Recently, Bloomingdale's announced it was looking to expand, but would do so with smaller format stores than it has built in the past. Now, the larger of the Federated Department Store divisions, Macy's, has said it also intends to build smaller units in suburbs with fast-growing populations.
Ertugrul Tuzcu, executive vice president and director of stores for Macy's North, said Macy's is in 74 of 76 major U.S. cities, so the company is looking outside the urban centers for future growth.
Mr. Tuzcu, who oversees the former Marshall Field's locations, said Macy's is planning to build its first new Chicagoland store at the Promenade lifestyle center mall in Bolingbrook.
Macy's is also making other changes, he said. For one, the department store plans to expand its menu of gourmet take-out food. "We'd like to position ourselves as a destination for food [at State Street]," he told the Chicago Sun-Times.
The company is also in the process of reconfiguring its Oak Brook shopping center "test store" in the Chicagoland market, including the rollout of an expanded selection of sizes in women's clothing. The store will house a greater number of apparel choices from petite to plus sizes.
Emphasis is being placed on plus-size fashions, said Mr. Tuzcu. Macy's plans to offer a deep selection of choices from its own branded lines: Alfani, INC and Charter Club.
The company will emphasize more focused service for other consumer targets including the opening of a separate shopping "zone" for teen girls 14 to 18.
Discussion Questions: Which of the planned changes at Macy's will be most important for its future growth? Do you see other changes that could help the department store chain achieve even greater growth?