Macy's to open its first-ever smaller footprint discount store
Macy's is shrinking in size and spread.
Why it matters: Department store appeal continues to dissipate as shopping habits change rapidly.
- Most recently, those changes have come about through the proliferation of live-streaming and social shopping.
Driving the news: Macy's today announced "an acceleration" of its strategy to open smaller size stores, move out of malls and grow its discount business.
Details: The chain will open its first-ever, small-footprint discount store later this year near Chicago.
- It's a combination "Market by Macy's" and "Macy's Backstage."
- Market by Macy's shops are about one-fifth the size of regular locations.
- Macy's Backstage is the company's T.J. Maxx competitor.
The big picture: Macy's has been opening smaller Market by Macy's stores in open-air shopping centers even as it plans to close about 60 more department stores by next year.
- The Market by Macy's locations (currently five, with three more to come by year end) often have more frequently updated products and less inventory to manage.
What to watch: Shopping centers are helping revive physical retail, according to the WSJ.