What: another department store launching a small format concept

Why it is important: department stores are at a pivotal time where they need to reinvent themselves to cope with the crisis and stay relevant in the future. Many retailers are now betting on smaller and more local store format to reach the local clientele

Bloomingdale’s is reportedly launching a small-store concept which will be called "Bloomie’s," the long-time nickname of the retailer. The 2040sqm store should open near Washington DC in fall 2021, with the goal to support the full-line Bloomingdale’s locations in the area by providing consumers with an alternative destination to shop, make returns or pick up packages ordered online. The Bloomie’s concept is part of parent’s Macy’s Inc three-year "Polaris" strategy which include closing stores to open new off-mall formats. Bloomie’s is likely to carry a limited assortment of some of Bloomingdale’s most successful categories such as women’s fashion, beauty and accessories.

Macy’s last year launch a small format store dubbed Market at Macy’s, with a second location opened earlier this month. This is a community-centric, flexible retail store format with community-driven events.

Seattle-based chain Nordstrom was one of the first to enter that segment when it launched its Nordstrom Local concept in 2017. The Local hubs are much smaller than regular Nordstrom locations and serve as supportive units for the full-line stores. There are no merchandise instore, but it features different services such as custom alterations, online ordering for in-store pick-up and easy drop-off returns.

With the pandemic, retailers, and especially department stores, realised how local retail and communities are important and essential to keep a business running. The theme of local retail was explored in our IADS Exclusive piece: "The rebirth of local retail" and in IADS White Paper: "Global pandemic, local department stores".

Bloomingdale’s Sets Bloomie’s Strategy

Related items:

• IADS Exclusive - The rebirth of local retail
• IADS White Paper: "Global pandemic, local department stores"
• Macy’s opens second "Market" concept
• Nordstrom expands its Local business in California