Macy’s opened an off-mall concept called Market by Macy’s, at Southlake Town Square in Texas, this month. At 20,000 square feet, the format is smaller than a typical Macy’s and mixes Macy’s merchandise with local goods, local food-and-beverage and a robust community events calendar.
“We’re taking a community-centric approach, as the merchandise represents the needs of the community and the white space of the shopping environment surrounding Market by Macy's,” said Rachel Shechtman, Macy’s brand experience officer. “We have worked with more than 50 local partners on merchandise or event programming.”
The store also includes Getchell’s Apothecary — a 1,000-square-foot beauty shop that stocks roughly 80 beauty brands arranged by the need they serve — and a restaurant called Herald, which serves breakfast, lunch, snacks, beer, wine and cocktails.
Terry Montesi, founder and CEO of Fort Worth, Texas-based Trademark, was impressed with the vibe. “It was mobbed and people were buying,” he said. “It feels nothing like a department store. There is no question this concept is off to an encouraging start for them and is attracting new customers to check out their brand. It is good example of how the headwinds in bricks and mortar are making retailers up their game.” The second Market by Macy’s store will open this year at Trademark's WestBend mixed-use project in Fort Worth.
Macy’s plans to roll out still other Market by Macy’s units in off-mall locations as part of an overhaul that includes closing the company’s Cincinnati headquarters and focusing on its New York City headquarters. At the same time, the company will close approximately 125 of its least productive stores in “lower-tier malls” over the next three years, including approximately 30 stores that are already in the process of closing.
“We have an opportunity to build a broader yet integrated Macy’s experience within a metropolitan area by investing in our magnet stores, building freestanding Backstage locations and testing new, off-mall store formats,” said Jeff Gennette, chairman and CEO of Macy’s. Backstage is the retailer’s outlet concept that stocks unsold merchandise form traditional Macy’s stores. “This will enable us to grow with the next generation of American shoppers.”
Macy’s will also upgrade about 100 stores in 2020, improving their physical structures and investing in merchandising, technology improvements, talent and local marketing. Moreover, the company says it aims to open an additional 50 Backstage store-within-store units and seven more freestanding, off-mall Backstage stores this year.
By Brannon Boswell
Executive Editor, Commerce + Communities Today
