Facing sluggish sales, Macy’s has signed a deal to open an Apple store at its New York City flagship, President Jeff Gennette announced last week. Together with the company’s ongoing strategy of closing unprofitable stores, the addition could help the struggling retailer draw customers back to brick-and-mortar.
While Macy’s achieves a Genius rank in L2’s Digital IQ Index: Department Stores thanks to comprehensive investments in digital, sales have slumped amid the rise of e-commerce and fast fashion. Its image has also declined, motivating fashion brands like Michael Kors and Coach to pull their products from its shelves.
Meanwhile, Apple is one of a handful of brands excelling at brick-and-mortar. Consumers visit the company’s stores for the experience, in the same way that shoppers once flocked to department stores. An Apple store can boost a mall’s sales by as much as 13%.
Macy’s previously partnered with Best Buy to boost foot traffic, and Gennette suggested that the retailer might also bring in additional Starbucks cafes. As the first department store to harbor an Apple store, the brand could continue that momentum and gain back some of its lost cachet.
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