Macy’s, Inc. reported plans to open up to 30 new small-format stores starting in 2024 and running through fall 2025; this is in addition to the 15 small-format Macy’s and Bloomie’s stores the retailer will operate by the end of 2023.
“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.”
Bloomie’s, the smaller store concept by Bloomingdale’s, recently announced it would open its first West Coast store in Seattle, WA. in November; this will be the third Bloomie’s store to open, adding to stores located in Fairfax, VA. and the Chicagoland area. Bloomingdale’s reported it intends to expand its small-format store footprint.
Macy’s will have 12 small-format stores open at the close of 2023. Those stores that are open include Southlake (Dallas-Fort Worth), Westbend (Dallas-Fort Worth), South Point (Atlanta), Presidential Markets (Atlanta), Highlands of Flower Mound (Dallas-Fort Worth), John’s Creek Town Center (Atlanta), Evergreen Plaza (Chicago), Chesterfield Commons (St. Louis), and Highland Grove (Chicago), South Bay (Boston), and Arroyo Market Square (Las Vegas). A location in Santee Trolley Square (San Diego) is opening in November.
Beginning in 2023, new Macy’s small-format stores will operate under the ‘Macy’s’ nameplate rather than the “Market by Macy’s” of the initial stores.
As one of Macy’s, Inc.’s five growth pillars, small-format stores play a pivotal role in its 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 said its 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.”
Macy’s small-format stores, at roughly one-fifth the size of the full-line stores, sell a curated and localized selection of Macy’s assortment in an open environment. The retailer reported that customer feedback remains high in areas including the “physical store environment, ease of checkout and the helpfulness and availability of colleagues.”
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.”
Photo courtesy Macy’s