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Macy's Inc's Bloomingdale's Getting Into Outlet Business

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; [email protected];

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