Shoppers browse racks of clothing with a glass of wine in hand. A display of pet accessories and a water bowl greet four-legged visitors. Couples push strollers through a store on a neighborhood walk.
It’s not a local boutique. It’s Bloomie’s, a new store from Macy’s (NYSE:M)
The department-store operator is thinking smaller and outside of the mall with its latest stores as it shutters more of its giant mall anchors. Macy’s has opened 10 locations in strip centers — mini-versions of its namesake stores and Bloomingdale’s — and plans to add five more this fiscal year. The shops, called Market by Macy’s and Bloomie’s, are about one-fifth of the size of the retailer’s typical Macy’s and Bloomingdale’s stores.
It has not announced the locations of the four Market by Macy’s stores, but said the additional Bloomie’s store will be in Seattle.
Macy’s off-mall expansion is part of its answer to investors who think of department stores as dusty and dull. The company is chasing customers in bustling shopping centers and fast-growing suburbs as it exits dying malls. Inside these new and smaller stores, it’s offering a slimmed-down assortment of popular brands with displays that rotate frequently to stay fresh and on-trend.
This year will offer a pivotal test for the strategy, CEO Jeff Gennette told reporters. The retailer will wrap up the test-and-learn phase of the stores and decide on expansion plans by year-end, he said.
M shares tumbled 69 cents, or 4.5%, to $14.60.
