Macy's Said Seeking Grocery Store for Flagship Chicago Site: Report

CHICAGO -- In an effort to attract the growing urban residential population, Macy's Inc. is reportedly closer to bringing a grocery store to the basement of its flagship department store on State St. here.

Frank Guzzetta, chairman of Macy's North, was quoted in the Chicago-Tribune as saying that the department store chain is talking to several companies about opening a 20,000-square-foot supermarket at the location, and that a deal could be reached as soon as early next year.

While Guzzetta declined to disclose potential candidates, he said of the store that he “would like it to be organic."

Macy's first indicated it was seeking a grocery store for its State Street site last year, as it prepared to convert Marshall Field's units to Macy's, although it provided minimal details.

At one point, according to the paper, Macy's originally held discussions with Supervalu-owned Sunflower Market -- which currently has a store in the Lincoln Park section of Chicago – but a deal did not materialize. Supervalu is also the parent company of the parent of Chicago’s market leader, Jewel Food Stores.

Chicago real estate developer Joseph Freed and Associates LLC also said it wants to bring a grocery store to the basement of the former Carson Pirie Scott flagship location now called Sullivan Center. The paper said Freed is redeveloping the portion of the building that once housed Carson’s, turning 250,000-square-feet into retail space and the remaining 350,000-square-feet into office space.

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