Macy's makes big bet on off-price

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Macy's makes big bet on off-price

By Gina Acosta - 05/01/2018
To support the growth of Backstage, Macy’s, Inc. plans to open a dedicated Backstage distribution center in Columbus, Ohio.

Macy's is staying in the mall but going off-price in its search for growth.

The retailer has opened approximately 20 Backstage locations in the first quarter of fiscal 2018 as part of its previously announced plan to open 100 locations within existing Macy’s stores in fiscal 2018. Many of these locations are in markets new to the Backstage concept, including the Northwest and Southwest. The company’s initial Backstage stores were clustered in the Northeast.

To support the growth of Backstage, Macy’s, Inc. plans to open a dedicated Backstage distribution center in Columbus, Ohio.

“Our customers are thrilled about the Macy’s Backstage shopping experience,” said Michelle Israel, Macy’s senior vice president of off price. “Macy’s Backstage brings great deals, the thrill of the hunt and fun into our existing Macy’s locations. The focus on value and newness guarantees that with each visit, shoppers will find a compelling assortment of recognizable brands, trends and deals. We’re pleased to be expanding the Backstage shopping experience across all of our regions, including to the West Coast.”

The distribution center in Columbus, Ohio, is another step in the company’s commitment to the state of Ohio, where it is headquartered. The distribution center is planned to open in Fall 2019, and Macy’s, Inc. anticipates it will create approximately 400 jobs. This is in addition to the approximately 6,500 employees in Ohio who work at 24 Macy’s stores, one Bluemercury and the company’s corporate offices in the greater Cincinnati area.

“Macy’s has a strong business in Ohio, and we are excited to continue building our presence in the state,” said Jeff Gennette, Macy’s, Inc. chairman and chief executive officer. “We are fueling the expansion of our Backstage concept by adding a new distribution center and creating 400 more Macy’s jobs in Columbus, Ohio. This new distribution center will enable us to move merchandise to our Backstage locations faster and with more flexibility.”

Macy’s, Inc. operates more than 690 department stores under the nameplates Macy’s and Bloomingdale’s, and approximately 160 specialty stores that include Bloomingdale’s The Outlet, Bluemercury and Macy’s Backstage. 

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