Popular department store closing after monthslong controversy

The past few years have been really tough on retail. But you could argue that shopping malls have been forced to bear the brunt.

Malls may not be dying like some experts claim. But they've definitely been changing out of necessity.

Malls need tenants to survive. It’s that simple. But in recent years, a number of big names in the retail space have closed stores, including:

• Forever 21
• Claire's
• Express

Worse yet, a number of mall anchors have closed their doors over the past few years. Some notable names include:

• Macy's
• JCPenney
• Lord & Taylor

When malls lose anchor tenants, it can deal them a harsh blow, since there aren't always comparable retailers waiting to take over those leases.

As retail expert and TheStreet Co-Editor-in-Chief Daniel Kline says, when anchor stores close, "There’s probably not a traditional retailer looking to move in. That’s why so many malls have added gyms, trampoline parks, and other non-traditional options. It’s kind of a work in progress that’s somewhat unique to each market."

Neiman Marcus mall anchor store to close

Sometimes, when a retailer decides to leave a mall, it creates a true burden for the mall operator. But that's not always the case.

Saks Global has sold a Neiman Marcus store that anchors the Willow Bend shopping center in Plano, Texas. But that decision won't leave the mall in the lurch.

The developer acquiring the property is looking to reinvent the mall as a mixed-use center to be renamed “The Bend.” It also purchased the Macy's anchor store last year.

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“The sale was a mutual decision that allows the developer to bring its vision for the area to life, building on the retail foundation with the introduction of new residential, dining and entertainment uses,” a Saks Global spokesperson said in a statement. “This also provides our company with the opportunity to strategically reinvest in areas of our business that drive growth and position the company for long-term success.”

The Willow Bend Neiman Marcus location will remain open until January 2027.

But while the Willow Bend closure may have been a mutually beneficial decision, a nearby Neiman Marcus store has courted controversy since early in the year.

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Back in the winter, Saks announced plans to suddenly close its flagship Neiman Marcus store in downtown Dallas after a landlord dispute. Saks then said it would keep its downtown store open at least through the 2025 holiday season, all while reimagining the space and store experience.

The city of Dallas has been putting a lot of pressure on Saks to keep the flagship Neiman Marcus store open for the long haul.

Malls need to adapt to survive

It’s a good thing that Neiman Marcus isn’t ditching the Willow Bend shopping center so much as closing in a manner that seems to benefit the developer of the property.

But the reality is that many retail stores are abandoning malls. And shopping centers that want to survive are going to need to learn to be flexible, especially as a growing number of department stores continue to pursue an off-mall strategy.

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As RTMNexus CEO Dominick Miserandino says, "Those anchor stores usually are the pull to the mall, the pull driving the traffic...Without the big anchor stores, the smaller stores are going to feel it."

The good news, though, is that malls have a prime opportunity to shift into mixed-use properties. That could mean replacing traditional retail tenants with:

• Residential units
• Office space
• Medical centers

Malls can also replace anchor tenants with entertainment hubs beyond traditional movie theaters — think mini-golf courses, arcades, and even indoor amusement parks.

Ultimately, it’s the malls embracing these opportunities that stand to thrive at a time when giant shopping hubs may not have the same allure they once did. 

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