San Diego’s Trolley Square will see Macy’s open its version of the local boutique with its smaller footprint concept.
The smaller store format originally bowed in 2020 as Market by Macy’s. San Diego and the three other locations announced Tuesday will operate under the Macy’s banner.
The stores range from 30,000 to 50,000 square feet and are focused outside the typical mall environment most Macy’s operate in.
The assortment plays up private label and leading third-party brands, while also touting pop-ups done in collaboration with local businesses.
Macy’s aims to elevate the shopping experience of its smaller stores with larger fitting rooms, lounges and a “Trend Pavilion” focused on newer styles.
“As a growth vector for Macy’s Inc., small-format stores offer a curated shopping experience celebrating discovery and convenience,” Macy’s Chief Stores Officer Marc Mastronardi said in a statement. “These stores optimize our physical store footprint and bring us closer to existing and desired customers, while encouraging more frequent visits.”
Other markets set to see the smaller stores include Highland Grove in Indiana, South Bay in Massachusetts and Arroyo Market Square in Nevada.
Highland Grove opens in August, with Massachusetts and Nevada bowing in September. San Diego is slated for a November opening.
The four locations join the eight existing Market by Macy’s stores in Dallas-Fort Worth, Atlanta, St. Louis and Chicago.
Near-Term Uncertainty
The retailer under Chairman and CEO Jeff Gennette has steadily beat the drum of serving as a “modern department store.”
However, near-term headwinds have been pushed to the forefront as retailers work through inventory excess and a promotional environment that’s reached fever pitch.
“We continue to see uncertainty in the macroeconomic environment,” Gennette said Tuesday upon the release of Macy’s Inc.’s fiscal second-quarter results.
The CEO said the company’s use of data will help it make decisions on the right inventory to woo consumers into doors.
“Looking ahead, we are committed to fortifying our core business and improving our customer experience while investing in our five growth vectors,” Gennette said.
Macy’s reported net sales of $5 billion in the second quarter, which was off 8 percent from a year ago. Both brick-and-mortar and digital saw declines.
The company’s adjusted net income narrowed to $71 million in the quarter from $277 million a year ago.
Same-store sales, of company-owned and licensed stores, fell 7.3 percent in the quarter. That was driven by declines at both Macy’s and Bloomingdale’s.
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