Bloomie’s Getting Into Outlet Store Biz
Macy’s Inc. announced
Bloomingdale’s is following Nordstrom and a host of other competitors into
the outlet business with plans to open four stores in the summer or fall
of this year.
The first upscale
outlet stores, which will run roughly 25,000 square feet each, will open
in Bergen Town Center in Paramus, NJ; Dolphin Mall in Miami; Potomac Mills
in Woodbridge, VA; and Sawgrass Mills in Sunrise, FL. The chain expects
to roll out further outlets in 2011.
Outlet stores are an opportunity to expand our presence in new and existing
markets, as well as to remove clearance from full-line Bloomingdale’s stores
in a timely manner,” said Michael Gould, chairman and chief executive officer
of Bloomingdale’s, in a press release. “The customer experience in these
stores will reflect the Bloomingdale’s brand with a strong value message.”
new outlets will sell a range of apparel and accessories reflective of
what the chain offers in its department stores.
The company has
hired Arnold Orlick, the former president of Federated Department Stores’
(later Macy’s) Rich’s/Lazarus/Goldsmith’s division in Atlanta, to run the
outlet store business.
Macy’s Inc. is
not alone in pursuing an outlet store strategy. Nordstrom has been growing
its Rack business and many others are opening outlet locations, as well.
are just seeing a tremendous interest from brands, retailers and developers,"
Lisa Quier Wagner, president of Quier Target Marketing Inc., told Retail
"I’ve been in the industry 21 years, and I’ve never seen an interest in outlets
as acute as it is now."
Success, said Ms. Quier Wagner, “is all
about the brand. The consumer is attracted to the brand and the discount, but
the brand first. The multi-brand and discount stores don’t fare as well because
the consumers look at the store and they don’t understand what it’s selling."
Questions: What are your thoughts on the rush by a growing number of retailers
to open outlet stores? What will Bloomingdale’s need to do to succeed in its
outlet store venture?
- Macy’s, Inc.
to Open Bloomingdale’s Outlet Stores – Macy’s, Inc./Business Wire
- Macy’s to open 4 Bloomingdale’s outlets this year – Reuters
- Swayed by Changing Consumer Patterns, More
Retailers Eye Outlets – Retail Traffic
- Nordstrom eyes second discount store in Midtown
– New York Post