Macy's Inc. announced Bloomingdale's is following Nordstrom and a host of other competitors into the outlet business with plans to open four stores in the summer or fall of this year.
The first upscale outlet stores, which will run roughly 25,000 square feet each, will open in Bergen Town Center in Paramus, NJ; Dolphin Mall in Miami; Potomac Mills in Woodbridge, VA; and Sawgrass Mills in Sunrise, FL. The chain expects to roll out further outlets in 2011.
"Bloomingdale's Outlet stores are an opportunity to expand our presence in new and existing markets, as well as to remove clearance from full-line Bloomingdale's stores in a timely manner," said Michael Gould, chairman and chief executive officer of Bloomingdale's, in a press release. "The customer experience in these stores will reflect the Bloomingdale's brand with a strong value message."
Bloomie's new outlets will sell a range of apparel and accessories reflective of what the chain offers in its department stores.
The company has hired Arnold Orlick, the former president of Federated Department Stores' (later Macy's) Rich's/Lazarus/Goldsmith's division in Atlanta, to run the outlet store business.
Macy's Inc. is not alone in pursuing an outlet store strategy. Nordstrom has been growing its Rack business and many others are opening outlet locations, as well.
"We are just seeing a tremendous interest from brands, retailers and developers," Lisa Quier Wagner, president of Quier Target Marketing Inc., told Retail Traffic. "I've been in the industry 21 years, and I've never seen an interest in outlets as acute as it is now."
Success, said Ms. Quier Wagner, "is all about the brand. The consumer is attracted to the brand and the discount, but the brand first. The multi-brand and discount stores don't fare as well because the consumers look at the store and they don't understand what it's selling."
Discussion Questions: What are your thoughts on the rush by a growing number of retailers to open outlet stores? What will Bloomingdale's need to do to succeed in its outlet store venture?