>> MACY'S UNION SQUARE LOCATION IS AMONG THE 150 STORES THAT WILL BE CLOSING NATIONWIDE. >> BUT THAT FLAGSHIP STORE WILL STAY OPEN UNTIL THE PROPERTY IS SOLD, WHICH LIKELY WON'T HAPPEN UNTIL THE END OF THE YEAR AT THE EARLIEST. >> FOR MORE ON TODAY'S ANNOUNCEMENT AND ITS IMPACT, LET'S GO TO ABC7 NEWS REPORTER SUZANNE PHAN SUZANNE. >> SO CHRIS AND LARRY CITY LEADERS ARE TRYING TO REMAIN OPTIMISTIC, BUT THIS IS CLEARLY A BIG BLOW FOR SAN FRANCISCO AND FOR HUNDRED MACY'S STORE EMPLOYEES AND IT'S ALSO A BIG DISAPPOINTMENT FOR MANY SHOPPERS. I'M REALLY SAD ABOUT THAT, CHRISTINE ANDERSON CAN'T BELIEVE THE LATEST NEWS ABOUT THE MACY'S STORE IN SAN FRANCISCO'S UNION SQUARE. >> I'M SAD ABOUT IT. UNION SQUARE, I MEAN, THIS IS THE HEART OF THE CITY, ANDERSON SAYS. >> WHEN IT COMES TO SHOPPING, SHE'S OLD SCHOOL. SHE PREFERS TO SHOP IN PERSON. >> I NEED TO TOUCH IT. I NEED TO SEE IT. >> MACY'S SAYS 150 OF ITS STORES WILL CLOSE OVER THE NEXT THREE YEARS. 50 OF THEM BY THE END OF THIS YEAR. THE UNION SQUARE LOCATION WILL NOT BE PART OF THE FIRST 50 CLOSURES. MAYOR LONDON BREED SAYS MACY'S IS SELLING THE PROPERTY AT UNION SQUARE AND WILL REMAIN OPEN UNTIL AFTER THE SALE OR TRANSITION. THE MAYOR SAYS THE MOVE HAS NOTHING TO DO WITH WHAT'S HAPPENING IN DOWNTOWN SAN FRANCISCO. >> SO WE'VE HAD EVEN THIS PAST HOLIDAY SEASON BETWEEN NOVEMBER 20TH AND THE END OF THE YEAR. WE'VE SEEN A SIGNIFICANT DECLINE IN CRIME. AND SO WE KNOW THIS HAS NOTHING TO DO WITH THAT DECISION. IT'S REALLY A LARGER BUSINESS DECISION THAT MACY'S HAS MADE. >> MACY'S SAYS THE CLOSURES ARE PART OF A SHIFT IN BUSINESS STRATEGY FROM LARGE STORES AND MALLS TO MORE BOUTIQUE SHOPS. MACY'S IS THE LATEST IN THE LIST OF ICONIC UNION SQUARE IN DOWNTOWN RETAIL STORES TO CLOSE, INCLUDING NORDSTROM AND THE WESTFIELD MALL. THE MAYOR SAYS THE CLOSURE IS DISAPPOINTING, BUT SHE'S HOPEFUL FOR CHANGE. THERE ARE DEFINITELY POSSIBILITIES HERE. >> THIS IS NOT LIKE NORDSTROM'S, WHERE THEY SAY WE'RE LEAVING, WE'RE EXITING, THE PRESIDENT AND CEO OF UNION SQUARE ALLIANCE SHARED THIS QUOTE. >> I BELIEVE THAT WE SHOULD WORK TOWARD A SOLUTION THAT ALLOWS MACY'S TO KEEP THIS ICONIC STORE OPEN. HOWEVER, IF THAT DOES NOT COME TO PASS, OUR EXPECTATION IS THAT A NEW OWNER FOR THIS ICONIC SITE WILL COME FORWARD TO CONTINUE A FRESH AND VIBRANT VISION AT THIS CRITICAL LOCATION. MANY SEE THE ICONIC MACY'S WILL BE HARD TO REPLACE. THE STORE EMPLOYS ABOUT 400 WORKERS, MANY OF THEM UNION EMPLOYEES, SAYS JIM IRBY WITH UFCW LOCAL FIVE. >> THESE ARE FOLKS THAT HAVE WORKED AT THIS STORE FOR DECADES TO GIVE THEIR LIFE, YOU KNOW, AND TO LIVE IN THE COMMUNITIES IN WHICH THEY WORK, IRBY SAYS. >> AS THE CITY PIVOTS, IT'S IMPORTANT TO MAINTAIN GOOD PAYING JOBS, AND SAN FRANCISCO CULTURE IN MACY'S WAS A PART OF THE CULTURE OF SAN FRANCISCO. >> WHEN YOU THINK ABOUT CHRISTMAS AND THE CHRISTMAS TREE AND THE. SO I JUST THINK MAINTAINING THE CULTURE IN A PIVOT IS IMPORTANT. >> AND WHEN MACY'S UNION SQUARE DOES CLOSE, IT WILL BE A BIG HIT TO THE CITY FINANCES AS WELL. NOT ONLY WILL THE CITY LOSE SALES TAX REVENUE, ACCORDING TO THE CITY COMPTROLLER'S OFFICE, THE STORE GENERATES APPROXIMATELY $2.3 MILLION IN PROPERTY TAX ANNUALLY FOR THE CITY'S GENERAL
