October 6, 2022

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Macy's is accelerating its plans to open smaller stores outside malls

Macy’s is accelerating its plans to open smaller stores outside malls

In 2020, Macy’s opened its first market through the Macy’s location, which was in the Dallas-Fort Worth area.

Source: Macy’s

Messi It is accelerating its plans to open smaller stores unconnected to suburban malls, in a bid to evolve along with the shopping preferences of its outgoing customers. covid pandemic.

The supermarket chain said Wednesday that it will open three stores this fall, each representing ways Macy’s is thinking about how it aims to reposition its properties in the future. It includes:

  • She combines some of her different works under one roof
  • closing one of its supermarkets in a traditional mall to open up a smaller Macy’s store, known as The Market by Macy’s, in a more populated part of the neighboring city
  • Add another market through Macy’s in an area that already has many of these stores

“We want to fit in and we want to make it easy,” Mark Mastronardi, Macy’s chief store officer, said in an interview. “Customer behavior is constantly changing. And as we have the agility as an organization to transform and interact, this looks like the next natural evolution.”

This fits with Macy’s broader strategy Offered to investors in February 2020, shortly before the onset of cases of Covid-19 in the United States. At the time, the company said it planned to close 125 stores in lower-level malls within three years and would explore shapes outside of malls.

Since then, Macy’s has opened five Market by Macy stores, which are about a fifth the size of their full websites and services such as online purchase and in-store pickup. He will reach eight by the end of this year.

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Going small and moving away from the mall has become somewhat of a trend in the retail industry. It is a scheme of retailers the difference to me Nordstrom They were following. kohl She also said she aims to open 100 smaller sites over the next four years. Macy’s last year opened its first pint-sized store in Bloomingdale’s, called Blooms.

Some of America’s malls have lost their appeal – and their tenants – as consumers nowadays tend to look for a quick and convenient shopping experience. And shoppers are less interested in spending hours browsing the sprawling, multi-level stores, which leads to retailers testing smaller versions.

“There are malls that are underperforming and this is an opportunity to enter the market in the right place and in a new format,” said Mastronardi.

This fall, Macy’s will open its first-ever dual market of Macy’s Store and Macy’s Backstage, a competitor to inexpensive retail chains including TJ Maxin the Chicago metropolitan area.

Second, it plans to close one of its flagship stores in the Chesterfield area of ​​St. Louis in order to open a smaller market near the nearby Macy’s, in an open-air mall known as Chesterfield Commons.

And third, Macy’s will open a Macy’s store market in Johns Creek Town Center, in Suwanee, Georgia, marking its third location in the metro Atlanta area.

Mastronardi said the Atlanta market has proven to be a place where people show an affinity for the Macy brand, and it’s also a highly traded area, giving Macy’s a reason to have a strong presence.

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He also said that Macy’s customers spend three times more online, on average, in markets where the retailer also owns brick-and-mortar stores.

“When we are near a customer in a physical format, our digital work is significantly better,” he said.

Macy’s counted 511 of its namesake locations, 55 Bloomingdale stores and 160 Bluemercury makeup stores, as of April 30.