On Tuesday, Macy’s, Inc. (NYSE:M) announced plans to open four discount stores during the summer season. The decision is part of the company’s restructuring strategy.
Macy’s will strategically place the stores within New York, where they will be evenly spread out to cater for the demand in the large city. The stores will take the title, “Macy’s Backstage” and they will be well supplied with products from the retail company. However, the stores will not be focused on publicity events, nor will they accept coupons from obtained from the parent company.
Backstage is a completely new retail idea that was originally developed by the company’s research and marketing team. The concept was developed over a period of six months, giving the team the opportunity to throw in some creative ideas into the concept.
The project will undergo a piloting process before finally rolling out to the rest of the selected locations. The pilot phase will be carried out at Melville Hall in Huntington, Sheepshead Bay in Brooklyn and Queens Place in Queens.
Macy’s history goes back to 1858 where it started as a dry goods shop on the intercept between 6th Avenue and 14th Street in New York. The company has constantly been on a mission to alter its service strategy in an effort to adapt to the constantly changing consumer trends.
Just like many businesses, the company has plans to carry out more activities in the e-commerce department. The company, therefore, plans on jumping onto the growing wave of online retail. Macy’s, Inc. (NYSE:M) will follow this up with discount stores and also setting up more outlets for its products.
The new changes will affect the company in various ways. More than 2000 of the company employees will be affected while Macy’s expects charges to amount to $120 million by the end of the year. On the plus side, the company will be able to save about $140 million from the restructuring efforts. While the number of workers is expected to remain at a constant 175,000, share projections expect better performance in the stock market.