Macy's to open first Bloomingdale's outlets
CINCINNATI - January 21, 2010 -- Macy's Inc. said Thursday it will open its first Bloomingdale's bargain-priced outlet stores this summer and fall in a bid to attract value-conscious shoppers.
The department store operator said the move to open four such stores is a response to consumers' focus on value.
This is Macy's first foray into the outlet store arena. The stores will open at outlet malls in New Jersey, Florida and Virginia.
CEO Terry J. Lundgren said in a statement the company had been studying the "off-the-mall outlet business for some time, and the timing now is right given the consumer's particular focus on value in addition to fashion and quality."
Higher end department stores such as Bloomingdale's have been hard hit by consumers cutting back during the recession, while their off-price offshoots - such as Nordstrom's Rack and Saks Off Fifth - have fared better.
In an effort to improve its financial performance, Macy's, based in Cincinnati, has been shoring up its results with aggressive cost-cutting, including job cuts, lower capital spending and reduced contributions to employees' retirement funds. Its third-quarter loss narrowed, helped by tight inventory controls and a move to localize merchandise at its department stores by region.
The new outlet stores will offer a range of apparel and accessories for men, women and children - a mix of Bloomingdale's regular stores clearance items and items intended to be sold only at the outlet stores.
The outlets will be located at the Dolphin Mall in Miami; Sawgrass Mills in Sunrise, Fla.; Bergen Town Center in Paramus, N.J., and Potomac Mills in Woodbridge, Va.
More outlet locations are expected to open in 2011.
Macy's shares fell 28 cents, or 1.7 percent, to $16.16 in morning trading Thursday.
macy's, bloomingdales, business/finance
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