Macy's is expanding, to a strip mall?
is the decision to go from a flagship mall store to an outlet mall a move that will pay off?
Macys recently created Macy's Backstage, a stand alone store that features new products from fashion brands to kitchen appliances at a clearance price you just cant beat. The concept allows consumers to go in everyday and always see new products guaranteed that they would not have seen the previous day.
This gives the concept functionality that invites the consumer to consistently visit the store more often because there is now that intrigue that there will always be something new and exciting to explore at the store.
The prices are also very competitive as well, with iconic name brands such as Calvin Klein, Ralph Lauren, and many more that are notably expensive now at a fraction of a cost offered on a first come first serve basis, it provides scarcity and value to the consumer.
But can it keep up with the demand? When stores like this are only offered so many products in stock versus online shopping can also have clearance sales or events that can give you affordable pricing.
However, Macy's Backstage does seem effective as it has generated a 40% increase in revenue for the company and it seems like such a solution to the brand that Macy's plans on expanding its market from standalone department stores to outlet malls that allow quick picks for general consumers.
This could prove worthwhile for the company as they also plan on basing these stores only in locations that only seems viable. They are working with a team of geolocation experts in the industry that know it will probably be a better solution for states where most consumers are in their adult to elder years rather than millennials that do almost all of their shopping online.
The question we really need to be asking is, is experimentation with the brick and mortar industry worthwhile at this point? For a brand of such a caliber as Macy's, with such a rich and long history, can they stay afloat in this market regardless of how they try to change their message?
Black Mountain will keep you up to date as the major retailer's future unfolds.