corner of Mission Gorge Road and Cuyamaca Street is slated to open in November and plans to hire around 75 colleagues for all four stores, including a mix of transfer colleagues and new hires.
“We’re excited about the value and enhanced shopping experience Macy’s small format will bring to new and existing customers within the San Diego area and community,” said Enrique Valenzuela, store manager of Macy’s Santee Trolley Square.
As a growth vector for Macy’s, Inc., Macy’s small-format stores are a key driver in the company’s stated strategy to reposition its store footprint, Jimenez said.
Small-format stores play several roles in the company’s omnichannel market strategy by either expanding its presence in a current market, maintaining market presence by replacing underperforming locations or entering new markets where Macy’s doesn’t have a presence.
Kimco
FOUNDED: 1966; publicly traded since 1991
CEO: Conor C. Flynn
HEADQUARTERS: Jericho, New York
BUSINESS: Real estate investment trust (REIT)
REVENUE: $1.7 billion (2022)
STOCK: KIM (NYSE)
EMPLOYEES: 639
WEBSITE: www.kimcorealty.com
CONTACT: 866-831-4297
SOCIAL IMPACT: Give $1 million annually in cash and in-kind contributions to support small businesses and charitable causes in the communities in which they operate.
NOTABLE: Kimco Realty is North America’s largest publicly traded owner and operator of open-air, grocery-anchored shopping centers and mixed-use assets.
Macy’s Inc.
FOUNDED: 1858
CEO: Jeff Gennette
HEADQUARTERS: New York City
BUSINESS: Department store/Omnichannel retail company
REVENUE: $25.7 billion (2022)
STOCK: M (NASDAQ)
EMPLOYEES: About 95,000
WEBSITE: macys.com
CONTACT: 800-289-6229 or customerservice@macys.com
SOCIAL IMPACT: Macy’s Mission Every One initiative has pledged $5 billion through 2025 to support and create a more sustainable and equitable future.
NOTABLE: Macy’s has conducted a Thanksgiving Day Parade in New York City since 1924 and its flagship at Herald Square in New York was the first building in the world to have modern escalators, which were built in 1902 and made of wood.
