Until recently, Bloomingdale’s (owned and operated by Macy’s Inc.) only operated upscale stores. But today, it is becoming more and more engaged in the discount segment of retailing with its Bloomingdale’s: The Outlet Store, as it seeks to (1) lure additional consumers attracted to the Bloomingdale’s name while (2) still maintaining the aura of its traditional stores.
Here is a good analysis by Laura Heller for FierceRetail of Bloomingdale’s strategy:
“Off-price and discount outlets from department stores are growing at a rapid clip in an effort to capture a younger shopper. Bloomingdale’s now operates 16 such stores and Macy’s is betting on its new Backstage off-price format.”
“Bloomingdale’s just opened its most fashion-forward outlet store in New York City with a number of unique features tailored to a younger, more contemporary shopper, including on-site tailoring services. The three-level, 25,000 sq. ft. store is on the West Side.”
“There’s an emphasis on contemporary brands with 60 to 70 percent of merchandise from opportunistic buys from vendors; 20 percent is clearance from Bloomingdale’s regular stores, and 10 to 20 percent is made for the outlets, WWD reported. It’s the first outlet to sell cosmetics, and there will be a yogurt bar on the second level, operated by 40 Carrots, a concept expanding within Bloomingdale’s stores and outlets.”