Macy’s continues to open more small format stores, moving away from giant department stores. Following its expansion strategy, the retailer has opened 10 smaller-format stores in malls since the beginning of the year and plans to open five more by the end of 2023.
The stores, called Market by Macy’s and Bloomie’s, are about five times smaller than the classic Macy’s and Bloomingdale’s department stores. It is known that one of the new Market by Macy’s stores will be located in Seattle.
The company is trying to win back the trust of investors who are tired of big classic Macy’s department stores, finding them boring. As part of its new growth strategy, the retailer is opening in bustling malls and fast-growing suburbs, offering a limited selection of the most popular items.
“We hope to have a model to scale more aggressively in 2024 and beyond. We’re very confident in the concept. We’re very positive about the early results. The size, the location – everything works,” commented Macy’s CEO Jeff Gennett.
Comparable store sales at Market by Macy’s and Bloomie’s were up 8% and 12% for the year. By comparison, sales at Macy’s fell 3.3% over the past year, and Bloomingdale’s actually stayed flat. Most of the retailer’s 700 operating stores are still concentrated in classic malls. Since the beginning of the year, the company’s stock has fallen more than a quarter in value.
