As Macy's and Sephora Flee the Mall, Will Other Retailers Follow?
Department store Macy's (NYSE: M) is struggling, while business is booming at LVMH's (OTC: LVMHF) Sephora makeup chain. And yet, the two retailers are making a similar move. In a recent announcement about store closures and job cuts, Macy's said it will open smaller stores outside of malls. Sephora, in a statement on the very same day, spoke of its biggest single-year North American expansion ever -- happening outside of malls.
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Macy's has faced declining sales as shoppers spend less time at the malls and more time online. As a result, Macy's shares have suffered, falling 43% last year. Competition also comes in the form of off-price retailers as well as new ways to shop, such as at online resale shops like The RealReal or online services that tailor clothing purchases to the shopper, such as Stitch Fix. Along with other measures to combat lagging sales and bring shoppers back, Macy's is testing a new store format. And this is where the "outside the mall" part comes in. Market by Macy's is a smaller-than-usual Macy's store, located in "off mall" locations. In addition to apparel and other items, the stores will include local food and beverages. The first such store opened last week in Dallas.
Source Fool.com
