Macy’s has announced plans to open up to 30 smaller stores in strip malls across the US over the next two years. The move comes as the department store operator looks to attract customers away from declining shopping malls and into bustling suburbs. The smaller-format stores are approximately one-fifth the size of Macy’s traditional locations, offering a slimmed-down mix of merchandise and a more modern and open feel. The off-mall stores have performed better than the rest of Macy’s, with higher customer satisfaction and comparable sales growth.
Macy’s decision to open smaller stores marks a significant shift for the company, which has struggled with declining mall traffic in recent years. The move is part of the retailer’s strategy to refresh its legacy brand, compete with rival retailers, and serve customers in more convenient locations. The small-format stores have proven successful in attracting customers, with higher customer ratings for convenience, helpfulness of staff, and ease of shopping. The stores have also achieved comparable sales growth, outperforming the rest of the company.
By opening smaller stores in strip malls, Macy’s hopes to tap into the bustling traffic of these areas. The new stores will be situated next to popular off-price retailers, grocery stores, and big-box stores, enhancing the convenience for customers. Macy’s has observed that the new stores attract a similar customer base to its traditional locations, but offer a more curated and modern shopping experience. Popular product categories at the smaller stores have included beauty products, toys, and career apparel. The expansion into off-mall locations is part of Macy’s broader growth strategy, which includes initiatives such as new private brands, a third-party marketplace online, and increased personalized offers for customers.
