Macy's Fine-Tunes Store Retailing

Macy's is still attracting in-person shoppers, despite the incredible growth of online and mobile shopping, all competing for the attention of customers. Among the innovations it's using to draw shoppers into stores is its outlet-style retail section, known as Backstage.

In my local Macy's, Backstage occupies an area on the lower level, with its own cashiers and decor. Customers can register for text messages about new products, in-store events, and other Backstage specials. This retail brand has its own Instagram account, Facebook page, and Twitter account.

Backstage is largely stocked with "off-price" merchandise, often new products purchased out of season or as excess inventory. Mostly apparel, but also home goods, brand-name cosmetics, and lots of shoes.

What caught my eye was the above sign in the handbag department, sitting on top of a showcase featuring "previously loved" merchandise. Turns out these are high-end purses that have been repaired and are now marketed at discounted prices compared with the original new-product price.

One strategy Macy's is using to fine-tune its store retailing is "Growth 50." This involves testing a concept in 50 stores, assessing the lessons learned, and applying the most effective ideas to hundreds of other stores. Watch for more innovations and lessons learned as Macy's reinforces customer loyalty in this age of omnichannel retailing.