Macy’s has joined the ranks of department opening its arms to more indie brands. “The Market @ Macy’s” pop-up shop-type concept gives space on Macy’s main floor to a handful of brands and companies in 10 locations initially. Participating brands pay a one-time fee for the space and then get to keep all the earnings.
While Macy’s distinguishes The Market from a traditional pop-up shop, its goal is to give customers a unique experience and drive new discoveries and foot traffic. The concept offers brands a turn-key solution for smaller brands (or those without a retail presence at Macy’s or others) without a massive inventory commitment.
“Overwhelmingly, what we think makes this so attractive for Macy’s and our customers is it continues to drive customers to stores by giving a constant break of discovery,” Marc Mastronardi, EVP of new business development and innovation at Macy’s, told CNBC.
Items include everything from bebe handbags to lovepop pop-up cards. Skincare and apparel is also offered.
The initial roll out will land in New York’s Herald Square Flagship plus Boston; Las Vegas; Fort Lauderdale, Fla. Further expansion will be contingent upon the concept’s success. Macy’s currently operates nearly 670 stores, so there is lots of potential to grow the idea.
The Market @ Macy’s is another way for Macy’s to offer elevated experiences and exclusive product to its customers. “For really minimal company investment, we were able to take the capabilities that we already have and package them in a way that is creating a new revenue stream, product discovery and something that is good for the customer,” said Mastronardi.
“For many retailers, pop-ups are quickly becoming a critical part of the store experience reinvention journey,” notes Vicki Cantrell, Retail Transformation Officer at Aptos. “Experimenting with pop-ups enables companies like Macy’s to go on a reinvention journey without making long-term commitments or investments, while also creating new touchpoints and fresh customer experiences. Pop-ups already account for more than $50 billion a year in retail revenue and I anticipate that they’ll continue to grow in importance as retailers try to figure out the best ways to weave technology and experiences into the shopper journey.
As with all experiential retail, pop-ups must remain true to the brand, genuine and consistent, while also creating a memorable experience, to be successful. If Macy’s can strike this balance, then the retailer will find that its new pop-up strategy is one of the myriad ways to re-engage customers time and time again.”