Macy's has announced plans to increase the number of small-format stores it operates around the country. The popular department store, which has been a staple of shopping malls for decades, plans to open up 30 new stores by the fall of 2025, bringing the total number of small format stores to 42.
Macy's did not provide specific locations for the stores but previously said it plans to open four stores in the West and Northeast before the end of the year.
Macy's said that the smaller stores will be about one-fifth the size of its regular stores, ranging in size from 30,000 to 50,000 square feet. The new stores will be located in strip malls, next to other discount retailers and grocery stores.
The stores will have less merchandise, focusing on clothing and cosmetics. Shoppers will also be able to order items online and pick them up in the new locations.
As traffic at shopping malls dwindles, Macy's hopes the increased foot traffic in suburban strip malls will drive sales at the new locations.
The company said that while the first eight smaller format stores to open were called Market by Macy's, the new stores will just be called Macy's.
"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," Macy's Chief Financial Officer Adrian Mitchell said.