Mall of America will soon have another off-price concept for shoppers, but it won't fill empty space.
Macy's Backstage, the department store's nod to an outlet, will open inside its Mall of America location next Saturday.
It will be the Twin Cities' second Backstage, with the first opening in March in Maplewood Mall. That one takes up 18,500 square feet on the first floor of the department store. The new Backstage will take up 11,600 square feet on the third floor of Macy's where bedding and bath accessories used to be, just two doors down from Nordstrom Rack. Macy's also opened a Backstage in the Apache Mall in Rochester two months ago.
"Mall of America, like all of our Backstage stores, was chosen based on the location, what surrounds the location, customer mix and local buying habits," said Macy's spokeswoman Emily Workman.
Referred to by Macy's as an off-price concept or outlet, the merchandise in Backstage isn't from the department store's already marked down clearance merchandise. The department has its own buyers and everything is purchased exclusively for Backstage. Most of the brands and items are not sold in other Macy's departments.
Retailers discovered long ago that they can make more profit by making "special purchases" with "compare at" pricing. For example, a shirt priced at $30 might be marked "compare at $58" even though it may never have been on the shelf at the higher price. About 85 percent of the merchandise at a Nordstrom Rack is made specifically for the outlet.
Prices on Backstage merchandise are typically marked at a 50 percent discount from the "compare at," or manufacturer's suggested retail price. Besides apparel for women (including sizes 1X-3X), men and children, merchandise includes toys, kids shoes, gourmet packaged foods, pet accessories and small electronics. New merchandise comes in daily, including fast fashion.
The new department will not take away the popular Last Act clearance sections in apparel, accessories and shoes. The department has its own dressing rooms and cashier station. The bedding and bath department has been downsized a bit, but moved closer to the entrance.
