Macy’s (NYSE: M) is accelerating plans to open smaller off-mall stores as it strives to evolve with its consumers’ shopping habits, following the Covid-19 pandemic. The company’s revamped model will be represented by the Market by Macy’s concept as well as the very first dual Market by Macy’s and Macy’s Backstage off-price location.
“At Macy’s, we thrive on retail being a dynamic business requiring continuous analysis, reinvention, and innovation. As customer preferences and buying behaviors change, we continue to evolve to deliver the experience our customers expect,” Marc Mastronardi, chief stores officer at Macy’s, said. “As exciting brand extensions, Market by Macy’s and Macy’s Backstage each offer unique shopping experiences—one celebrates discovery and convenience, while the other appeals to the customer who loves the thrill of the hunt for a great value.”
The company said Wednesday that it will be opening three stores this fall, which all stand for the ways it hopes to reposition its real estate in the future. The move is part of a larger strategy that Macy’s has presented to investors in February 2020, just before the rise in Covid-19 cases within the United States. The retailer had planned to shut down 125 stores in lower-tier malls within the next three years to explore locations outside of malls.
“Off-mall, small formats play several roles in the company’s Polaris strategy by either expanding its presence in a current market, maintaining market presence by replacing underperforming locations, or entering new markets where Macy’s doesn’t have a presence,” Macy’s said.