Macy’s, Stung By Off-Price Competition, Brings Off-Price In-House
Jeff Gennette, Macy’s president, is big on store-within-a-store concepts. That’s been one of the storylines on Mr. Gennette since it was announced he would replace the company’s longtime CEO, Terry Lundgren, in the first quarter of next year. Now comes word that Macy’s is setting up shops promoting its off-price Backstage concept in 45 of the chain’s full-price stores in time for Christmas. On an earnings call with analysts last week, CFO Karen Hoguet said stores adding the Backstage shops have seen improvements in productivity. Dedicated Backstage staff are in charge of merchandising the shops and buying is also done by a group separate from Macy’s. Brands sold in the shops are, in many cases, completely different than those found in the rest of the store. Read more at Forbes.
