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Macy’s Expanding Off-Price Arm with Pop-Up Shops
In time for the holiday season, the retailer will test Macy’s Backstage pop-ups in approximately 45 stores.
New York--Macy’s Inc. is bolstering its off-price division in time for the holiday season with the launch of Backstage pop-up shops in a select number of stores.
In the fourth quarter, the retailer will test Backstage pop-up apparel shops in approximately 45 Macy’s stores. They will be located alongside Macy’s Last Act clearance sections.
Additionally, in 13 of the locations, the retailer will add new categories of merchandise in the Backstage sections, including toys, home décor and “queue products,” or the products seen while waiting in line at checkout.
The news of the division’s expansion comes as the retailer continues to shutter stores across the country. Macy’s has said it plans to close 100 underperforming full-line locations by early next year.
In its most recent financials, the company reported that sales in the third quarter ended Oct. 29 were down 4 percent to $5.63 billion.
Meanwhile, comparable sales on an owned-plus-licensed basis were down by about 3 percent in the third quarter. On an owned basis, third quarter comparable sales also declined by 3 percent.
The difference between year-over-year change in total and comparable sales was attributed to the closing of 41 underperforming Macy’s stores at the end of fiscal 2015, the company said.
The retailer started its Backstage division last year, joining a number of other majors that are jumping into the off-price game as leaders like TJ Maxx continue to do well. According to a report from The NPD Group this summer, off-price shoppers make up 75 percent of apparel purchases across all retail channels.
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