Macy's Propels Small-Format Store Expansion Plans
Macy’s is accelerating the expansion of its small-format store strategy, with the goal of tripling the total number of smaller footprint stores through fall of 2025.
Starting 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.
“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.”
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Bloomie’s, the smaller store concept by Bloomingdale's, 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.
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.”
Macy's small-format stores offer a highly curated and localized selection of Macy’s assortment, allowing customers to shop a mix of Macy’s private brands and sought-after market brands. The department store is targeting locations in high-traffic centers.