MACY’S UNVEILS PLAN TO OPEN UP TO 30 SMALL-FORMAT STORES
Macy’s, Inc., has announced an accelerated expansion of its small-format store strategy, potentially tripling the total number of its small-format stores through fall 2025. Beginning in 2024, up to 30 new Macy’s small-format locations will open across the country. This expansion is in addition to the nearly 15 small-format Macy’s and Bloomie’s locations that Macy’s, Inc. currently operates. Paired with a premier digital experience, these small-format stores enhance the company’s store portfolio with a mix of the best on- and off-mall locations, to deliver a seamless shopping experience across channels.
“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, which provides a casual, contemporary and highly curated experience for shoppers, recently announced its inaugural West Coast location in Seattle, Wash. set to open in November. This will be the third Bloomie’s location to open, adding to existing stores located in Fairfax, Va. and the Chicagoland area. Bloomingdale’s intends to further expand its small-format store footprint in the future.
Repositioning Store Portfolio to Meet Customer Demand
As one of Macy’s, Inc.’s five growth vectors, small-format stores play a pivotal role in the company’s 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 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. 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.”
Convenient Shopping at Macy’s Small-Format Stores
Macy’s small-format stores offer a convenient and distinct shopping experience in an open environment that is roughly 1/5 the size of the full-line stores. Through a highly curated and localized selection of Macy’s assortment, customers can shop a compelling mix of both Macy’s private brands and sought-after market brands. Customer feedback continues to remain high in areas such as the physical store environment, ease of checkout and the helpfulness and availability of colleagues. Macy’s targets locations in high-traffic centers where Macy’s unique products and brands provide a differentiated shopping option.
Macy’s, Inc. Small-Format Growth:
| Fiscal Year | Macy’s Small-Format Locations |
| 2020 |
|
| 2021 |
|
| 2022 |
|
| 2023 |
|
| Bringing the total number of Macy’s small-format stores to 12 by the end of 2023. | |
| 2024-2025 | Opening up to 30 additional locations through fall 2025 with geographic locations and timing details to be disclosed in subsequent announcements. |
| Fiscal Year | Bloomie’s Small-Format Locations |
| 2020 | |
| 2021 |
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| 2022 |
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| 2023 |
|
| Bringing the total number of Bloomie’s to three by the end of 2023. | |
| 2024-2025 | To be announced. |
