PYMNTS MonitorEdge May 2024

Macy’s to Triple Number of Small-Format Stores by 2025

Macy’s store

Macy’s plans to open as many as 30 additional small-format stores across the United States, as part of an accelerated expansion strategy.

This move could triple the total number of small-format stores operated by Macy’s by fall 2025, with the new locations joining the nearly 15 small-format Macy’s and Bloomie’s stores already in operation, the retailer said in a Tuesday (Oct. 3) press release. The company intends to begin opening these new locations in 2024.

The small-format stores are designed to complement Macy’s digital experience and improve the overall store portfolio, offering customers a shopping experience across various channels, according to the release. The stores will be strategically located in both on- and off-mall locations, allowing the brand to reach existing and potential customers more effectively and encouraging frequent visits.

Adrian Mitchell, chief operating officer and chief financial officer at Macy’s, said in the release that these small-format stores are efficient to operate and provide customers with an alternative shopping experience within the company’s omnichannel ecosystem. Mitchell expects the small-format stores to leverage the power of the Macy’s brand and drive sales growth starting in 2024.

Macy’s small-format stores offer a unique and convenient shopping experience in an open environment that is approximately one-fifth the size of full-line stores, the release said. These stores feature a curated selection of Macy’s assortment, including both Macy’s private brands and popular market brands. Customers have responded positively to the physical store environment, ease of checkout, and availability of colleagues, the retailer said.

These stores play a crucial role in the company’s omnichannel approach, allowing Macy’s to expand in existing markets, enter new markets and replace less productive stores in order to maintain a presence, per the release. Notably, Macy’s small-format stores that have been open for at least a year have already achieved positive comparable owned plus licensed sales growth this year.

Macy’s is spearheading major stores’ embrace of smaller footprints as they seek to cut costs and renew customer focus, PYMNTS reported in May. Merchants are overhauling their brick-and-mortar approach, branching out from the traditional mall format in favor of a smaller strip mall format due to investors’ concerns that department stores are becoming obsolete.

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