Macy's Wants To Turn Its Stores Into Discount Outlets
In an effort to turn things around, Macy's announced it would bring its new discount brand "Backstage" into its retail stores, a move designed to boost in-store sales.
The "Backstage" stores launched last year at four New York City locations, and offer designer brands at up to 80% off. Other retailers such as TJ Maxx and Nordstrom Rack have adopted similar strategies, pointing to a broader trend in retail, Business Insider reports.
But some are skeptical that the discount outlet strategy will work long-term. As consumers become used to the discount brand, they may be unwilling to pay full price, retail consultant Robin Lewis says.
Macy's recently announced 40 store closures amid stagnant revenue and poor sales performance. Meanwhile, investors are looking for ways to tap into its $21B real estate holdings to boost stock, currently valued at more than the entire company itself. [BI]