Why Macy’s is moving into strip malls

Annual visits to strip malls were up 18% in 2023 compared to before the pandemic.
October 13, 2024
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strip mall with macy's billboard

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Macy’s is moving out of shopping malls in favor of strip malls.

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The retailer announced last year that it was opening 30 new small-format stores in strip centers. At the same time, Macy’s plans to close ~150 of its namesake locations by early 2027.

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The reason is pretty simple: more consumers are going to strip malls.

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While shopping malls have struggled to retain shoppers, annual visits to strip malls were up 18% in 2023 compared to before the pandemic.

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Shoppers seeking convenience prefer strip malls – the lines are shorter, and parking is more accessible.

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Although Macy’s is still struggling (stock is down ~21% year-to-date), its new small-format stores have outperformed its legacy big-box stores.

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