The new outlets will open in a format 20% smaller than classic stores.
Macy's announced plans to open 30 more stores as it considers its long-term growth strategy in physical retailing. The new locations will open in a format 20% smaller than classic stores. The move could be crucial for Macy's given the gradual decline in mall traffic.
Plans to launch 30 new stores span the next two years. The company said it is trying to lure shoppers from stagnant malls to bustling suburbs.
The first openings under the new development strategy will occur in the first quarter 2024. The expansion marks a watershed moment for the department store operator.
Since the second quarter of 2023, Macy's has been under pressure amid middle-class consumers' desire to save money. The company has had to lower sales forecasts in anticipation of a further market slowdown.
Macy's stores outside shopping centers have been performing the best recently. In new small-format locations, the retailer recorded an increase in comparable sales. In contrast, other formats reported a 7% decline in the first two fiscal quarters.