Earlier this month Macy’s announced that it will open four pilot locations for their new off-price (aka. discount concept) ‘Macy’s Backstage’. The stores will be similar to other department store outlets like Nordstrom Rack, Saks Off Fifth, Neiman Marcus Last Call etc. The offer will be a mix of clothing and homewares with a discount of 20-80% off their prices, with the first store due to open in Spring (Fall in the US).
Macy’s is one of the slowest movers into this area, Chief Executive Terry Lundgren acknowledges this saying he hasn’t always felt this type of business was the right move for Macy’s. Why? Because Macy’s price point already sits very close to discount department stores. It’s not an upmarket store like Neiman Marcus, rather it’s pretty mainstream.
Macy’s Chief Innovation and Business Development Officer, Peter Sachse, has led this project – working on the concept for the past 6 months with a team of 20 leaders.
Aside from ‘Backstage’ it looks like Macy’s has a bit on it’s plate – they just bought Bluemercury (beauty retailer) for $210 million, they’ve restructured their merchandise and marketing function to represent a single omnichannel view of the customer; plus they are looking at international expansion – so far Abu Dhabi is on the list due to open in 2018.