An important milestone in the company’s small-format strategy to deliver long-term sales growth

Macy's, Inc. (NYSE: M) today announced an accelerated expansion of its small-format store strategy, potentially tripling the total number of its small-format stores through fall 2025. Beginning in 2024, up to 30 new Macy’s small-format locations will open across the country. This expansion is in addition to the nearly 15 small-format Macy’s and Bloomie’s locations that Macy’s, Inc. currently operates. Paired with a premier digital experience, these small-format stores enhance the company’s store portfolio with a mix of the best on- and off-mall locations, to deliver a seamless shopping experience across channels.

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Macy’s Unveils Plan to Open up to 30 Small-Format Stores (Photo: Business Wire)

“We are excited to accelerate the expansion of our small-format strategy as we continue to innovate and reposition our store portfolio to better serve our customers,” said Adrian Mitchell, chief operating officer and chief financial officer for Macy’s, Inc. “Our small-format stores are efficient to operate, provide the customer with a shopping alternative within our omnichannel ecosystem and present a unique opportunity to target high-traffic shopping centers. Our small-format strategy is one way we intend to harness the full power of the Macy’s brand to deliver sustainable, profitable sales growth for Macy’s, Inc. beginning in 2024.”

Bloomie’s, the smaller store concept by Bloomingdale's, which provides a casual, contemporary and highly curated experience for shoppers, recently announced its inaugural West Coast location in Seattle, Wash. set to open in November. This will be the third Bloomie's location to open, adding to existing stores located in Fairfax, Va. and the Chicagoland area. Bloomingdale’s intends to further expand its small-format store footprint in the future.

Repositioning Store Portfolio to Meet Customer Demand

As one of Macy’s, Inc.’s five growth vectors, small-format stores play a pivotal role in the company’s omnichannel strategy to expand in existing markets, enter new markets and maintain a presence in existing markets by replacing stores that may not be as productive. Macy’s small-format stores are strategically located in off-mall shopping centers to bring the brand closer to existing and desired customers while also encouraging more frequent visits. Year-to date through spring 2023, Macy’s small-format stores open for more than one fiscal year have achieved positive comparable owned plus licensed sales growth.

“Over the past three years, we've gained valuable insight and have been methodical in our approach to our small-format stores,” said Marc Mastronardi, chief stores officer for Macy's, Inc. “We have taken the time to test and iterate a distinct shopping experience that focuses on convenience, curated merchandise, local events and services that have allowed us to cultivate a highly engaged customer base.”

Convenient Shopping at Macy's Small-Format Stores

Macy's small-format stores offer a convenient and distinct shopping experience in an open environment that is roughly 1/5 the size of the full-line stores. Through a highly curated and localized selection of Macy’s assortment, customers can shop a compelling mix of both Macy’s private brands and sought-after market brands. Customer feedback continues to remain high in areas such as the physical store environment, ease of checkout and the helpfulness and availability of colleagues. Macy's targets locations in high-traffic centers where Macy’s unique products and brands provide a differentiated shopping option.

Macy’s, Inc. Small-Format Growth:

Beginning in 2023, new Macy’s small-format stores will operate under the iconic 'Macy's' nameplate. For a list of store locations and hours, visit macys.com/macys and bloomingdales.com/c/bloomies. Media assets can be found here.

About Macy’s, Inc.

At Macy’s, Inc. (NYSE: M), we are a trusted source for quality brands at great values from off-price to luxury. Across our iconic nameplates, including Macy’s, Bloomingdale’s and Bluemercury, we help our customers express their unique style and celebrate special moments, big and small. Headquartered in New York City, we operate one of retail’s largest e-commerce businesses integrated with a nationwide footprint to deliver the most convenient and seamless shopping experience. Our purpose is to create a brighter future with bold representation – so we can realize the full potential of every one of us. For more information, visit macysinc.com.

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