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The closure of Saks Fifth Avenue stores in Tysons and Friendship Heights this month has left landlords with hundreds of thousands of square feet to fill—and intensified questions about what should replace the traditional department store anchor.
For decades, anchors such as Saks helped draw shoppers whose visits benefited smaller retailers throughout a mall. Saks was among the original anchors at Tysons Galleria when the McLean shopping center opened nearly 40 years ago. Its parent company filed for bankruptcy earlier this year.
Jie Zhang, a retail and marketing professor at the University of Maryland’s Robert H. Smith School of Business, said declining department stores are pushing malls to find new attractions that give customers reasons to visit more frequently and stay longer.
Malls turn toward experiences and mixed uses
Property owners are recruiting new tenants for former department stores, dividing large spaces or renovating them for a wider range of uses.
Amit Arora, a professor at the University of the District of Columbia’s School of Business and Public Administration, said stronger malls are becoming more experience-focused, while aging and weaker properties are being converted into mixed-use districts or entirely different developments.
Lakeforest Mall in Gaithersburg is undergoing a $1.2 billion redevelopment that illustrates the repurposing approach. Tysons Corner Center, meanwhile, is adding attractions designed to increase visits and time spent at the mall.
Hershey Super Sweet Adventure, a candy-themed attraction, opened in April inside the former Pottery Barn at Tysons Corner Center. In 2027, the mall’s former Lord & Taylor space is scheduled to become a supersized DICK’S House of Sport.
The “play while you shop” concept can be three times the size of a standard DICK’S Sporting Goods store. Customers can test equipment and participate in activities that may include an indoor playing field, golf simulators, batting practice and rock climbing. The stores also host birthday parties.
DICK’S plans to open 14 additional House of Sport locations this year, including sites in Gaithersburg and Annapolis.
Jesse Benites, assistant vice president of national operations at Tysons Corner Center owner Macerich, said the concept is expected to have a major effect on the former Lord & Taylor wing. He said a House of Sport that recently opened at one of the company’s leading New Jersey shopping centers increased both sales and traffic for the store and its neighbors.
Traditional anchors remain part of the mix
Benites rejected the idea that department stores have lost all value to malls. He said Tysons Corner Center’s established anchors continue to perform well and invest in their properties.
Bloomingdale’s has completed substantial renovations, while Macy’s has remodeled its cosmetics, men’s and women’s departments and is updating its vertical transportation. Nordstrom is also investing in its space.
At the same time, Tysons Corner Center has used pandemic-era and other closures to add nonretail businesses while expanding its restaurant and entertainment offerings.
Foot traffic at the mall increased 10% last year, reaching 18 million visitors, and Macerich expects growth to continue this year. The property opened, remodeled or relocated 33 stores during the past year, and Benites said leasing activity remains strong.
Onelife Fitness eyes the former Saks
Retail experts caution that an anchor’s departure may create a short-term setback without signaling the death of a mall. Large vacancies can also attract businesses seeking space that would otherwise be difficult to find.
About six weeks after Saks Global announced its closures, a land-use attorney contacted Fairfax County’s zoning administrator on behalf of Onelife Fitness.
The company was interested in converting the 105,000-square-foot Tysons Saks into a full-service fitness facility. Onelife completed a similar project in 2025, transforming vacant office space in the Mosaic District into a 53,000-square-foot health club.