While the luxury market continues to navigate a downward spiral by trying to branch out, Macy's has chosen to take the opposite route by placing all its bets on its more premium counterparts by developing new strategies.
In February, Macy’s announced it would be closing around 150 stores across the U.S. by 2027 as part of its restructuring plan after reporting concerning earnings that reflected little to no growth.
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According to Macy's, this strategy allows the company to adapt to the fast growth in online shopping and the ever-evolving consumer retail behavior.
During its last earnings call, Macy's executives said they would turn their focus to the company's more profitable brands, as their premium assortment has proven to be more resilient, which is why this latest development is an important yet viable extra investment that the company is willing to make for the sake of its future growth.
Macy's announces the opening of its fourth Bloomie's location
This week, Macy's (M) , the parent company of Bloomingdale's, announced it would open its fourth Bloomie's store at The Grove Shopping Center in Shrewsbury, New Jersey, on Nov. 14.
Bloomie's is a small-format concept of Bloomingdale's that's only a fraction of the size of a regular location. There are currently three open Bloomie's locations across the U.S., including Fairfax, Virginia, Skokie, Illinois, and Seattle, Washington.
However, this location will be unlike the others as it will be the first Bloomie's to have an all-women's assortment where customers can shop for apparel, accessories, beauty products, and fine jewelry.
Related: Macy's mass store closing plan could have unexpected benefits
As stated in Macy's conference call for the second quarter of 2024, women's ready-to-wear apparel and fragrances by premium brands are Bloomingdale's strongest categories.
Hence, opening a Bloomie's dedicated to showcasing an all-women's selection attests to the company's intentions of catering to its customers by following trends and focusing on obtaining a more targeted assortment to potentially grow revenues.
"Bloomie's is a perfect example of how our brand continues to evolve with our shoppers' needs and preferences," said Senior VP of Customer & Revenue Growth Rachel Abeles in the press release.
Although these smaller concepts don't currently make up a big part of the company's overall business, they are a driving force for creating brand awareness by bringing Bloomie's to more locations without spending the same amount of money it would take to develop a full-size store.
Macy's takes advantage of the holiday season to showcase its brands
To celebrate the store's opening and take advantage of the holiday season, Bloomie's will host a series of events at its newest location to create further brand awareness within the community.
On the grand opening, Bloomie's will host "Bloomie's Winter Village," a winter wonderland-inspired event with multiple brand activations. On Dec. 7, Bloomie's is throwing a Holiday Bash featuring a private sip-and-shop and a meet-and-greet with Santa.
One reason Macy's wants to prioritize its luxury vendors might be that its marketing heavily relies on events funded by the brands.
On Tuesday, Macy's also announced its first-ever "Holiday Square" event at its flagship location in New York City's Herald Square in partnership with Urbanspace, a local business.
From Nov. 1 through Jan. 3, Macy's will host a holiday event featuring a unique shopping experience where customers can find gift ideas and exclusive products while indulging in holiday treats and hot beverages from various local businesses.
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According to Macy's last reported earnings for 2024, company net sales fell 3.8% year over year, with comparable sales down 4%.
The Macy's brand reported declining sales by 4.4%, with comparable sales down 4.5% compared to the year prior.
Although Bloomingdale's didn't report positive numbers, the decline was smaller, with net sales down by 0.2% and comparable sales declining by 1.1% compared to the same time last year.
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