Macy’s Forays Into Strip Malls With Smaller Stores — Retail Bum

Macy’s is rethinking its physical retail strategy by moving away from big malls and venturing into strip malls, where it plans to open inventory-light physical stores.

The retailer’s new strategy comes in response to investors’ belief that traditional department stores are no longer attractive. The company is thus focusing on thriving shopping centers and rapidly growing suburbs, where it will offer a thoughtfully curated assortment of popular brands in smaller store locations.

The company is initially taking a trial-and-error approach to opening stores in strip malls while it phases out its off-mall stores.

In a recent interview with CNBC, CEO Jeff Gennette said 2023 is going to be a crucial period for Macy’s as it tests out its new strategy.

As part of the effort to reboot the company’s approach to physical stores, Macy’s has already launched two smaller store concepts, Bloomie’s and Market by Macy’s, which are roughly one-fifth the size of the typical Macy’s and Bloomingdale’s stores.

At Bloomie’s, shoppers can enjoy a unique experience of browsing for products from brands such as Williams-Sonoma, Sephora, and Lululemon while sipping a glass of wine. The store also caters to pet owners by offering them pet accessories and water…