Macy’s is looking to grow its store base outside of malls, according to CNBC. Macy’s CEO Jeff Gennette revealed plans to test several smaller Macy’s and a Bloomingdale’s at non-mall locations, as well as a continued effort to grow its discount Macy’s Backstage brand.
“We continue to believe that the best malls in the country will thrive,” said Gennette on a call with analysts. “However, we also know that Macy’s and Bloomingdale’s have high potential [off]-mall and in smaller formats.”
The department retailer’s Q2 2020 results were better than expected: e-Commerce sales jumped 53% year-over-year due to increased interest in workout clothes and home decor. However, same-store sales fell 34.7% due to the continued impact of the pandemic, and Macy’s projected a 20% drop for the fall season.
“We are encouraged by our second quarter performance; however, we continue to approach the back half of the year conservatively,” said Gennette in a statement. “Our immediate priority is successfully executing holiday 2020. We are also focused on laying the groundwork for 2021 and beyond. We plan to invest in fashion, digital and omnichannel, work with agility, and galvanize the resources of the company to serve our customers and move the Macy’s, Inc. business forward.”
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