Macy’s has announced plans to expand its compact retail concepts including a third Bloomie’s, the Bloomingdale’s small-format store, opening in Seattle, WA on November 2.
Macy’s declared an acceleration of its small-format store rollout strategy that could include tripling the total number of its small-format stores through fall 2025. Beginning in 2024, up to 30 new Macy’s small-format locations will debut across the United States. The small-format stores, Macy’s asserted, enhance the company’s retail portfolio with a mix of the on- and off-mall locations. Paired with the company’s digital operations, they can deliver a seamless shopping experience across channels, the company added.
The new Bloomie’s store concept provides a curated shopping experience and has already debuted in Fairfax, VA and Skokie, IL. The Seattle store will operate in University Village, where it will share a retail complex with Macy’s sibling brand Bluemercury as well as Crate & Barrel, Pottery Barn, Pottery Barn Kids and Williams-Sonoma locations, among others.
As part of its proposition to the consumer, Bloomie’s stores include space for rotating pop-ups and trend presentations specific to each location in addition to its everyday lineup. Shoppers who attend opening day festivities for the 19,000 square-foot, two-floor Seattle Bloomie’s store will be able to select sweets from local favorite bakery Jenny Cookies and receive a Retail Therapy Candle set as a gift with any purchase following the ribbon cutting.
“The expansion to University Village represents the introduction of our Bloomie’s store concept to the West Coast, and we are thrilled to be present in the Seattle market,” said Charles Anderson, Bloomingdale’s director of stores, in announcing the store opening. “Although this is our first physical storefront in the area, Bloomingdale’s already has an engaged customer base in the Seattle market. We look forward to welcoming those loyal shoppers, and new guests within the community, to our new location.”
Macy’s operates a dozen small stores under its own banner in Dallas-Fort Worth, Atlanta, Chicago, St. Louis and Boston with a new location opening in San Diego in November. Plans call for opening additional small-format stores during 2024 and 2025.
Macy’s characterizes small stores as one of its five growth vectors and critical to the company’s omnichannel strategy, which includes expansion in existing markets, entering new markets and maintaining a presence in existing markets by replacing stores that may no longer be productive. The small-format stores offer a convenient and distinct shopping experience in an open environment roughly 1/5 the size of the full-line stores, the company noted.
Macy’s locates its small-format stores in off-mall shopping centers, the company pointed out, to bring the brand closer to existing and targeted customers while also encouraging more frequent visits. Year-to-date through spring 2023, those small-format stores open for more than one fiscal year have achieved positive comparable owned plus licensed sales growth.
“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,” said Adrian Mitchell, Macy’s, COO and CFO. “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 centers. 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, Inc. beginning in 2024.”
Marc Mastronardi, Macy’s chief stores officer, added, “Over the past three years, we’ve gained valuable insight and have been methodical in our approach to our small-format stores. We have taken the time to test and iterate a distinct shopping experience that focuses on convenience, curated merchandise, local events and services that have allowed us to cultivate a highly engaged customer base.”
