Editorial: Macy's move is a blow but not a knockout

Macy's decision to close its division headquarters is a setback for Minneapolis. In addition to 910 good jobs, the city is losing a piece of its retailing history more than 100 years after George Dayton opened the business that Minnesotans came to know and love as Dayton's.

It's appropriate to mourn the loss of a strong corporate presence and feel sympathy for the employees who are losing desirable jobs in an increasingly bleak economic environment. However, there's no need to overreact when assessing the impact on the local economy.

The 910 positions include senior executives, human resources and finance staff as well as marketers, merchandisers and art directors. Some have been with the company since its Dayton's days and are talented, extremely employable professionals. Others are members of a younger creative class that is a key to the future of the local economy. Members of both groups could land with companies such as Target, Best Buy and Supervalu, as well as employers outside the retail sector.

On the flip side, some Macy's North employees no doubt have very specific merchandising skills and other department store experience that may not easily translate to other companies, especially in a slumping economy. Many of them will need to relocate, leave retailing or learn new skills.

Context is critical. Losing 910 positions is a blow, but there are 2.7 million jobs in our state's economy. Minnesota's unemployment rate of 4.9 percent is closer than ever to the national number, which now stands at 5 percent, but it's lower in the metro area. Minneapolis Downtown Council President and CEO Sam Grabarski told the Star Tribune that the 15 largest employers downtown added 1,800 people in 2007, an increase of 4 percent over 2006. After its cuts, Macy's will have a total of about 3,000 employees at 11 department and furniture stores in the Twin Cities.

What's more difficult to measure, but ultimately more important, is what the loss of the division headquarters will mean for downtown Minneapolis. Despite its parent company's financial struggles, Macy's North has been a solid corporate citizen, and division Chairman Frank Guzzetta has been an outstanding community leader. Guzzetta, who will retire this spring, is credited with convincing Macy's to sign off on the $15 million renovation of the downtown Minneapolis store two years ago.

Guzzetta has also helped recruit other retailers to the city, and it's a shame that those efforts will be even more difficult -- and important -- in the wake of the decision made by his parent company.

The Twin Cities will recover from the loss of jobs on Nicollet Mall. There are 3,000 remaining Macy's employees who hope their parent company will recover soon, too.