What: Inside Retail reviews the recent strategic moves from Macy’s.

Why it is important: They have carried out a number of initiatives that include new store formats, Market by Macy’s, observed by retailers worldwide

Macy’s is innovating with new strategies, including the roll-out of 30 smaller “mini stores” in US strip centers over the next two years, which have already shown positive sales growth in initial trials. These smaller stores, previously named “Market by Macy’s,” offer a curated selection of products, host local events, and benefit from their proximity to high-traffic retail locations.

Macy’s has also launched a digital fashion platform, Mstylelab, in collaboration with metaverse tech platform Journee, offering users an immersive experience to explore their newest brand, On 34th.

Despite these moves, Macy’s continues to face challenges. Its Q2 sales dropped by 8.4% year-over-year, with both in-store and online sales declining. The broader retail landscape sees many classic department stores, familiar to Baby Boomers and Gen X, either closing or attempting to adapt to younger demographics. An example of an attempt to redefine the modern department store is Showfields, which struggled and filed for bankruptcy despite its innovative approach. Experts are skeptical about Macy's efforts, suggesting that while the shift towards where customers are makes sense, it might be too late for significant impact. The future will determine if Macy’s changes can revive the brand's former glory.

From ministores to metaverse, will Macy’s new moves pay off?