Listen to this article

Macy’s is bringing its smaller format store concept to New Jersey, with plans to open two outposts next year in vacant Bed Bath & Beyond locations.

The department store chain recently signed on to lease a 30,200-square-foot space at Centerton Square in Mount Laurel and a 25,000-square-foot space at Interstate Shopping Center in Ramsey, according to Welco Realty Inc., the firm that helped broker the deals.

In Mount Laurel, Macy’s will join other major anchors such as Wegman’s, Target, Costco, TJMaxx and DSW, while in Ramsey its neighboring tenants include ShopRite, DSW, Burlington, Michael’s and Old Navy.

Jerry Welkis, president of New Rochelle, N.Y.-based Welco, commented, “We are very excited about bringing the Macy’s brand to both shopping centers and the Mt. Laurel and the Ramsey community.”

While the chain is best known for anchoring indoor shopping malls – including most of its two dozen stores in New Jersey – Macy’s has been testing a small format concept in high-traffic shopping centers.

After introducing it in Texas as a pilot three years ago, Macy’s has added locations to new markets, including Chicago, Atlanta, Boston, San Diego and Las Vegas, with 15 small-format stores across the U.S. By 2025, the company plans to open up to 30 new small-format locations.

Roughly one-fifth the size of a full-line store, Macy’s small-format locations aim to provide an immersive shopping experience — offering a curated and localized selection of Macy’s private and market brands, as well as an easy checkout experience and top-notch customer service.

“We are excited to accelerate the expansion of our small-format strategy as we continue to innovate and reposition our store portfolio to better serve our customers,” Adrian Mitchell, chief operating officer and chief financial officer for Macy’s Inc., said in a statement. “Our small-format stores are efficient to operate, provide the customer with a shopping alternative within our omnichannel ecosystem and present a unique opportunity to target high-traffic shopping centers. Our small-format strategy is one way we intend to harness the full power of the Macy’s brand to deliver sustainable, profitable sales growth for Macy’s, Inc. beginning in 2024.”

After filing for bankruptcy in April, Bed Bath & Beyond put its 360 namesake stores on the auction block as part of the proceedings. Because Bed Bath & Beyond tended to occupy prime, visible units at destination retail properties, industry experts anticipated the locations would generate strong interest from national, regional and local players, particularly off-price retailers, dollar stores, discounters and other growing chains.

South Jersey-based Burlington was among the retailers to scoop up former Bed Bath & Beyond sites at auction, spending $13.5 million to secure the leases of 50 locations.