Macy's piloting Omni Service Centers: dark stores that fulfill online orders

Macy's is running a "dark store" test ahead of the holiday season.

• Macy's has turned two stores — in Dover, Delaware, and Littleton, Colorado — into Omni Service Centers focused on fulfillment and order pickup. 

• Macy’s said in a statement said that the test is in response to "an increase in demand across the network to get our customers their product when and how they want it."

• "Dark stores" — or locations dedicated exclusively to processing online orders — are becoming more common in retail. 

The company has turned two of its department stores into Omni Service Centers focused on pickup services and fulfillment, not in-store shopping.

The stores, located in Dover, Delaware, and Littleton, Colorado, allow for in-store pickup, curbside pickup, returns, and bill pay. The primary purpose of the Omni Service Centers, however, is to fulfill online orders.

The Delaware News Journal was first to report on the news of the Omni Service Centers.

A company representative said in a statement that the test is in response to "an increase in demand across the network to get our customers their product when and how they want it."

The representative added that workers at the affected stores "will be considered for potential opportunities to continue with Macy's in new roles at their current location or be placed in open positions at nearby Macy's stores."

They continued: "If the colleague isn't selected to go forward, they may be eligible for severance."

Digital sales grew 53% in the second quarter ending Aug. 1 compared to 2019, growth Macy's said was better than expected as stores reopened during the summer. Macy's Chairman and CEO Jeff Gennette said in September about 30% of those digital sales are fulfilled in brick-and-mortar stores.

Simon Property Group, which owns the Dover Mall, declined a request for comment. 

"The whole business model of a mall, which is about pulling in as many people as you can and getting them to stay for as long as you can, has just unraveled," said Neil Saunders, managing director of consultancy GlobalData Retail.

"Dark stores" — or locations dedicated exclusively to fulfilling online orders — are a growing trend in retail. Whole Foods opened an online-only store in Brooklyn in September, and Kroger recently converted space in two of its grocery stores to serve as kitchens for meal delivery.

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