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Macy’s Speeds Move to Small-Format Stores

Such locales its growth engine going forward, retailer says.

Published

2 weeks ago

October 5, 2023

INSTORE Staff

PHOTOGRAPHY: Ian Dewar Photography / Shutterstock.com

Macy’s Inc. (New York) has unveiled an accelerated expansion of its small-format store strategy, potentially tripling the total number of such outlets through fall 2025. Beginning in 2024, up to 30 new Macy’s small-format locations will open across the country.

“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.”

The latest expansion plan is in addition to the nearly 15 small-format Macy’s and Bloomie’s locations that Macy’s Inc. currently operates. (Bloomie’s, the smaller-store concept by Macy’s Bloomingdale’s unit, recently announced its inaugural West Coast location in Seattle, set to open in November. That will be the third Bloomie’s location, adding to those in Fairfax, Va., and the Chicago area.)

Small-format stores are playing 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, the retailer says. Macy’s small-format stores are located in off-mall shopping centers to bring the brand closer to existing and desired customers while 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.

“Every One of Them Said, ‘Go with Wilkerson.’”

There are times when decisions must be made. For Joe Cheslock, owner of Sycamore Jewelers in Midlothian, VA for the past 25 years, the time had come. He had to decide whether to renew a five-year lease. Instead, he called Wilkerson to handle his store’s going-out-of-business sale. Why did he select Wilkerson? “I talked to retailers from around the country to get their advice. Every one of them said, ‘Go with Wilkerson.’” And he’s glad he did. Cheslock says he was amazed by Wilkerson’s organization and attention to detail. Of course, as a store owner, it was hard to let others do the heavy lifting, but he’s glad he did. “Wilkerson did everything they said they would and more. They follow through and they’re respected in the industry. I now see why.”