Macy’s Expands Smaller-Format Store Strategy With 4 New Locations

Macy’s is expanding its smaller-format stores with the opening of four new locations this fall.

According to the department store chain, these openings mark the first expansion of its units in the Northeast and Western regions of the United States, with openings slated in Boston, Las Vegas and San Diego. Specifically, the retailer will open these stores at South Bay Center in Boston, Mass. and Arroyo Market Square in Las Vegas, Nev. in September along with another location at Santee Trolley Square in San Diego, Calif. in November.

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This expansion follows the opening of its third small-format location in the Midwest region with the recent August opening at Highland Grove Shopping Center in Highland, Ind.

These stores are in addition to the company’s other 10 smaller-format stores consisting of 8 Macy’s and 2 Bloomie’s locations. A third Bloomie’s location is slated to open in Seattle in November.

Macy’s, store, Highland Grove, small store
Inside Macy’s new small-format location at Highland Grove on Saturday, Aug. 19, 2023.AP Images for Macy’s, Inc.

Macy’s said on Tuesday that these new smaller-format store locations will bear the iconic Macy’s nameplate, whereas the previous eight locations will continue to go by the Market by Macy’s moniker. No additional information on why the name change was made was available at the time of press.

In 2020, Macy’s introduced the first iteration of its small-format stores in the Dallas-Fort Worth area in Southlake. The following year, the company continued its expansion in the Dallas-Fort Worth area with the addition of two new locations, while also introducing two new stores to the Atlanta market. By the end of 2022, small-format stores expanded further in Atlanta and opened new stores in St. Louis and Chicago, bringing the total to eight locations.

These smaller locations are typically 30,000 to 50,000 square feet of space, roughly one-fifth of the company’s typical department stores, and are located in off-mall shopping centers.

Macy’s, store, Highland Grove, small store
Inside Macy’s new small-format location at Highland Grove on Saturday, Aug. 19, 2023.AP Images for Macy’s, Inc.

“We’re thrilled by the success of our small-format stores and ongoing geographic expansion with our inaugural move into the Northeast and Western region,” Marc Mastronardi, chief stores officer at Macy’s Inc., said in a statement. “As a growth vector for Macy’s, Inc., small-format stores offer a curated shopping experience celebrating discovery and convenience. These stores optimize our physical store footprint and bring us closer to existing and desired customers while encouraging more frequent visits.”

This news comes the same day Macy’s reported an 8 percent decline in net sales to $5.13 billion in the second quarter, down from $5.6 billion in the same period last year. The company also reported a net loss in Q2 of $22 million.

“Looking ahead, we are committed to fortifying our core business and improving our customer experience while investing in our five growth vectors,” Jeff Gennette, the outgoing chairman and CEO of Macy’s Inc., said in a statement Tuesday. “We believe these advancements, enabled by our strong talent, will drive our relevancy and long-term success as a modern department store.”

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