Macy’s One Below

Macy’s wants to be more than a place where your grandparents might shop Thomas Hawk, Creative Commons (2004) ©

Macy’s wants to be more than a place where your grandparents might shop
Thomas Hawk, Creative Commons (2004) ©

Macy’s One Below: bringing Gen Y back to the racks

As older Gen Yers achieve stability in their personal lives and careers, they’re finally reaching their peak consumption years. Facing stiff competition from online retailers and fast fashion giants, Macy’s is hoping to bring these shoppers back to the racks with new concept store One Below.

 

Key facts:

Scope
Entering their peak consumption years, Gen Y are drawing huge interest from retailers. Representing 27.5% of the US population, they spend $600 billion a year on retail purchases. [1][2] Facing stiff competition from online retailers, big box stores, and fast fashion giants, department store Macy’s is hoping to bring young shoppers back to the racks with new concept store One Below.

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As older Gen Yers enter their 30s and achieve relative stability in their personal lives and careers, they’re reaching their peak shopping years; by 2020, they’ll account for nearly $1.4 trillion in spending power. [2] Although much has been said about this debt-laden, price-conscious generation, Macy’s is hoping that their new-found buying power will help reinvigorate interest in the department store chain.

Launched in 2015, New York-based One Below is part of Macy’s $400 million renovation project that seeks to overhaul the company’s retail strategy. Located in the basement of its Herald Square store, the space is home to an interactive Instagram selfie wall, 3D printer, custom jeans laser etcher, and a dedicated blow out bar. “Millennials are one of the fast-growing segments and allow retailers to experiment with new in-store and online concepts,” says Elina Kazan, VP of media relations and cause marketing at Macy’s. “They are tech- and style-savvy customers who love to snap and share what they have found in-store.” [3]

Macy’s has found a rather creative partner for this venture – online crafts marketplace Etsy. Gen Yers are big fans of the platform, listing it as one of their top online stores. [4] The Etsy Shop, located in the One Below space, will offer a rotating collection of hand-made goods – including homeware, jewellery and stationery – to bolster Macy’s offerings outside of apparel. Marc Mastronardi, general merchandise manager of accessories/Center Core at Macy’s, suggests that it’s not just an exciting opportunity for sellers, but also for customers searching for one-of-a-kind goods, “For designers to showcase their products to a locally and globally diverse customer base in the exciting selling environment of Herald Square is an incredible opportunity for both wholesalers and customers,” he says. [5]  More at Canvas8