Macy’s Opening Up to 30 Small-Format Stores
Macy’s is diving into its small-format store strategy, potentially tripling the total number of its small-format stores through fall 2025.
The No 1. RIS department store retailer announced starting in 2024, up to 30 new Macy’s small-format locations will open across the country. This expansion is in addition to the nearly 15 small-format Macy’s and Bloomie’s locations that Macy’s, Inc. currently operates. Beginning in 2023, new Macy’s small-format stores will operate under the iconic 'Macy's' nameplate.
Paired with a “premier” digital experience, Macy’s said these small-format stores enhance the company’s store portfolio with a mix of on- and off-mall locations. The stores offer an open environment that is roughly 1/5 the size of the full-line stores. Customer feedback continues to remain high in areas such as the physical store environment, ease of checkout and the helpfulness and availability of colleagues, the retailer said in a statement.
“We are excited to accelerate the expansion of our small-format strategy as we continue to innovate and reposition our store portfolio to better serve our customers,” said Adrian Mitchell, chief operating officer and chief financial officer for Macy’s, Inc. “Our small-format stores are efficient to operate, provide the customer with a shopping alternative within our omnichannel ecosystem and present a unique opportunity to target high-traffic shopping centers. Our small-format strategy is one way we intend to harness the full power of the Macy’s brand to deliver sustainable, profitable sales growth for Macy’s, Inc. beginning in 2024.”
The news comes on the heels Macy’s announcing the expansion of its small-format locations into the U.S. Northeast and Western regions.
Bloomie’s, the smaller store concept by Bloomingdale's, recently announced its inaugural West Coast location in Seattle, WA, set to open in November. This will be the third Bloomie's location to open, adding to existing stores located in Fairfax, VA, and the Chicagoland area. Bloomingdale’s intends to further expand its small-format store footprint in the future.
Macy’s said small-format stores play a pivotal role in the company’s omnichannel strategy to expand in existing markets, enter new markets and maintain a presence in existing markets by replacing stores that may not be as productive. “Macy’s small-format stores are strategically located in off-mall shopping centers to bring the brand closer to existing and desired customers while also encouraging more frequent visits. Year-to date through spring 2023, Macy’s small-format stores open for more than one fiscal year have achieved positive comparable owned plus licensed sales growth.”
“Over the past three years, we've gained valuable insight and have been methodical in our approach to our small-format stores,” said Marc Mastronardi, chief stores officer for Macy's, Inc. “We have taken the time to test and iterate a distinct shopping experience that focuses on convenience, curated merchandise, local events and services that have allowed us to cultivate a highly engaged customer base.”