Other retailers follow suit:
Malls can’t keep up: A major reason for the shift into neighborhoods is the fact that malls, once a focal point of the American shopping experience, have been in decline for years. Even outlet discounts aren’t enough to tempt consumers as high gas prices keep shoppers close to home.
The advantages of localization: For a retailer like Macy’s, reframing itself as a neighborhood shop could help it reach an entirely new audience and deepen community ties.
On the other hand: While smaller stores are cheaper to scale, they don’t allow department store retailers to offer the full range of merchandise and brand selection that shoppers have come to associate with their brand. The lack of available inventory could frustrate consumers and lead to a poorer customer experience.
The big takeaway: Expanding their use of smaller-format stores enables Macy’s, Nordstrom, and other retailers to improve the omnichannel shopping experience and speed up last-mile fulfillment.