Macy's announced this week that it will be opening 30 small-format stores away from its traditional storefronts, as some see the modern American mall decline in popularity.
The department store chain has been on a mission to open more locations away from malls, with the company announcing that 30 small-store formats will open through fall 2025. That means in two years, 40 of Macy's roughly 800 stores nationwide will be in the smaller scale format as the chain seeks to improve its efficiency and viability.
"Our small-format stores are efficient to operate, provide the customer with a shopping alternative within our omnichannel ecosystem and present a unique opportunity to target high-traffic shopping centers," Adrian Mitchell, Macy's chief operating officer and chief financial officer, said in a statement on Tuesday.
Shoppers, meanwhile, can expect to see 12 new small-scale Macy's open up by the end of 2023.
End of the Shopping Mall Era
For decades prior, shopping malls bustled as a hub of retail and community activities. However, in recent years, they've fallen to the wayside as online shopping stole a significant number of profits.
The coronavirus only worsened the situation for brick and mortar retailers. When the pandemic hit in 2020, shoppers avoided stepping foot in malls for fear of contracting the virus, with many becoming even more reliant on the convenience and flexibility of e-commerce.
For many retail giants, it was a sign of dark times ahead, and even those who were historically some of the most popular were not immune to the new pressures.
Bed, Bath & Beyond filed for bankruptcy in April before being sold to Overstock and closing all of its physical storefronts. Other chains that filed for bankruptcy include David's Bridal and Tuesday Morning. Meanwhile, Walmart and Target have closed several locations as well as they face high retail theft and declining sales.
Over the past year-and-a-half, at least 2,000 stores have shuttered for good as the sector faces stunted sales and reduced foot traffic.
In roughly 10 years from now, experts predict only 150 malls will remain open across the country, Insider reported last October. While there were nearly 3,000 malls nationwide in the 1980s, that number has now dwindled to just 700 today.
The New Format
Each small store for Macy's will range between 30,000 and 50,000 square feet, which makes them roughly one-fifth the size of the company's traditional units.
The change to its store fleet follows similar decisions made by other retail chains like Target, Nordstrom and Kohl's, which are also moving to smaller store models.
By placing new storefronts in off-mall shopping strips, retailers are looking to more carefully curate their merchandise for shoppers while also boosting foot traffic.
To date, Macy's already operates 15 small-format locations, including several Bloomie's. Bloomie's is the smaller version of Bloomingdales, which Macy's Inc. also owns.
Newsweek reached out to Macy's via email for comment.
Uncommon Knowledge
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Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
About the writer
Suzanne Blake is a Newsweek reporter based in New York. Her focus is reporting on consumer and social trends, spanning ... Read more
