Daily Newsletter

04 October 2023

Daily Newsletter

04 October 2023

Macy’s accelerates small-format store expansion strategy in US

The company has plans to open up to 30 new stores in the country next year.

Jangoulun Singsit October 04 2023

Department store chain Macy's has revealed plans to expedite the expansion strategy for its small-format stores in the US.

Starting next year, the retailer will open up to 30 new small-format locations across the country through autumn 2025. It aims to triple the small-format network by 2025.

Macy's said it will disclose the geographic locations and opening times in the subsequent announcement.

Macy's small-format stores are roughly one fifth the size of the full-line stores and offer a highly curated and localised selection of Macy’s assortment.

They are also paired with premier digital technology to deliver a seamless shopping experience across channels.

The small-format stores are strategically located in off-mall shopping centres to bring existing and desired customers closer.

The new Macy’s small-format stores will operate under the brand’s nameplate starting this year.

Macy’s chief operating officer and chief financial officer Adrian Mitchell said: “We are excited to accelerate the expansion of our small-format strategy as we continue to innovate and reposition our store portfolio to better serve our customers.

“Our small-format stores are efficient to operate, provide the customer with a shopping alternative within our omnichannel ecosystem and present a unique opportunity to target high-traffic shopping centres. Our small-format strategy is one way we intend to harness the full power of the Macy’s brand to deliver sustainable, profitable sales growth for Macy’s, beginning in 2024.”

The announcement for new small-format stores comes in addition to the nearly 15 small-format Macy’s and Bloomie’s locations that Macy’s currently operates.

Bloomie’s, a smaller store concept by Bloomingdale's, operates two stores in Fairfax, Virginia and the Chicagoland area.

Bloomingdale’s recently said that it will open its inaugural West Coast location in Seattle, Washington, next month. It plans to expand its small-format store footprint in the future.

Luxury goods, digitalization, and personalization identified as key drivers of the duty-free retail market

Per GlobalData, the global duty-free market retailing market was valued at $49 billion in 2022, its highest level ever as it bounced back from the pandemic impact, and is expected to grow at a CAGR of more than 28% during the period 2020-2026, driven by government initiatives, rising passenger numbers, major global events (for instance global sporting tournaments) and the renewed popularity of cruise trips. Infrastructure investments will also play an important role, particularly airport expansion and space refurbishment, and investments in arrivals duty-free formats.

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