Milwaukee Journal Sentinel

Macy’s opens off-price ‘Backstage’ shop at Mayfair

It’s contained within department store

- RICK ROMELL

Macy’s has unveiled the first Wisconsin edition of Backstage — the off-price venture central to the big retailer’s efforts to increase shopper traffic and boost sagging sales numbers.

The store-within-a-store quietly began doing business Friday at Macy’s Mayfair location — a “soft opening” designed to work out any bugs before a full-blown grand opening set for Saturday.

At 20,000 square feet carved out of lower-level space that used to house intimates and children’s clothing, the Backstage shop is a good-sized area stocked with an eclectic assortment of merchandis­e aimed at bargain-hunting customers.

It’s among the latest of 48 shops opened nationwide since 2015 by Cincinnati-based Macy’s. Most, like the one at Mayfair, are inside full-line Macy’s department stores.

Backstage is meant to appeal to “a savvy and fashioncon­scious customer … who loves great deals,” Stephen Lucas, manager of the Macy’s at Mayfair, said as he showed off the new outlet operation.

The merchandis­e — from Calvin Klein scarves ($14.99) to Nine West handbags ($29.99) to five-ounce bags of kettlestyl­e, avocado oil, lime ranch chips ($2.99) — is sourced by buyers who work exclusivel­y on Backstage, not the full-line Macy’s operation.

Quantities are small, deliberate­ly. The idea is to foster a “thrill-of-the-hunt” mentality and push shoppers to act promptly when they spot something they like. Backstage doesn’t discount or offer coupons; the prices marked are as low as they’re going to get.

“You may see these two things now, and if you don’t get it now it may not be here three days later,” Lucas said. “Because this is it — we get it and we move on. The assortment in the store is quick moving.”

And with the merchandis­e changing often, customers have incentives to return frequently, Macy’s media relations manager Carolyn Ng said. That, at least, is the hope.

Shoppers don’t pay for purchases in individual department­s as they do elsewhere in Macy’s. Rather, they queue up in a single checkout line, where employees wearing bright red “Stage Crew” T-shirts staff five registers.

The winding route to the registers is stocked with an almost-quirky variety of potential impulse purchases — gourmet snacks, smartphone power packs, “microbead” travel pillows, honey balsamic salad dressing, Reebok crew socks,

even a hardcover book saluting the busty-babe heroines of DC Comics fame.

If it all sounds sort of like a TJ Maxx-type operation, that might not be coincidenc­e. Discounter­s such as TJ Maxx, sister brand Marshalls, and Ross Dress for Less have thrived while traditiona­l department stores like Macy’s have struggled.

Following the lead of upscale retailer Nordstrom, which has seen good results from its offprice Nordstrom Rack unit, other department stores have begun heading down the discount path.

Kohl’s is experiment­ing with a handful of Off/ Aisle stores separate from the full-size Kohl’s stores. Macy’s is further along in its off-price efforts, and has been concentrat­ing on opening Backstage shops within its department stores.

That strategy could help Macy’s operate more efficientl­y, and drive traffic to its stores, said Anne Brouwer, a senior partner with Chicago-based retail consultant McMillan Doolittle. It also raises the question of whether lowpriced Backstage shops will cannibaliz­e the fullline stores. But with Macy’s sales already slumping — sales at existing stores have posted yearover-year declines for nine consecutiv­e quarters — “better to cannibaliz­e yourself rather than let somebody else do it,” Brouwer said.

In any event, the Backstage results to date have been positive, Ng said.

“For the stores that have this store-in-store concept, there has been an overall lift in the building, in the full line, so it’s a positive,” she said.

Macy’s started Backstage with free-standing stores in 2015 and launched the store-within-a-store idea last year.

With Macy’s overall shopper traffic down, the retailer isn’t risking a lot in giving Backstage a try, Brouwer said.

“There’s a lot to be learned,” she said. “It’s early stages. There are solid business reasons why they are moving this direction. It makes a lot of sense in terms of the operating efficienci­es.

“The question is, how does the customer respond?”

 ?? ANGELA PETERSON / MILWAUKEE JOURNAL SENTINEL ?? Lisa Johnson and her daughter Gabrielle, 8, of Milwaukee shop for bags Monday at the new Macy’s Backstage store at Mayfair mall. For more photos, go to jsonline.com/business.
ANGELA PETERSON / MILWAUKEE JOURNAL SENTINEL Lisa Johnson and her daughter Gabrielle, 8, of Milwaukee shop for bags Monday at the new Macy’s Backstage store at Mayfair mall. For more photos, go to jsonline.com/business.
 ?? ANGELA PETERSON / MILWAUKEE JOURNAL SENTINEL ?? The Center Stage area of the new Macy’s Backstage is featuring men’s clothing for Father’s Day.
ANGELA PETERSON / MILWAUKEE JOURNAL SENTINEL The Center Stage area of the new Macy’s Backstage is featuring men’s clothing for Father’s Day.

Newspapers in English

Newspapers from United States