Will Macy's experiment solve its Millennials problem?
When it comes to trying to court the much sought-after Millennials shopper, Macy's appears to be sparing no expense. The retailer recently redesigned its flagship location at Herald Square in New York City, and as part of the $400 million renovation turned its basement into a location called One Below. The new shop is designed specifically to feature what Millennials want, or at least Macy's interpretation of what Millennials want.
According to Bloomberg, One Below features a laundry list of products all targeted towards 13- to 22-year-old shoppers (who, depending on where one draws the line, may fall into the latter era of the broadly-defined Millennial category or into Generation Z). The offerings described go far outside the traditional apparel found at Macy's: wearable tech and tech accessories; a machine that does customized embroidery on Levi's jeans; a 3-D printer that makes jewelry and iPod cases; and a so-called "selfie wall," which projects pictures of New York City landmarks in front of which people can take selfies.
The store booms with house music, reminiscent of an Abercrombie & Fitch or Express for Men in their heydays. Photos indicate a glittery but modern appearance that looks part Limited Too, part Apple Store.
Photo: Macy’s
Macy's also intends to bring in a machine that will allow people to have their selfies 3-D printed into figurines — perhaps a 21st century take on the plastic Mold-a-Rama machines that once drew lines in museums and zoos.
Whether the high-tech bells and whistles and non-traditional product selection will pull in the desired shoppers is something Macy's itself may be trying to determine. The company plans to roll out some features of the One Below store in its mall locations throughout the country, presumably using its flagship store to field test the success of different features and products.
Given its unique location, the specific kind of Millennial that may visit the store — typically either a tourist or a NYC resident — could have markedly different interests, not to mention disposable income, than Macy's shoppers in other parts of the country.
Regardless, Macy's definitely sees attracting young shoppers and cultivating brand loyalty as central to the retailer's future. In 2013 the retailer began launching more Millennial-oriented apparel brands, and began experimenting with store layout and increasing social media campaigns specifically to attract younger shoppers.