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Macy’s to Debut Four Off-Price Stores This Fall

Watch out, T.J. Maxx and Marshalls: Macy’s is officially getting into the off-price game. The department store chain declared Tuesday that it’s opening four discount stores in the New York area this fall.

Dubbed Macy’s Backstage, the 30,000-square-foot shops will carry an array of men’s, women’s and children’s apparel, shoes and accessories, as well as home goods, intimate apparel and jewelry, at between 20 to 80 percent off regular prices. Merchandise will comprise a mix of clearance goods from Macy’s 800 department stores and exclusive styles from top brands.

The news follows the company’s announcement in January that it was exploring off-price and outlet stores, following in the footsteps of other department stores that have discount chains: Nordstrom Rack, Neiman Marcus Last Call, Bloomingdale’s The Outlet and Saks Off Fifth.

“We believe we can deliver a whole new level of value to customers who appreciate fashion and love to hunt for a bargain,” said Peter Sachse, Macy’s chief innovation and business development officer, in a press release, noting that the company has spent six months building the concept. “As with all of 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 Backstage pilot stores—located in Sheepshead Bay in Brooklyn, Queens Place in Queens and New Hyde Park and Huntington in Long Island—will not be driven by promotional events and Macy’s coupons will not be accepted. Each store will offer free WiFi and one location will test a café concept.