The retailer’s parent company, Hudson’s Bay Company (HBC), sold the iconic 676,000-square-foot building to WeWork for $850 million in fall 2017, in a deal aimed to lower HBC’s debt levels and give WeWork a new headquarters in New York City.
“After evaluating best-use scenarios for its New York City Fifth Avenue location, the company has decided not to maintain a presence at this location following turnover of the building to WeWork,” Lord & Taylor said in a release, according to Chain Store Age. “Exiting this iconic space reflects Lord & Taylor’s increasing focus on its digital opportunity and [Hudson’s Bay Co.’s] commitment to improving profitability.”
The online store has been touted as a “premium” shopping destination on the web, providing a way for Lord & Taylor to reach customers who don’t typically visit its stores. While Lord & Taylor’s website has around 2.2 million unique visitors, Walmart boasts 101 million visitors to its site.
“This is a tremendous growth opportunity,” RJ Cilley, a senior vice president of digital at Lord & Taylor, said in a conference call at the time. “We are growing our footprint to reach exponentially more customers.”