Federated acquired The May Department Stores Company, then the parent company of L. S. Ayres, in 2006 and announced plans to convert most of the May Department Stores brands to Macy's. As part of this, the Lazarus-Macy's store was rebranded again to just Macy's. Castleton Square was one of four malls in Indiana to have both a Macy's and a division of May Department Stores, so in all four cases Federated chose to maintain the existing Macy's and close the acquired stores. As a result, the L. S. Ayres location was closed in mid-2006. A year after closure, the building was demolished for a new outdoor concourse featuring Borders Books & Music, an AMC Theatres multiplex, Johnny Rockets, Stir Crazy, Cold Stone Creamery, and H&M. Following the closure of Borders in 2011, its space was renovated for the clothing store Forever 21. On May 31, 2018, it was announced that the two-story Sears store would close in September 2018, along with 62 others across the country. At the time of closure, it was the last remaining Sears in Indianapolis. The same year, Macy's announced that the Castleton Square store would be part of its "Growth 50" campaign to add new options for shoppers at some of its more profitable locations. Included in the renovation are new lighting, fitting rooms, and restrooms, expanded furniture departments, dedicated locations for online pickups and returns, and mobile payment options. As of 2019, Castleton Square remains the largest mall in the state of Indiana, with more than 130 stores.