In the near future, Macy’s stores could turn into discount outlets. CEO Terry Lundgren told CNBC that the brand is planning to put some of the “Backstage” stores in its existing retail locations this year. The stores will sell Macy’s brands at steeply discounted prices — up to 80% off. This model copies highly successful brands like TJ Maxx and Nordstrom Rack.
The traditional department store model is broken.