DOW JONES NEWSWIRES
Macy's Inc. (M) said it will launch a new line of out-of-mall
Bloomingdale's Outlet stores this year, opening the first four this
summer or fall.
"We have been studying the opportunities for entering the
off-the-mall outlet business for some time, and the timing now is
right given the consumer's particular focus on value in addition to
fashion and quality," said Macy's Chairman and Chief Executive
Terry Lundgren.
It also comes as rental rates have slumped at commercial real
estate amid falling occupancy levels. Outlets are also become more
popular for retailers as shoppers get increasingly price-conscious.
Just last week, clothier New York & Co. (NWY) said it will
proceed with an outlet-store strategy.
The initial Bloomingdale's locations, each about 25,000 square
feet in size, will be in Miami, Paramus, N.J., Woodbridge, Va. and
Sunrise, Fla. They will offer "a range of apparel and accessories,"
the company said.
Shares of Macy's rose 1.2% to $16.64 in recent trading.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855;
nathan.becker@dowjones.com;