As the luxury market continues to navigate a downward spiral as it attempts to diversify, Macy's has chosen to take the opposite path, placing all its bets on its more premium counterparts by developing new strategies.
In February, Macy's announced it would close about 150 U.S. stores by 2027 as part of its restructuring plan after reporting earnings that reflected little to no growth.
Don't miss the move – SIGN UP for TheStreet's FREE daily newsletter
According to Macy's, this strategy allows the company to adapt to the rapid growth of online shopping and consumers' ever-evolving retail behavior.
During its latest earnings call, Macy's executives said they would focus on the company's most profitable brands as its premium assortment has proven more resilient, which is why this latest development is a significant but viable additional investment that The company is willing. do for the sake of its future growth.
Macy's announces the opening of its fourth Bloomie's branch
This week Macy's (METRO) the parent company of Bloomingdale's, announced would open its fourth Bloomie's store at The Grove shopping center in Shrewsbury, New Jersey, on November 14.
Bloomie's is a small-format Bloomingdale's concept that is just a fraction of the size of a regular location. There are currently three Bloomie's locations open in the U.S., including Fairfax, Virginia, Skokie, Illinois, and Seattle, Washington.
However, this location will be different from the others, as it will be the first Bloomie's to have a women's-only assortment where customers can shop for clothing, accessories, beauty products and fine jewelry.
Related: Macy's Mass Store Closing Plan Could Have Unexpected Benefits
As listed at Macy's conference For the second quarter of 2024, women's ready-to-wear and premium brand fragrances are Bloomingdale's strongest categories.
Therefore, opening a Bloomie's dedicated to showcasing a women's-only selection attests to the company's intentions to serve its customers by following trends and focusing on sourcing a more targeted assortment to potentially increase revenue.
“Bloomie's is a perfect example of how our brand continues to evolve with the needs and preferences of our shoppers,” said Rachel Abeles, senior vice president of customer and revenue growth, in the press release.
Although these smaller concepts do not currently represent a large portion of the company's overall business, they are a driving force in building brand awareness by bringing Bloomie's to more locations without spending the same amount of money it would take to develop a full-size concept. complete. store.
Macy's takes advantage of the holiday season to showcase its brands
To celebrate the store opening and take advantage of the holiday season, Bloomie's will host a series of events at its newest location to create greater brand awareness within the community.
At the grand opening, Bloomie's will host “Bloomie's Winter Village,” a winter wonderland-inspired event with multiple brand activations. On December 7, Bloomie's will host a Christmas party that will include a private shopping and meet and greet with Santa.
One reason Macy's wants to prioritize its luxury suppliers could be that its marketing relies heavily on events financed by brands.
On Tuesday, Macy's too announced its first “Holiday Square” event at its flagship location in New York City's Herald Square in partnership with Urbanspace, a local business.
From November 1 to January 3, Macy's will host a holiday event offering a unique shopping experience where customers can find gift ideas and exclusive products while enjoying holiday treats and hot beverages from several local businesses.
More retail:
- PepsiCo makes a surprising move with an irresistible snack brand
- Iconic Mexican restaurant saved by a great rival
- McDonald's reveals partnership with beloved breakfast giant
According to Macy's latest reported earnings For 2024, the company's net sales fell 3.8% year over year, and comparable sales fell 4%.
The Macy's brand reported a sales decline of 4.4%, with comparable sales falling 4.5% compared to the prior year.
Although Bloomingdale's did not report positive numbers, the decline was smaller: Net sales were down 0.2% and comparable sales were down 1.1% compared to the same period last year.
Related: Veteran Fund Manager Sees a World of Hurt for stocks
