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[software]

Amazon is an easy source of blame for the ongoing wave of store closures happening at bricks-and-mortar chains.

But according to Macy's CFO Karen Hoguet, there's a bigger competitive threat challenging her company's business over time: off-price.

As chains like Macy's and J.C. Penney  remove 100 or more stores from their fleets, TJX , Burlington  and Ross are on the expansion track. Their stores are resonating with shoppers because of their constantly changing inventory, as well as their consistently low prices, Hoguet said at the UBS Consumer & Retail Conference in Boston on Wednesday.

To fight back, Macy's is taking a page out of those chains' books.

"I think you're going to see more of that enter into the Macy's logic," she said.

Macy's has already started rolling out two off-price strategies to help boost its business. The Backstage concept operates as a pure off-price shop akin to Marshalls or T.J. Maxx. Macy's has been building standalone locations for Backstage, as well as dedicating branded sections in its stores for the inventory.

Meanwhile, the department store has tweaked its traditional strategy of marking down clearance goods on the main sales floor, in favor of sectioning off an area meant strictly for these goods. Those sections, called Last Act, have helped Macy's clear through dated inventory quicker and at better prices, Hoguet said.

Despite leaning into some of the strategies that have helped off-price retailers thrive, Hoguet said Macy's stores will always incorporate promotions. That's even as vendors like Michael Kors  opt to sit out of its prolific Friends and Family sales. One example of how the chain could tweak its strategy is by better incorporating its loyalty program on these types of exclusionary purchases, Hoguet said.

"Customers typically don't need most of what we sell, and there is a psychology that loves that promotion," Hoguet said. "Every time we try to say to a customer group, 'What if we didn't have coupons?' The answer is, 'We hate them. But whatever you do, don't take them away.'"

This article is from Yahoo Finance

[hoosieroriginal]

I love my TJ Maxx - it's basically the only place I shop for clothing, household goods, beauty products.  I do like that the  inventory changes all the time.  I haven't stepped foot in a Macy's for over 5 years - and if I can remember at that time, they already had a section for reduced clothing - wasn't impressed - just stuff that everyone else didn't want.  I don't think it will work unless they open a "discount" store. 

[deepwaterdotter]

I've never been to an "off-price" store, will have to check it out.

[Trix]

Macy's store managers had better take better care of the Backstage area of their stores if corporate expects it to succeed.  Not many people have the patience, or time, to shop racks on which the majority of the items are out of place from the size and section to which they belong. By this I mean finding size XS sweaters hung with size 12 dresses, etc.   I got a headache during my first visit to the Macy's Backstage in the Chicago State Street store as it was so disorderly and messy.  However, I did find a lovely Armani X skirt while looking through tees and athletic tops.  I personally never understand a customer not placing something back on the rack where they found it, not doing so seems to be the normal, so it falls upon the store to have a clerk designated to make sure the racks are orderly.  

[bonnielu]

We had two malls.  One closed over 15 years ago.  Nothing has replaced it. City politics, drainage problem, ownership transfer.. who knows.  So all we really have is a long ride to outlet malls or a longer ride to malls in other areas.  Amazon, Walmart and Costco are our only salvation.  

And it seems Amazon has it all with a opportunity to select from a large variety of products.  Walmart and Costco fill in.  We do have great grocery stores so we are not starving.   

[software]

Was hoping QVC could take a cue about the "changing inventory" quote.

I'm so tired of the same old stuff, day after day.

[QVCkitty1]

I would love to shop locally, but there isn't much where I live. Amazon fills a need, and while I feel for the people who have lost their jobs, I don't know what the answer is.

[LTT1]

@software

Amazon has spoiled me because of quick delivery of supplements mostly.

QVC has spoiled me with a liberal return policy.

i have often wondered if one day someone says " I have a GREAT new idea! Why not start a store where people can see the items "in person?" LOL

[software]

Good point!

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@LTT1 wrote:

@software

Amazon has spoiled me because of quick delivery of supplements mostly.

QVC has spoiled me with a liberal return policy.

i have often wondered if one day someone says " I have a GREAT new idea! Why not start a store where people can see the items "in person?" LOL

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[sidsmom]

So sad to see an American iconic retail foundation

being dumbed down to Marshalls & TJ Maxx level. 

....and it all boils down to Macy's CEO quote:

"Customers typically don't need most of what we sell..."

I wish we could recapture the essence of QUALITY vs Quantity, 

but I guess that genie's out of the bottle never to return.

Went once to Marshalls/TJ Maxx to see what all the buzz was about, never to return.  It's like someone vomited old merchandise, no one wanted, onto fancy displays...no rhyme or reason.  Reminds me too much of a Salvation Army/Goodwill...with cleaner floors.  And truth be told, the clothes fished out of Grandma's attic at Goodwill are probably circa 60-70-80's...and better quality!