Macy’s
is aiming to nearly triple its number of small-format stores by fall 2025, the company said Tuesday.
Macy’s (ticker: M) plans to open up to 30 smaller stores starting in 2024, the company said, building on the nearly 15 small-format Macy’s (ticker: M) and Bloomie’s locations the company currently operates.
“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,” said Adrian Mitchell, chief operating officer and chief financial officer. “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.”
The company opened its first small-format locations in the Dallas-Fort Worth area in 2020. It has since rolled them out to areas including Atlanta, Chicago, St. Louis, Boston, and Las Vegas.
The stores are located in off-mall shopping centers, such as strip malls, targeting high-traffic areas. The small-format locations are roughly one-fifth the size of Macy’s full-line stores, and contain a curated selection of the department store’s assortment, the company said.
Year to date through spring 2023, Macy’s small-format locations open for more than one fiscal year have seen positive sale growth on a comparable owned-plus- licensed basis, the company said.
Macy’s is in the midst of a broader effort to revamp its business as sales slump. Over the past year, the company has unveiled new CEOs for both Macy’s and Bloomingdale’s, revitalized its private label brands, and announced new partnerships with legacy retailers, such as Gap (GPS).
Investors appear not to be responding positively to the company’s initiatives, however. The stock is down 44% this year, underperforming the
S&P 500
‘s 11% gain. Shares were 0.5% lower early on Tuesday.
Write to Sabrina Escobar at [email protected]
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