Macy's launches discount concept

Macy's said Tuesday it is launching an off-price concept, called Macy's Backstage, to help it spur growth.

Starting with four stores opening this fall in Greater New York City, the outlets will offer clearance goods from Macy's stores, as well as special buys from well-recognized fashion brands often between 20 percent to 80 percent off of original and comparable prices for similar merchandise.

The stores will average about 30,000 square feet and offer women's, men's and children's apparel, shoes, fashion accessories, housewares, home textiles, intimate apparel and jewelry. Each store also will include amenities, such as free WiFi and a suite of spacious fitting rooms. One location will test a café concept.

Macy's Backstage business will not be driven by promotional events, and Macy's coupons will not be accepted in the off-price locations.

Macy's executives said early this year it was looking to boost overall sales for the company after focusing on profitability in recent years. Analysts believed an off-price concept similar to a Nordstrom Rack or TJ Maxx was the most promising growth vehicle.

Macy's also recently acquired a spa and beauty goods chain and continues to flirt with the idea of international expansion.

"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, chief innovation and business development officer.

Each Macy's Backstage store is expected to hire a staff of about 30 associates. The pilot store locations are:

• Sheepshead Bay (2027 Emmons Ave.), Brooklyn, NY.

• Queens Place, Elmhurst (Queens), NY.

• Lake Success Shopping Center, New Hyde Park, NY.

• Melville Mall, Huntington, NY.