The growing popularity of off-price stores such as TJ Maxx and Nordstrom Rack seems to have enticed another major retailer to join the game: Macy’s. Last Tuesday, the department store giant announced that it was looking into creating a chain to compete with these outlets.
“Macy’s has, for many years, had a reputation as a nicer middle-class department store where people can find nice products in a fairly wide range of prices, while Nordstrom and Saks both were generally considered so high-end that they were losing out on a huge group of shoppers. It made sense for them to create off-price chains but I don’t see it working out as well for Macy’s. They might pick up a few more shoppers, but probably not enough to offset the price of a new chain,” commented Zel Bianco.
“As the article mentioned, Macy’s is at the forefront of omni-channel strategy. They also have an excellent loyalty program and sales strategy. I hope they continue to focus on the customer experience and move forward with what has been working, instead of dividing up resources for an unnecessary and risky new brand.”
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