Macy’s announced earlier this week that despite its four consecutive quarters of sales growth in its current retail locations, it plans to cut down on square footage in a number of their stores. As the department store chain sees its consumers shifting more towards online shopping, it has come up with a strategy to better use its brick and mortar shops to complement online shopping offerings and meet consumer needs.

While Macy’s has not shared which stores will shrink in size, it announced that its plan will segment its stores into three varieties. Flagship locations, such as the New York City Herald Square store will continue to exist, yet other locations will focus on smaller “neighborhood stores,” as well as magnet stores, which will carry mainly strategically curated selections in popular shopping locations.

"We're currently testing four different investment models for our neighborhood store that are aimed at increasing shopping ease and convenience, including more self-service options. In 2019, we will test and iterate until we land on the right formula to scale the neighborhood stores in our fleet," chief executive Jeff Gennette told CBS News.

Macy’s will integrate more technology into its brick and mortar stores as well. It has already experimented with tech features such as virtual reality aids in cosmetics and furniture departments to help shoppers envision how products look on their faces or in their homes. The retailer’s current collaboration with Facebook is another example of its blend of digital with physical retail. Facebook has opened nine pop up stores in various Macy’s locations to bring digitally native brands into the brick and mortar space.





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