Macy’s is again facing competition from a rival retail brand that plans to advertise right outside its flagship store in Manhattan. This comes after the beloved shopping bag sign was removed over the summer, as reported by The Post.
The situation arose after Kaufman Realty, which owns the area adjacent to Macy’s at Broadway and 34th Street, decided to install four-story digital billboards in place of the iconic sign that hung there for six decades. The removal happened in July when Macy’s and the real estate firm couldn’t come to an agreement.
Kaufman is currently seeking to attract large national brands—those that generate billions in sales annually—to promote their products on these new billboards, as stated by James Famularo, president of Meridian Retail Leasing, who has been engaged by Kaufman for this initiative.
Famularo noted that discussions are ongoing with various national brands interested in utilizing the ad space, remarking on how tenants are looking for opportunities to have their products showcased on different sides of the billboard.
This prime corner attracts over 240,000 pedestrians daily, and the small retail space has been available for lease for the first time in more than 30 years, according to promotional materials from Meridian.
The recently shuttered Sunglass Hut, which operated in that space for many years, closed last week, alongside a nearby Burger King, leaving questions about whether Sunglass Hut opted not to renew its lease—no comment was available from the company.
Kaufman is aiming for a rental price of $2.2 million annually for the 1,300-square-foot retail space, sources say.
Macy’s, for its part, has chosen not to comment on the ad space situation, but a spokesperson emphasized the company’s ongoing interest in promoting its Herald Square flagship to both locals and visitors.
In June, Macy’s indicated to The Post that they would soon reveal a refreshed branding strategy that pays homage to their legacy while also looking ahead to the future.
Kaufman’s CEO Edward Hart mentioned earlier that negotiations with Macy’s were indeed happening, although he refrained from providing further details for this article.
Macy’s previously filed a lawsuit against Kaufman in 2021 when it became aware of Amazon’s plans to take over the billboard space following the expiration of Macy’s lease.
The lawsuit claimed that, visually, the billboard appears to belong to Macy’s, and the retailer argued there was a “restrictive covenant” recorded with the city that essentially barred Kaufman from entering into ad deals with Macy’s competitors.
Kaufman contested Macy’s position, asserting its right to rent the sign space to outside advertisers without limitations.
Interestingly, Amazon ended up not proceeding with its advertisement plans for the billboard, and sources close to Macy’s indicate that the retailer’s stance remains unchanged.
