Macy’s is once again facing the threat of a rival retail brand advertising right in front of its flagship store in Manhattan after its iconic shopping bag sign was torn down there over the summer, The Post has learned.
The awkward prospect comes as Kaufman Realty — which owns space in the corner of the gigantic department store at Broadway and 34th Street — is installing new four-story digital billboards where the gigantic Macy’s bag was perched for 60 years. The sign was torn down in July after the store failed to reach a deal with the real estate firm.
Now Kaufman is courting “big national companies that do billions in annual sales” to advertise on the billboard, according to Meridian Retail Leasing President James Famularo, whom Kaufman hired several months ago.
Kaufman is also looking to potentially lease the tiny space at the base of 1313 Broadway where a Sunglass Hut used to be, Famularo told The Post.
“We are talking to a lot national brands,” he said. “The conversations I’ve been having is that the tenant wants both sides of the billboard to rotate their product on different sides.”
The coveted corner draws over 240,000 pedestrians per day, and the little retail space is available “for the first time in over 30 years,” according to Meridian’s marketing material.
The Sunglass Hut closed last week after a decades-long run at the location, as did a Burger King below the store and by an entrance to the Herald Square subway. It’s not clear whether Sunglass Hut declined to renew its lease, and the company did not immediately respond to a request for comment.
Kaufman is asking for $2.2 million per year for the 1,300-square-foot-space, according to a source.
Macy’s declined to comment on the latest with the ad space.
“We’re always actively looking for opportunities that promote the Herald Square flagship to New Yorkers, and tourists around the globe,” a spokesperson for the retailer said.
In June, the retailer told The Post it will “soon announce refreshed and dynamic branding for Macy’s Herald Square that honors our heritage while reflecting the future of our flagship.”
That same month, Kaufman CEO Edward Hart said, “We are in discussions with Macy’s, no question about it.” He declined to comment for this article.
Back in 2021, Macy’s sued Kaufman when it learned Amazon was poised to take over the billboard after Macy’s lease for it expired.
“To the naked eye, the billboard is on Macy’s department store,” Macy’s said in the lawsuit filed in state supreme court.
The company claimed that Kaufman was bound by a “restrictive covenant” that’s filed in the Office of the City Register and said the real estate firm was “forever” prohibited from making an advertising deal with a Macy’s competitor.
Kaufman dismissed Macy’s claims, saying it has “the right to license the sign space to any off-site advertisers” without restrictions.
Amazon ended up not advertising on the billboard.
Macy’s position has not changed, sources with knowledge of the retailer’s thinking told The Post.
