Retail

Macy’s To Open New Store Format With Beauty Focus

Macy's To Open New Store With Beauty Focus

Macy’s is planning to test a new kind of store with a focus on apothecary and beauty products, which could lead to more locations in the future, according to reports.

The store will be rolled out in Southlake, Texas. Aside from the beauty items, it will also contain a cafe area, according to people familiar with the plans.

Women’s Wear Daily reports that the store is being headed up by Story Founder Rachel Shechtman. Story was acquired by Macy’s in 2018, and its themed marketplaces have popped up in numerous Macy’s locations since then. Macy’s also bought the beauty chain Bluemercury in 2015 for $210 million.

Beauty is considered to be one of today’s fastest-growing retail operations, even more so than its apparel business. Brands such as Ulta Beauty and Sephora are continuing to open new stores, which could be motivating Macy’s to compete in that area.

CNBC reports that while Macy’s declined to comment on the story, there has been a wealth of new job openings in the Southlake area, including some with descriptions for cafe employees, beauty brand experts and sales associates, with a tag stating that it’s for a “new retail concept at Macy’s.”

Macy’s has been struggling recently with sales at its traditional stores, and is lagging behind as brands begin to sell directly to customers who are skipping mall trips. The company said it is looking to cut down on its real estate, and has plans to shutter 28 locations.

Last quarter saw the retailer’s first same-store decline in two years. They were down 0.6 percent in holiday sales, indicative of the general negative trend among holiday sales at mall stores. Their shares were down less than 1 percent Friday morning (Jan. 31), and their stock has fallen around 34 percent over the last year. Their market cap is about 5.2 billion.

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