Macy's in Rochester adds Backstage discount store - KTTC Rochester, Austin, Mason City News, Weather and Sports

Macy's in Rochester adds Backstage discount store

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ROCHESTER, Minn. (KTTC) -

Today’s shoppers are not frequenting traditional retail stores but shifting to e-commerce retailers such as Amazon.

As consumers shift shopping habits, legacy stores are struggling to survive.

Some retail analysts say a quarter of shopping centers in the U-S face closure in the next five years. On top of that, more than 3,200 hundred department stores closed in 2017. In an effort to remain competitive and relevant in a difficult retail environment some chains are deploying new strategies.

"Their business model has to change because they're not probably seeing the sales they once did," said Bucky Beeman, commercial real estate agent at so I think it can be a draw similar to T.J. Maxx or Nordstrom Rack or Macy's Backstage where it brings in people for that discount, that deal, that people might not be able to find online."

"It's the thrill of the hunt," said Bryon Pavelka, store manager at Macy's in Rochester.

Macy's in Rochester is trying an off-price concept called Backstage with different signage, and a different staff even though it's inside the Macy's store.

"The backstage piece within the store traffic is we want to see that customer come back into a Macy's store. We want her to come in and shop, shop our main box, and our backstage box as well. And really what we've seen in all the stores that have opened a backstage is the main box has seen a lift in sales based upon that extra foot traffic." 

There are already 92 Macy's Backstage across the country.

"Shopping in-store is still a relevant thing. People want to see and feel what they buy," said Pavelka.

Beeman agrees and remains optimistic that malls will evolve and transform itself to emphasize the in-person shopping experience to draw in more consumers.

"I think you're going to continually see these types of stores that are providing some sense of community some sense of experience," said Beeman.

Macy's Backstage grand opening at Apache Mall is Saturday. 

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