Macy's Pulls Out All the Stops with $400M Herald Square Revamp
Macy’s is set to revamp their flagship store - Herald Square in New York City
With a whopping $400 million budget, the remodel project will take place over a four year time span beginning in the spring of 2012. Already the world’s largest store, Macy’s Herald Square will be expanding with the addition of 100,000 sq. ft. of selling space coming to a total of 12 million sq. ft.
Taking a new approach after witnessing the steady decline in popularity of department store shopping, Macy’s is determined to broaden it’s appeal. By adding a string of luxury shop-in-shops, as well as integrating new technology, the shopping experience will be as futuristic as it gets. Shoppers will experience the digital age first hand with interactive directories, streaming live videos of Macy’s events, digital product information and a mobile app to guide customers as they shop.
“Macy’s Herald Square is our company’s most productive store, and experience shows that improvements in this location consistently result in higher customer traffic and sales volume,” said Terry J. Lundgren, chairman, president and chief executive officer of Macy’s Inc. “Our upcoming top-to-bottom remodel represents an investment in the future growth of our business as New York City continues to evolve as a world capital and shopping destination.”
With any major development, especially regarding a store as highly trafficked as the Macy’s Herald square, there are many issues and obsticles to consider. With the combination of 20 million shoppers a year from all over the world, it will be difficult to navigate through the construction and near impossible to keep clean.
Among the improvements include new bathrooms and historic wooden escalators, along with the addition of 300 fitting rooms. Macy’s has already planned to involve their many designers and vendors to update or build shops.
The stores current revenue of $850 million is planned to increase to $1 billion upon completion of the project. This expected boost in sales is determined by the growth in space for key categories such as shoes, handbags, cosmetics and fashion brands for millennial-generation customers.
Lundgren said the project is intended to create “a modern, customer-centric shopping experience” to reflect “how a new generation of customers prefers to shop. In many cases, product will be organized by lifestyle to help customers create looks and build wardrobes across categories.” However they are being careful “to preserve and restore the historical integrity of this landmark building….Blending Macy’s architectural legacy with advanced technology and contemporary design is what makes this project so special.”