Thanks for Visiting!

Register for free to get the full story.

Sign Up
Already have a Placer.ai account? Log In

Why Macy’s Is Embracing the Off-Price Treasure Hunt

by 
Shira Petrack
 on 
June 1, 2022
Why Macy’s Is Embracing the Off-Price Treasure Hunt

Our latest whitepaper explores five retailers who have stayed relevant over decades of changing shopping habits. The oldest retailer in our report, Macy’s, has consistently kept their finger on the pulse of shifting consumer preferences and adapted their brick and mortar  strategy accordingly. We dove into one of the brand’s latest innovations – the off-price shop-in-shop concept Macy’s Backstage – to understand how incorporating Macy’s Backstage into existing Macy’s locations was boosting visits to the department store. 

Below is a taste of our findings, and the full report can be accessed here

The Secret to Macy’s Longevity 

Macy’s, one of the first department stores in the United States, has been around since the mid-nineteenth century. One of the secrets to Macy’s success has been the brand’s ability to tap into the full potential of its stores. As the rise of ecommerce ate into the “one-stop-shop” value proposition, Macy’s has doubled-down on the department store's role in discovery and focussed on creating an environment where shoppers can easily and efficiently browse for new brands and products. 

Over the past couple of years, Macy’s has opened a variety of shop-in-shops in select stores to give people a reason to visit Macy’s locations and provide consumers with a product-discovery experience they cannot access online. To this end, the department store has implemented partnerships with Pandora, Toys “R” Us, and even Wetzel’s Pretzels. These shop-in-shops have helped bring shoppers back to Macy’s following the pandemic-induced brick and mortar retail lull. 

The Evolution of Macy’s Backstage  

Even before these brand partnerships, Macy’s began experimenting internally with the shop-in-shop concept to give consumers an additional reason to stop by Macy’s locations. In 2015, Macy’s launched its new off-price brand Macy’s Backstage. According to their release, the new brand brings shoppers “the best of the Macy's department store brand mixed with the fun of bargain shopping at an outlet.” 

Although initially established as a stand-alone brand, management quickly shifted to bringing the Backstage brand into existing Macy’s locations. These Backstage shop-in-shops take a page out of the off-price’s playbook, providing customers with a treasure-hunt experience thanks to the constantly changing assortment of products. And following the example of other off-price retailers, Macy’s Backstage products are not available for purchase online – only in-store. 

By early 2019, Macy’s management found that adding Backstage to an existing store provided an average sales lift of 5% – and recent foot traffic data supports this claim. Comparing year-over-three-year (Yo3Y) changes in visits for Macy’s stores with and without Backstage shop-in-shops in the states California and New York show that Macy’s with a Backstage section are seeing a much better COVID recovery trajectory than those without. 

Macy’s Backstage Expands 

Recently, Macy’s announced that it will expand the Backstage brand, with plans to open 37 new Backstage shop-in-shops in existing Macy’s stores. This will bring the off-price concept to nearly 60% of the chain, including the brand’s iconic flagships at Herald Square in New York City and State Street in Chicago, in addition to the nine free-standing Backstage locations that were operating by the end of Q1 2022.

The success of the Backstage concept in drawing more shoppers to Macy’s points to the department store’s continued ability to meet current market demands and answer the needs of today’s consumers. By expanding its Backstage concept, Macy’s is ensuring that its stores offer a unique experience while capitalizing on the growing demand for discount products – especially among high- and mid-income shoppers.

To read about the other legacy brands charting a new course, read the full whitepaper

Over a century and a half has passed since the brand opened its first store in New York City in 1858, and the company is still going strong – in 2021, Macy’s venues nationwide collectively received over 370 million visits. As long as Macy’s continues innovating its in-store offerings to give shoppers a reason to visit, the brand will continue serving customers for many years to come.

Get 3 brand & industry
breakdowns every week

Subscribe to the newsletter

Great! Prepare your inbox for data-driven insights...
Oops! Something went wrong while submitting the form.

Get a Demo

Please enter your first name
Please enter your last name
Please provide a valid email
Please enter your email
Please enter company name

Thanks for reaching out!

