TJ Maxx Expands into New York City with Major Herald Square Lease
The discount retail powerhouse TJ Maxx is poised to occupy a substantial 40,000 square foot space on Sixth Avenue in the bustling heart of New York City. This strategic move serves as compelling evidence that the so-called retail apocalypse, often characterized by doom and gloom, may finally be receding into the past.
The new store will take over the ground and lower levels of Herald Towers, located in Herald Square, merely steps away from the iconic Empire State Building, with operations expected to commence by the end of this year.
Deal Details and Industry Insights
Last week, realty firm RIPCO announced the deal, with Vice Chairman Richard Skulnik representing TJ Maxx in the negotiations. According to reports from The Business Journals, the company has signed a ten-year lease for the premises.
The 25-story Herald Towers building comprises approximately 700 residential units and over 100,000 square feet of ground-floor retail space. This space had remained largely vacant since Gap departed in 2020, making TJ Maxx's entry a surprising development in an industry grappling with competition from gyms, medical offices, schools, and fast-food chains for prime locations.
Neil Saunders, Managing Director and retail expert at GlobalData, provided insight to the Daily Mail, stating, 'TJ Maxx is expanding into NYC as it is a highly popular brand, and it sees a huge opportunity to capture more of the New York market from both locals and tourists.' He emphasized, 'The vast, vast majority of TJ Maxx’s sales are made through stores, and the model works as people love coming to treasure hunt and find bargains.'
Saunders challenged pessimistic narratives about physical retail, asserting, 'While there are doom and gloom narratives around physical stores dying out, these are complete nonsense. The vast majority of retail sales still happen through physical stores, and consumers find a lot of satisfaction in visiting shops.' He added, 'The brands that are closing stores are mostly the ones that have not delivered what consumers want. This says more about them than it does about the future of physical shops.'
Strategic Location and Market Context
TJ Maxx will now join prominent retailers in Herald Square, including Macy's flagship store, H&M, MooMoo, IT Italian Trattoria, and Victoria's Secret. This deal represents the company's first new lease in Manhattan in nearly a decade, as confirmed by building owner Jacob Jerome of JEMB Realty in a statement to the Daily Mail.
Furthermore, the opening marks New York City's largest retail lease deal in two years, according to Fox 5. This move contrasts with other retailers that have exited Herald Square, such as Uniqlo, Forever 21, and Kay Jewelers.
Notably, Old Navy closed its location in 2020, a space that Primark is set to occupy soon, but Old Navy is also scheduled to return to Herald Towers later this year, as reported by The Business Journals.
Transformation and Confidence in Herald Square
Herald Square has undergone what JEMB described as a 'dramatic transformation' over the past year. In a statement, they highlighted, 'Fueled by surging foot traffic, unrivaled transportation infrastructure, and a renewed wave of institutional retail commitments.'
The statement continued, 'In the last ten months alone, more than 100,000 square feet of retail space has been leased at Herald Towers, including deals with Old Navy, TJ Maxx, and Moo Moo Futu—signaling strong retailer confidence and sustained leasing velocity in the submarket.' JEMB added, 'We are proud to welcome TJ Maxx alongside Old Navy, further accelerating the resurgence of Herald Square retail and reinforcing the corridor's role as one of the most important shopping districts in the country.'
Broader Retail Industry Challenges
This expansion occurs against a backdrop of challenges in the retail sector nationwide. Last month, Saks Global filed for bankruptcy, and Macy's announced plans to close 14 'underproductive' stores across 12 states. This follows over 8,000 chain retail store locations shutting down in 2025 across multiple companies.
Ward Kampf, President of Northwood Retail, previously told the Daily Mail, 'America has been over-retailed. We built and built, focusing on growth, expansion, and development, and now the focus is on profitability, performance, and margins.'
Despite the landlord confirming the store opening, a spokesperson for RIPCO stated that TJ Maxx said it 'has not announced a new store for New York City at this time' when reached for comment by the Daily Mail.
