New Details Emerge on Macy's Backstage Locations

6/8/2015
Macy's, Inc. unveiled two additional pilot store locations in metro New York City for Macy's Backstage, the forthcoming off-price business channel that will help the company against competitors such as Nordstrom Rack and TJ Maxx.

Together with four initial pilot locations announced last month, these two additional stores will bring to six the total number of Macy's Backstage for launch. All are expected to open in fall 2015 and average about 30,000 square feet.

Pilot locations being announced today are:

Fordham Place, 400 East Fordham Road, The Bronx, N.Y.
Essex Green Shopping Center, West Orange, N.J.

At Essex Green, an existing Macy's store will be converted to Macy's Backstage. The Macy's Essex Green store will begin a final clearance sale on Sunday, June 14, which is expected to conclude in late July or early August. It will close for extensive remodeling before opening as Macy's Backstage in about half of the existing space.

Macy's Backstage will offer an assortment of women's, men's and children's apparel, shoes, fashion accessories, housewares, home textiles, intimate apparel and jewelry. Each store also will include amenities, such as free WiFi and a suite of spacious fitting rooms. One location will also test a cafÉ concept.

Merchandise will include clearance goods from Macy's stores, as well as special buys from recognized fashion brands – all at between 20 percent to 80 percent off of original and comparable prices for similar merchandise.

"We continue to be very excited about the coming of Macy's Backstage. Feedback we have heard from shoppers since the initial public announcement of our first four pilot locations has been enthusiastic, and our team looks forward to bringing this fresh new retail concept to life," said Peter Sachse, Macy's chief innovation and business development officer. "These two new locations will enhance our opportunity to learn from the pilot stores. At Essex Green, we will begin to understand the dynamics of converting an existing Macy's store to Backstage. At Fordham Place, we will be part of an iconic urban retail center in a densely populated community. As is Macy's practice, we will test and learn to see what resonates most with customers so we can adjust our strategies before rolling out additional locations."

Each Macy's Backstage store is expected to hire a staff of 30 to 45 associates. The four previously announced pilot locations are:

Sheepshead Bay (2027 Emmons Ave.), Brooklyn, N.Y.
Queens Place, Elmhurst (Queens), N.Y.
Lake Success Shopping Center, New Hyde Park, N.Y.
Melville Mall, Huntington, N.Y.

Macy's Backstage stores will accept Macy's charge cards, as well as other forms of payment. Macy's Backstage business will not be driven by promotional events and Macy's coupons will not be accepted in the off-price locations. The value of the Macy's Backstage offering will be clear to customers. More details will be announced as the opening dates approach.

At Essex Green, associates displaced by the store closing may be offered positions in nearby stores, including new Macy's Backstage locations, where possible. Eligible full-time and part-time associates who are laid off due to the store closing will be offered severance benefits.
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