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05/12/2015

Macy's Foray into Off-Price Retailing Begins Fall 2015

Macy’s will embark on its off-price business in fall 2015 with the opening of four Macy’s Backstage pilot stores in in the metro New York City area. This is one of the company’s key growth initiatives, placing the retailer in competition with other outlet retailers, such as Nordstrom Rack and TJX Companies.
 
The recession brought about the need for consumers to save money on department store merchandise, but even as the economy improves consumers' thirst for bargains remains. Macy’s Backstage stores will offer bargain-hunting shoppers clearance goods from Macy’s stores, between 20 percent to 80 percent off of original price, as well as “special buys” from well-recognized fashion brands.

“We believe we can deliver a whole new level of value to customers who appreciate fashion and love to hunt for a bargain,” said Peter Sachse, Macy’s chief innovation and business development officer. “Macy’s Backstage stores will be designed to surprise and delight customers with continuously updated and fresh merchandise assortments focused on delivering current fashion with incredible prices, day-in and day-out, and enthusiastic sales associates.”
 
 
The four stores will average about 30,000 square feet and provide free WiFi, while one location will test a cafÉ concept. All will be supported with both traditional and mobile marketing.
 
 “As with all of Macy’s innovations, we will test and learn to see what resonates most with customers so we can adjust before rolling out additional locations,” Sachse said.