What: the fourth iteration of Bloomie’s in the US is opening in New Jersey.

Why it is important: While the new format is exciting, how many of them are needed to compensate for the closure of the standard units, and how fast do they need to open?

Macy's Inc. is introducing a fourth Bloomie's store in Shrewsbury, New Jersey, at The Grove shopping plaza in November, as part of its strategy to expand its smaller-format luxury retail presence. Unlike traditional Bloomingdale's locations which exceed 100,000 square feet, Bloomie's outlets range from 20,000 to 50,000 square feet. The new location follows the first in Fairfax, Virginia, opened in 2021, and subsequent openings in Skokie, Illinois, and Seattle. These stores aim to complement existing larger stores and introduce Bloomingdale’s to new markets.

Bloomingdale’s emphasized that the smaller stores enable the brand to adapt its retail experience to modern, convenient locations with highly curated fashion selections tailored for local customers. The expansion aligns with Macy’s broader strategy to enhance luxury sales and customer proximity, according to CEO Tony Spring, with plans to open 15 more Bloomie’s and outlet stores in the next three years.

The move comes amid challenges for department stores in adapting to consumer preferences and competition from off-price retailers. Success in these smaller formats relies heavily on effective merchandising and meeting customer needs—a focus for the architectural firm Nelson Worldwide, which is working on Bloomie’s design to ensure flexibility and responsiveness to trends and regional customer preferences.

Bloomingdale’s to open a fourth Bloomie’s location