As department store giant Macy's expands its small-format store concept, following a successful trial run, it plans to open a new 30,000-square-foot store in San Diego County near the end of this year. According to NBC San Diego, this addition is part of Macy's strategy to enhance convenience and accessibility for their customers, and attract new shoppers.
The new store will be located at Santee Trolley Square and will offer a streamlined shopping experience. Macy's aims to capitalize on the growing trend of smaller retail spaces that cater to suburban shoppers, as cities have seen a decline in foot traffic due to the pandemic. This shift has prompted retailers such as Nordstrom, Kohl's, Bloomingdale's, and big-box stores like Target to pivot towards smaller-format stores. Macy's is following this trend to stay competitive and remain relevant among its customer base.
The first small-format Macy's store was launched in 2020 in the Dallas-Fort Worth area, with the latest addition in San Diego County helping the company reach a total count of 12 such stores. As reported by the San Diego Union-Tribune, the new stores range in size from 30,000 to 50,000 square feet. These stores offer a handpicked selection of popular and essential fashion, beauty, and fragrance products, and support online order pickup services. The smaller format stores in San Diego County will retain the iconic Macy's nameplate, while eight existing stores are operated under the label 'Market by Macy's'.
One key feature of these smaller stores is their non-traditional location – they are situated in strip malls anchored by discount stores, not their larger counterparts typically found in shopping malls. In fact, the single-story layout of Macy's mini-stores appears similar to the floor plan of Nordstrom Rack, the sister brand to the luxury department store Nordstrom. This strategic move seems to be paying off, as Macy's stated that the smaller-format stores operated for more than a full fiscal year had achieved positive comparable sales, while reporting success at their first location in Texas.
In early 2020, Macy's announced a three-year plan to close around 125 stores and lay off nearly 2,000 corporate employees. Since then, the retailer has closed approximately 80 Macy's locations and reportedly plans to close another five before the end of this year, according to NBC San Diego. Despite the ongoing store closures, the expansion of smaller-format stores indicates that Macy's is exploring innovative ways to adapt to the evolving retail landscape and continue providing value to its customers.
