In a conference call Tuesday, the department store chain talked about opening “off-price” stores to sell returned goods and cancelled orders at a lower price point than normal Macy’s stores, according to Reuters.

Macy’s first hinted at these stores, designed to compete with chains like T.J. Maxx and Nordstrom Rack, last month. Macy’s is boosting its spending by 6% to $1.2 billion to open the discount shops.

The “off-price” retail space has been growing in recent years as shoppers look for designer goods at cheaper prices.