Macy's tests smaller stores

Macy's is reducing retail space at some of its US department stores, cutting the amount of merchandise and employees at slower-performing units. Macy's will be walling off entire sections at some locations and leaving the space empty. The smaller-store footprint, an experiment now under way at four locations, is intended to save money on staffing and inventory, while improving the chain's sometimes lacklustre shopping experience. "People don't have to walk through 200,000 sq ft to find what they're looking for," said chief executive Jeff Gennette. "If we were building stores today, we'd build them smaller," he added. The Macy's locations being converted into what Gennette called "neighbourhood stores" will shrink in size by as much as a fifth. They will have fewer employees and a leaner selection. The pitch to shoppers: more self-service options — shoe departments display boxes of various sizes — and a convenient place to pick up or return online purchases.
