Does the "Market by Macy's" concept need more tweaking to survive?

Macy's continues to execute its strategy of shifting focus from in-mall, larger locations toward smaller, suburban, open-air centers.

Thus far, Macy's has opened over 30 to 35 small-format stores (roughly 30,000–50,000 sq. ft.), with plans to expand this concept. But is this experiment working?

Consider this: Macy’s has already closed five of these newer small format stores in Southlake, Texas; Flower Mound, Texas; Johns Creek, Ga.; WestBend in Fort Worth, Texas and the latest in Ramsey, N.J. The latter is surrounded by The TJX Companies, Inc.’s T.J. Maxx, Burlington Stores, Inc., DSW Designer Shoe Warehouse and Old Navy, all successful retail locations.

The Macy’s small format stores are more like mini versions of the Macy’s full line department stores than the value-oriented treasure-hunt locations operated by TJX, Nordstrom Rack, Ross Stores, Inc. and Burlington. All of them are located in open-air community centers.

Can Macy’s make the "Market by Macy's" concept more appealing to customers?

The Macy’s storefront sign barely had time to leave an imprint on the paint underneath it as the store closed permanently after a relatively brief run of roughly two years at the Interstate Shopping Center in Ramsey, New Jersey. The center is owned by a joint venture between Wafra Inc. and Crossroads Companies.