In that capacity, Rachel Shechtman's responsibilities will include partnering with brands and creating better in-store experiences.
The companies didn't disclose terms of the deal.
Located in New York's Chelsea neighborhood, Story has worked with brands such as Jet.com and Dressbarn to curate rotating shopping experiences. The space features different themes every few months, like "well being" and "made in America." A number of the items sold at Story come from local retailers and artists.
"Bringing Rachel's perspective to the table will help create more enriched and engaging in-store experiences and brand activations," Macy's CEO Jeff Gennette said in a statement. "We are committed to growth in 2018, and this is one important step along the way."
Shechtman said she's excited to help "pursue new business models and brand partnerships" for Macy's. Story will continue to operate "as usual" in New York, she said.
Earlier this year, Macy's rolled out a pop-up marketplace to a handful of locations, something Shechtman will help in her new role. The initiative brings Macy's closer to young brands looking to grow and helps the department store owner fill excess space in stores.
Many retailers today are looking to activate unprofitable square footage, and partnering with outside brands is one way to attract shoppers and differentiate the store's merchandise mix.
"Story represents the future of retail — curation, editorial storytelling, interactive events and displays ... and will help amplify Macy's instagrammable moments and help connect with Millennial shoppers," Cohen & Co. analyst Oliver Chen said in a note to clients.
The partnership should help Macy's further leverage its store fleet, which includes roughly 40 Bloomingdale's locations, he said.
Macy's shares are up about 22 percent this year.