One of our experts will be in touch soon

Try Placer.ai Free
Oops! Something went wrong while submitting the form.
Pent-Up Demand Ahead of October Sales Events
4 Strategies Retailers are Using to Drive Traffic to Their Venues
5 Key Regional Grocery Players Impressing in 2023
Upscale Kitchenware Trending Up
Costco Finds More Room for Growth
Four C-Store Chains Making an A-Grade
National Parks + Outdoor Summer Activities
Diving Into Darden: Summer 2023 Update
The Summer Event Effect
Messi: Massive in Miami
Looking Back on Back to School 2023
The Anchor Recap: August 2023
Placer.ai Office Index: August 2023 Recap
Placer.ai Mall Index: August 2023 Recap
Placer.ai White Paper Recap: August 2023
Starbucks Pumpkin Spice Latte Strikes Again
Big Scoop: We All Scream For Ice Cream
Sports Away: Lululemon & Nike’s Momentum Continues
Summer Visits Heat Up For Recreation and Outdoor Gear Chains
No CSS overwrite - July 2023 Office Index Recap
Staging - August 2023 Mall Indec
Mid-Atlantic Grocery Deep Dive
Experiential Chains Heating Up This Summer
Petco Goes Big by Going Small
Ulta Beauty: Leading the Discretionary Pack
Discount and Dollar Chains Continue to Thrive
Summer of Sports: DICK’s Sporting Goods and Hibbett Sports
Off-Price: Succeeding Into Summer
The Anchor Recap: July 2023
Superstores Maintaining Pandemic Gains Amidst Economic Headwinds
2023: Home Improvement at the Halfway Point
July 2023 Office Index Recap
Placer.ai Mall Index: July 2023 Recap
widget test
The Taylor Swift Visit Lift
Southwestern Grocery Dive
July 2023 White Paper Recap: Halfway Point Review & Quarterly Index
Yum! Brands: Driving Dining Visits
Slurpees and Summer Movies Stimulate Consumer Foot Traffic
Cool Beans: Summer Coffee Update
Checking In on Back to School 2023
Crocs and New Balance Tip The Scales
Burger Bliss: Shake Shack and In-N-Out Stacking Visits
Chipotle & McDonald's Continue to Reign Supreme
Vibenomics and Placer.ai Partner to Enhance Retail Media In-Store Measurement
California Grocers Here We Come!
Marriott’s Different Audiences
Bonchon and Kura Sushi Thrive in the Fast-Casual Scene
A Shoe In: Footwear Climbs to the Top
Cheers! Raising a Glass to Beverage Retail
Placer.ai Office Index: June 2023 Recap
Placer.ai Mall Index June 2023 Recap – A Turn of the Tide and a Dive into Open-Air Lifestyle Centers
Local Kitchens: Redefining the Restaurant
Unlocking Urban Insights: The Value in Manhattan’s Employees
Ohio State Parks On The Rise
How is Inflation Impacting the High-Income Shoppers?
Five Fast-Growing Dining Chains
What To Expect From Prime Day and July Sales Events in 2023
The State Of Fashion: How Are Apparel Retailers Faring in 2023?
2023’s Latest Dining Success Story: GEN Korean BBQ House
The NBA Finals: A Location Intelligence Perspective
Moving the Market: The Impact of Domestic Migration on Housing Costs
Post-Pandemic Museum Update
The Darden-est Things
The Enduring Demand for Urban and Suburban Retail
Leveraging Data to Evaluate the Impact of Municipal Investments
Trader Joe's Success Amidst Food Inflation and Changing Consumer Behavior
Placer.ai Office Index: May 2023 Recap
Fitness at its Fittest: Staying Strong in 2023
Movie Theaters, Off-Price, and Home Improvement: May 2023 Recap
Placer.ai Mall Index - May 2023 Recap
What’s Working for Bath & Body Works?
Why Are Specialty Grocers Thriving in 2023?
The CAVA Craze: A Location Intelligence Perspective on the Mediterranean Marvel
How Will Primark’s US Expansion Impact Target?
All Eyes on Eyewear
Northwestern U.S. Grocery Dive
Return of the Lunch: Salad Chains Are Thriving
Retail Media Networks – Off the Beaten Track
Bet Your Bottom Dollar: Discount and Dollar Stores Drive Foot Traffic
Ulta & Lululemon: Discretionary Spending On The Up
The Score After Q1: Sporting Goods Chains
Who Uses NYC Airports: Biting Into The Big Apple’s Main Transport Hubs
Off Price: Strength in The Face of Retail Challenges
Visits Improve for Home Improvement
Walmart, Target & Wholesalers in Q1 2023 – The Return of Mission-Driven Shopping?
Department Store Roundup: Q1 2023
Placer.ai Office Index: April 2023 Recap
Placer.ai Mall Index, April 2023 – A Rebound on the Horizon?
How Will Bed Bath & Beyond’s Bankruptcy Impact the Retail Space?
Buffet Restaurants: Filling Up on Foot Traffic
Thrift Stores: Vintage Visits Drive New Age in Apparel
The Windy City: A Hub of Post-Pandemic Opportunity
Diving into Dining Traffic - Q1 2023
Bring On The Joe
A Dollar (or more) For Your Thoughts: Five Below and pOpshelf
Dining Out With The Cheesecake Factory
Retail Foot Traffic Recap – March 2023
Digging Into 2023: McDonald’s and Chipotle Update
Placer.ai Office Index: March 2023 Recap