Macy’s is offering its shoppers alternative stores with lower prices.

Similar to Nordstrom’s “Off the Rack”, and Sak’s “Off Fifth”, they will have their own version of an “off-price” outlet business. The new store will be called “Macy’s Backstage”.

As of February, TJX, the parent company of T.J. Maxx, Home Goods and Marshalls, reported annual sales that exceeded Macy’s, making them even more of a competition to the high-end department store.

The announcement was made a few months ago, but more details have been released as the grand opening draws near.

The exterior of a Macy’s department store in downtown Cincinnati. (Photo credit: Wikipedia)

Macy’s Chief Innovation and Business Development Officer Peter Sachse said, “We believe we can deliver a whole new level of value to customers who appreciate fashion and love to hunt for a bargain.”

 

Macy’s Backstage was created to keep up with the on-going trend of shoppers looking for discounts on their favorite high-end brands.

These stores will open in the fall, and as of now there will only be four locations. These stores will all be located in different areas of New York. More specifically, Brooklyn, Queens, New Hyde Park, Melville Mall in Huntington.

“Macy’s Backstage stores will be designed to surprise and delight customers with continuously updated and fresh merchandise assortments focused on delivering current fashion with incredible prices, day-in and day-out, and enthusiastic sales associates,” said Sachse.

At each of these locations Macy’s intends to hire around 30 sales associates to give a pleasant experience along with the new low prices they will be offering.

The stores will stand at 30 thousand square feet and will sell things at a large discount ranging from 20-80 percent off their original price tag. This is a drastic change from its normal business model and store set up.

In a press release, it was said that Macy’s Backstage will be offering, “a compelling assortment of women’s, men’s and children’s apparel, shoes, fashion accessories, housewares, home textiles, intimate apparel and jewelry.”

Other luxuries shoppers can expect free wifi connectivity, large fitting rooms and an unspecified store will be have a café like set up, to test and see how it adds value.

While they will be offering discounts, they will also have special buys from brands that are well known and have worked with Macy’s before.

Macy’s is responsible for over 800 stores in 45 of the states, and a few different countries. This isn’t the first time the company has created an off-site store to sell their products at a discount. They also operate Bloomingdales, which has a discount store Bloomingdale’s Outlet. Macy’s also has a makeup and skin care line at Bluemercury.com.

English: Macy’s Department Store in New York City. (Photo credit: Wikipedia)

The store has continued to see success, with its fiscal sales of 2014 being at $28.1 billion.

Macy’s intends to see how the four locations provided work out, and with their success will come other locations for customers.

Sachse said, “As with all Macy’s innovations, we will test and learn to see what resonates most with customers so we can adjust before rolling out additional locations.”

The company intends to use the locations as pilot testers to determine what will work and what won’t.

Things won’t be exactly the same as with Macy’s stores though. Macy’s Backstage will not accept Macy’s coupons, nor will it have events promoting certain products, as Macy’s and its other stores tend to do. However, they will be accepting Macy’s credit cards.

This new store didn’t come without a challenge.

According to Washingtonpost.com, Chief Executive Terry Lundgren said in April, “I was the obstacle. Because I said ‘You know what? Macy’s price points are too close to the off-price world.”

Despite this, everyone on the Macy’s board seems to be ready to take this new challenge head-on.

“It will be an exciting shopping experience supported with compelling marketing, both traditional and mobile,” said Sasche.