Has Backstage found its place inside of Macy’s?
Continuing its fast rollout, Macy’s announced plans to expand Backstage in-store shops to 37 more full-line locations this spring, bringing the off-price concept to nearly 60 percent of the chain and reaching its Herald Square and State Street flagships.
The 37 shops, measuring from 11,000 to 16,000 square feet, come on top of 45 in-store shops added in 2021. The concept will reach about 300 of Macy’s 510 locations.
“Macy’s Backstage inspires customers to express their personal style through its offerings of quality merchandise and brands at great prices, which is why we look forward to bringing Macy’s Backstage into more of our local communities,” said Michael Hersh, Macy’s vice president of off-price, in a statement. “We are especially excited to bring Backstage to our downtown stores in Chicago and New York City as the brand expands nationwide.”
The retail company, which also owns Bloomingdale’s and Bluemercury, operates six freestanding Backstage locations.
Backstage launched in 2015 as a standalone concept as Macy’s looked to tap into strong growth being seen across the off-price channel. By 2016, Macy’s had shifted its focus to in-store shops in hopes the concept would drive higher shopping frequency and pull in new customers. Despite hearing investor concerns about cannibalization, Macy’s by early 2019 was indicating that adding Backstage in an existing store was providing more than a five-percentage-point sales lift on average.
Macy’s full-line stores and Backstage have completely separate buying teams.
Asked in early March for an update on Backstage at an investor conference, Macy’s CFO Adrian Mitchell said, “It’s an important dimension for us to operate across all three of those value tiers — the luxury tier, the off-price tier and all the stuff in the middle — so it’s been really well received. It continues to have a very healthy growth profile, but it’s certainly tapping into a younger, more diverse customer that’s a bit more value-oriented than our full-line box, so we’re excited about the opportunities there.”
- Macy’s Expands Backstage Store-Within-Store to 37 Additional Locations in Spring 2022 – Macy’s
- Macy’s Accelerates Backstage Off-price: Where It’s Headed – WWD
- Macy’s Inc (M) Q4 2018 Earnings Conference Call Transcript – The Motley Fool
- Macy’s (M) CFO, Adrian Mitchell Presents at UBS Global Consumer & Retail Conference – Company Call Transcript – Seeking Alpha
- Backstage shops star inside Macy’s – RetailWire
DISCUSSION QUESTIONS: Has the Backstage concept proven itself inside Macy’s full-line locations? Does the rollout of Backstage inside Macy’s stores mean the concept will not take off as a standalone concept?