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Woocommerce Category Post Widget
People walk past Macy’s flagship store in Herald Square in New York City.
Macy’s is reportedly about to open a new kind of store, which could be a test with a larger rollout to come.
The department store chain is opening a new space in Southlake, Texas, with a focus on selling apothecary beauty and hair-care items, and with a cafe inside, according to Women’s Wear Daily, citing people familiar with the plans.
The report said the project is being spearheaded by Story founder Rachel Shechtman. Macy’s acquired Story in 2018 and has since added Story’s themed, pop-up marketplaces in more than a dozen of its own stores.
A spokesperson from Macy’s declined to comment.
A search for jobs, located in Southlake, on Macy’s website reveals openings for cafe team members, beauty brand experts and sales associates for a “New Retail Concept at Macy’s.” There is no timing listed for when those positions would begin.
The potential store in Southlake comes as Macy’s is struggling to grow sales at its traditional department stores. The retailer faces a growing threat to its business as more brands pivot to sell directly to consumers, who are increasingly skipping trips to the mall. Macy’s has, meantime, said it is looking at ways to downsize its real estate.
Macy’s also owns the beauty chain Bluemercury, which it bought in 2015 for $210 million.
Beauty is believed by many retail analysts to be one of the strongest growing segments in the industry today, stronger than apparel, which Macy’s has historically relied on to be a boon to its business. Companies like Ulta Beauty and LVMH-owned Sephora are still opening new stores. A pivot toward beauty could be one way Macy’s is looking to get back to growth.
Macy’s in its latest quarter reported its first same-store sales decline in two years. Its holiday same-store sales were down 0.6%.
Macy’s is set to hold a meeting with investors in New York next Wednesday, where it could discuss this concept, WWD said.
Macy’s shares were down less than 1% Friday morning. The stock has fallen a little more than 34% over the past 12 months. Macy’s has a market cap of about $5.2 billion.
Here’s the full story from WWD.