Macy’s announced in January several initiatives tied to stronger underpinnings for its omnichannel efforts. Surprisingly, it also announced possible plans for an off-price division, like TJMaxx or Nordstrom Rack. My comment (at RetailWire) follows:
Brand positioning will be critical to the success of this new venture, because the space is already getting crowded. If Macy’s uses the Bloomingdale’s brand to follow the lead of Off 5th and Rack stores, it has a chance to leverage a well-established brand. On the other hand, attaching the “Macy’s” label to an off-price store may just cannibalize a very promotional business with a huge existing footprint. And I’m not sure the third way—developing a new brand—would be a smart choice at all.