Macy’s is once again facing the prospect of a rival retail brand advertising directly in front of its flagship store in Manhattan, following the removal of its iconic shopping bag sign over the summer. Kaufman Realty, which owns space at the corner of Broadway and 34th Street, is installing new four-story digital billboards where the 60-year-old Macy's bag sign once stood. The original sign was taken down in July after Macy's failed to reach a new agreement with Kaufman.
Kaufman is now seeking prominent national companies with substantial annual sales to advertise on the new digital displays. Meridian Retail Leasing, hired by Kaufman to manage the leasing process, is reportedly in discussions with major national brands. According to Meridian Retail Leasing President James Famularo, potential tenants have expressed interest in rotating their products on different sides of the billboard.
The corner location is a highly trafficked area, drawing an estimated 240,000 pedestrians daily. The adjacent retail space, which housed a Sunglass Hut for decades until its recent closure, is being offered for lease for the first time in over 30 years. A Burger King location near the subway entrance also closed recently.
Kaufman is reportedly seeking $2.2 million annually for the 1,300-square-foot retail space. Macy's has declined to comment on the potential new advertising arrangements but stated in June that it is "always actively looking for opportunities that promote the Herald Square flagship to New Yorkers, and tourists around the globe," and that it would announce refreshed branding that "honors our heritage while reflecting the future of our flagship."
This situation echoes a legal dispute from 2021 when Macy's sued Kaufman after learning Amazon was slated to take over the billboard advertising space when Macy's lease expired. In its lawsuit, Macy's argued that the billboard was visually part of its department store and that Kaufman was bound by a "restrictive covenant" prohibiting advertising deals with Macy's competitors. Kaufman disputed these claims, asserting its right to license the advertising space to any third-party advertisers. Amazon ultimately did not proceed with advertising on the billboard, and Macy's stance on the matter remains unchanged, according to sources familiar with the retailer's position.