As it tests out new retail concepts such as pop-up shops, Macy’s has acquired a retail store in New York City that has a rotating selection of items called STORY. Every few months, the store picks a theme such as Love, Home For The Holidays or Remember When, Forbes reported.
With the change in theme, the store offers a new selection of inventory — and a reason for consumers to keep visiting the store. Beyond the items it sells, advertising generates revenue for the concept: Each theme is sponsored by a company such as American Express or Intel, and advertising on the walls of the store falls in line with the theme.
The news comes as Macy’s is testing out pop-up stores in 10 cities — from Las Vegas to New York — in a new concept named “The Market @ Macy’s,” CNBC reported. Through the program, brands can pay a one-time fee for a space on Macy’s first floor to advertise or sell their products while retaining all of their sales. Compared to traditional pop-up stores, Macy’s own staff services the brands. And the retailer is flexible on timing: Brands can stay for as short a time period as a month.
While the pop-ups benefit brands with flexibility and staffing, they also benefit Macy’s. Through the pop-up stores, Macy’s can gain insights into customer preferences. And, of course, the promise of new products could drive customers to visit its stores.
Macy’s is hardly the only company seeking to offer pop-up space to brands. Simon Malls — with over 300 shopping centers nationwide — launched scalable space for brands in December called The Edit. Through this new retail space, brands can test-drive physical commerce in front of a live customer audience. The goal of The Edit is to fix the old retail burdens that mall spaces often bear — inflexibility and expense — while delivering the mall’s benefits of customer foot traffic.