Macy’s wants to bet big on Backstage.
The retailer, which credited part of its solid first-quarter earnings to burgeoning off-price division Backstage, seeks to expand its reach of bargain shoppers by introducing outlets in every store, CEO Jeff Gennette said in an interview with The Street following a Thursday conference held by the financial news site’s sister publication, The Deal.
“We eventually hope to have one [Backstage outlet] in every store,” he said.
The Street added that the department store chain, which operates about 650 locations across the country, hopes to end the year with around 160 Backstage outlets, particularly after test runs in the West Coast showed that stores with a Backstage outlet have seen positive comp sales.
Backstage is already scheduled to set up shop in more than 100 Macy’s stores (including premium malls) in 2018, the company reported upon posting Q1 earnings. It will also introduce a dedicated Backstage distribution center in Columbus, Ohio, which will open in fall of 2019.
Macy’s debuted its off-price concept in 2015, starting with six stores that grew to more than 60 Backstage outlets across the country. Shoes, accessories and apparel as well as home decor, cosmetics and jewelry all have a place on the selling floor.
The announcement is the latest news for the company, which has undergone a retail overhaul in recent months from closing brick-and-mortar spots to testing lockers for online pickup and revamping its loyalty program as it continues to face heavy competition from e-commerce players like Amazon.