Stage Stores is moving forward with plans to convert its stores to an off-price format.
According to the company, based on the success of the conversion strategy, the company will begin converting its remaining department stores in February of 2020. It expects to be operating approximately 700 small-market Gordmans off-price stores by the third quarter of next year.
“We are excited about our future as we fully transition to an off-price business model,” said Michael Glazer, the company’s CEO. “Since 2018, we have converted 98 department stores to off-price, including 17 small market conversions in Michigan, Pennsylvania, Ohio, Kentucky and Tennessee.”
He noted that off-price conversions have delivered higher sales with less inventory, similar retail margins and lower SG&A.
“With the success of our recent tests of lower-cost conversions, we are able to execute our fiscal 2020 conversion strategy while maintaining our capital spend in line with fiscal years 2018 and 2019,” Glazer said.