Why Accelerating Macy’s Growth Off-Mall Is Important

Retail Why Accelerating Macy’s Growth Off-Mall Is Important Walter Loeb Senior Contributor Opinions expressed by Forbes Contributors are their own. I cover major developments in the retail industry. New! Follow this author to improve your content experience.

Got it! Jul 22, 2022, 07:15am EDT | Share to Facebook Share to Twitter Share to Linkedin (Bita Honarvar/AP Images for Macy’s) Copyright 2021 The Associated Press. All rights reserved Macy’s will open four off-mall, smaller format stores this fall. The new stores will include Market by Macy’s; one store will also introduce the concept of combining a Market by Macy’s and Macy’s Backstage off-price as well.

Expanding with small stores makes good sense. Smaller stores are easy to situate in key locations, they are easy to replicate, and can be easily accessible for shoppers. While they are not in destination locations such as malls, these stores can be a vital lifeline for many customers who want quick service or a quick gift.

These stores will be curated to reflect the needs and tastes of the neighborhood they will serve. Because of size, they will offer a limited assortment. So far, Market by Macy’s has three stores in Texas and two in the Atlanta area.

One of the new stores will be in Suwanee Ga. (opens August 20). This is a third location in the Atlanta area.

Then there will be a store in Chesterfield Commons in the St. Louis area. The Macy’s store in Chesterfield Commons will close when the new store opens.

By the end of 2022, Macy’s plans to have eight small format stores in operation. The first dual Market by Macy’s and Macy’s Backstage store will open this fall in Chicagoland at Evergreen Park, Il. Since 2015, Macy’s Backstage has expanded to more than 300 Macy’s stores nationwide, including nine free-standing locations.

The newest Backstage free-standing location opened in Grapevine Mills in the Dallas-Fort Worth area in the Spring of 2022. This is a key priority for the broad-reaching Polaris effort underway at Macy’s. The company now seeks to reposition many of its stores to better serve the diverse interests of its customers.

The locations will also effectively support omnichannel sales growth. “As exciting brand extensions, Market by Macy’s and Macy’s Backstage each offer unique shopping experiences – one celebrates discovery and convenience, while the other appeals to the customer who loves the thrill of the hunt for greater value” says Marc Mastronardi, Macy’s Chief Stores Officer. MORE FOR YOU ‘No Christmas Trees, No Christmas Trees’ Another Shortage May Be On The Way The Grocery Business Is Going To Get Much More Competitive Costco Addresses Supply Chain Pains By Chartering Their Own Ships Macy’s is evolving into a new retail business.

These mini stores represent a new strategy and will require ongoing further analysis to ensure that they remain innovative and attractive to the customer. They must deliver the service and product assortment experiences that the customer expects. In that vein, the company will rapidly expand its global partnership to bring Toys “R” Us products to every store in America in time for the holiday season.

That effort, which is likely to add substantial sales volume, requires that all stores, including the mini stores, be prepared to feature the toy selection . POSTSCRIPT : The excitement of new mini stores with innovative displays and assortments that reflect local tastes will be rewarding. The addition of the Toys “R” Us operation in all stores will add even more customer traffic and sales volume.

We could see as many as 100 mini stores in the next three years. Walter Loeb Editorial Standards Print Reprints & Permissions.