What: Backstage launches on the 8th floor of Macy’s Herald Square, furthering the footprint of Macy’s burgeoning off-price format.

Why it is important: Backstage is growing rapidly. From April through June this year, Macy’s is bringing Backstage off-price departments to 37 of its department stores, so by the end of June, Backstage will be inside 300 Macy’s stores across the country. Last year, Macy’s brought Backstage into 45 of its department stores.

In Herald Square, Backstage has taken more than 15,000 square feet of space on the eighth floor. It feels like a store within a store, with its own entranceway; distinct blue and white signage and myriad T-stands on wheels for flexibility with the merchandising and display.

The off-price sector is among the most consistently profitable in retail, and actually growing in appeal in light of soaring inflation and consumers being desperate to save money by bargain hunting. Backstage is part of Macy’s efforts to diversify its brick-and-mortar portfolio, from being mall-based with large department stores to also having a significant off-mall presence by layering in smaller, specialized formats such as Market by Macy’s, Bloomingdale’s The Outlet and Bloomie’s.

Backstage departments range in size anywhere from 11,000 to 18,000 square feet. Eighteen percent of those visiting Backstage also visit the full-line departments at Macy’s, and spend 29% more.

Macy’s Backstage opens at NYC Herald Square flagship