Advertisement
04/24/2017

Macy’s expands off-price concept

Image

Macy’s is getting more serious about its off-price format, Macy’s Backstage.



The department store giant plans to add 30 Backstage shops to existing Macy’s stores this year, reported CNBC. The format debuted in 2015, originally as a freestanding store.



But starting in 2016, Macy’s has been expanding the concept by opening dedicated in-store Backstage shops in its full-line department stores, which are typically located in a traditional mall. The merchandise mix includes clothing home decor, shoes, sunglasses, baby gear, and bedding. Locating Backstage in a full-line Macy’s store gives the retailer a point of differentiation over such off-price competitors as TJ Maxx and Ross Stores.



"We hope that by the end of 2017, what we're going to exit with is a viable off-price concept that is on-mall, not off-mall like our ferocious competitors," Macy’s CEO Jeff Gennette told CNBC. (Gennette took the reins from longtime CEO Terry Lundgren in March.)