Dillard’s — MacArthur Center’s last anchor store — is downsizing downtown Norfolk location

The last remaining anchor store at MacArthur Center in Norfolk is downsizing.

Dillard’s plans to convert its downtown Norfolk location into a smaller Dillard’s Clearance Center store, a spokesperson said in an email Thursday.

The conversion, which is expected to happen during the next few weeks, will transform the 250,000-square-foot store from three floors to one. The store’s spa and salon will close, as will its in-store tailor.

Clearance Centers, true to their names, sell clearance merchandise from area Dillard’s stores at discounted prices, according to the spokesperson. The store will liquidate its current merchandise.

The discount stores have made waves on TikTok, in which some videos on the topic have racked up more than 1 million views. A trip to a Houston Dillard’s Clearance Center by video-maker Ava Meurer led to deals like heels for around $15, $7.99 jean shorts, $7.99 tops, prom dresses for as low as $38.50 and even Coach Tabby bags for around $139.

The spokesperson said the store conversion was happening for a variety of reasons, but did not give specifics. MacArthur Center has been declining for years, losing retailers like Nordstrom and the Apple store. The mall has dropped in value by $126 million during the past five years, according to court documents.

Dillard’s owns the store, located at 200 Monticello Ave., but leases the ground it sits on from the city of Norfolk.

Norfolk City Council members directed the city to spend $18 million to purchase the rest of MacArthur Center earlier in June, setting the stage for redevelopment. City officials did not respond to a request for comment Thursday afternoon.

Employees at the Norfolk Dillard’s will be offered positions at other Hampton Roads stores, the spokesperson said. Dillard’s also operates stores in Greenbrier Mall, Patrick Henry Mall and Lynnhaven Mall, according to its website.

The Dillard’s property was last valued at $8.7 million by the Norfolk tax assessor’s office.

When asked if the conversion was a precursor to the store closing outright, the Dillard’s spokesperson said many of its 30 U.S. Clearance Centers have been open for years.

However, the company is “committed to closing under-performing stores where appropriate,” according to its 2022 annual report.

Trevor Metcalfe, 757-222-5345, trevor.metcalfe@pilotonline.com