Inspired by Macy’s, Century 21, the department store chain celebrated for its deeply discounted designer clothing, is staging a comeback following its closure in 2020. With a renewed strategy, it is embracing a more streamlined approach to retail as it strives to reclaim its prominent position in the market.
Dubbed “Century 21 Light” by The Wall Street Journal (WSJ), the flagship is located near the World Trade Center in lower Manhattan and is set to reopen its doors on Tuesday (May 16) and will prioritize midtier and high-end designer apparel while intentionally excluding budget items that can be easily found at other off-price retailers.
As part of its new strategy, the retailer has decided to eliminate certain product categories such as home décor and full-price makeup counters. By doing so, it aims to streamline its offerings and place a greater emphasis on offering a meticulously curated selection of highly coveted designer clothing.
Raymond Gindi, co-owner of Century 21, said in an interview with the WSJ that the company is going back to its origins. With his family having established the business 62 years ago, Gindi emphasized that this streamlined approach is in harmony with the original vision and caters to customer preferences.
Initially, Century 21 gained fame for its extensive collection of designer brands for men and women, reminiscent of prestigious retailers such as Bergdorf Goodman and Saks Fifth Avenue. However, what set Century 21 apart was its ability to offer high-quality fashions at substantially lower prices, appealing to fashion-forward shoppers who sought exceptional deals. The store’s popularity extended to both tourists and locals, with its appearances on HBO’s “Sex & the City” and visits from celebrities like Kim Kardashian, who were captivated by the store’s offerings and were even photographed shopping there.
However, in 2020, Century 21 filed for Chapter 11 bankruptcy protection, resulting in the closure of its 13 stores in New York, New Jersey, Pennsylvania and Florida. The department store chain faced financial challenges primarily caused by a significant decline in sales during the pandemic and a dispute with its insurance providers.
After filing for Chapter 11, the Gindi family purchased the Century 21 brand and intellectual property in November 2020 with the intention of reopening.
See also: Century 21 Stores Files For Chapter 11 Bankruptcy
The days of a chaotic shopping experience with communal dressing rooms are long gone. In its place, customers will now find a brighter and more convenient store layout. Cash registers have been positioned near the escalators for easy accessibility to shoppers. The fitting rooms have undergone a revamp and now boast a slight expansion, enhancing the overall shopping experience.
While the store will occupy only half of its former space, the revamped location will span four floors and a 100,000 square feet. It will employ about 500 people, including corporate staff members.
Although the family does not have plans to open additional locations, they have not ruled out the possibility.
In a strategic move, the Gindi family has joined forces with Legends, a company specializing in the management of retail, food and beverage operations at venues such as Yankee Stadium. Through this partnership, Legends will take charge of overseeing the operations and providing related services for Century 21.
Simultaneously, Century 21 is developing its eCommerce site and anticipates its launch within two or three months. Based on customer surveys and thorough market research, Century 21 identified that services like in-store pickup for online purchases did not hold a high priority among their existing and potential customers.
Macy’s has introduced two compact store formats: Bloomie’s and Market by Macy’s. These stores occupy about one-fifth of the space of conventional Macy’s and Bloomingdale’s locations.
At Bloomie’s, shoppers can leisurely browse clothing racks while sipping a glass of wine. The store goes beyond fashion, showcasing a section for pet accessories and even providing a water bowl for furry companions.
To date, Macy’s has successfully introduced 10 compact versions of its Macy’s and Bloomingdale’s stores in strip shopping centers. Encouraged by this positive response, the company has plans to open an additional five mini-stores within this fiscal year.
Market by Macy’s stores provide a curated selection of products, with a primary focus on apparel, shoes, handbags and beauty items from brands like Calvin Klein, Michael Kors, Ralph Lauren and Macy’s own private label, including the popular women’s clothing line INC. These stores also feature a small toy section, made possible through Macy’s collaboration with Toys R Us.
Going beyond retail, Market by Macy’s stores host special events and showcase local businesses, fostering a sense of community engagement. According to reports, Macy’s has been utilizing technology to enhance its inventory management and store layouts. By analyzing heat maps of customer traffic patterns, Macy’s gains insights into product performance and adjusts its offerings accordingly.
See also: Macy’s Expands to Strip Malls With Smaller Stores and Leaner Inventory
Bloomie’s stores, as highlighted by Charles Anderson, director of atores at Bloomingdale’s, exhibit brands like Williams-Sonoma, Sephora and Lululemon. Patrons can shop for Theory, Ramy Brook, AllSaints and Bloomingdale’s own Aqua brand. A concierge desk is available for tailoring, personal styling and assistance with online orders and returns.
Bloomie’s is viewed by Bloomingdale’s as a chance to extend its brand into untapped regions. As of late January, Bloomingdale’s had a total of 55 locations, encompassing outlets and the two Bloomie’s stores. The majority of its stores are in metropolitan areas along the coastlines.
The resurgence of Century 21 and the introduction of small store formats by Macy’s exemplify the ever-evolving nature of the retail industry, where brands continually adjust to shifting consumer preferences and seek to deliver distinctive shopping experiences.
These developments mirror the prevailing trends observed in the fourth quarter of 2022, when there was a effort to reduce excess inventory. By embracing a strategy of downsizing physical space and inventory, both retailers are able to maintain a constant supply of new merchandise while fostering more personalized and intimate shopping experiences for their customers.
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