The Strategist

Macy's to open small stores amid decline in malls

10/04/2023 - 09:21

Macy's Inc. aims to establish up to 30 small stores within the next two years as the majority of the chain's shops are located in big shopping malls with falling number of visitors.

The initial small-format outlets, which are around one-fifth the size of a regular Macy's shop, started to appear in high-traffic areas nearly four years ago, and they have since had the best financial outcomes of any of the retailer's sites.

The firm wants to address the drop in total comparable sales brought on by the underwhelming performance of full-size sites, the desire of Macy's key customers to save expenses, as well as a decline in the appeal of shopping complexes.

Smaller stores that are already open do not compete with larger outlets of the chain, even if they are close by. According to the retailer, the launch of new businesses does not cause a drop in sales at existing stores.