|Macy’s, Inc. Evolves with Changing Customer Landscape, Invests for Continued Sales Growth|
Merchandising and marketing to be restructured for single
omnichannel view of business;
(Editor’s Note: Macy’s, Inc. this afternoon also issued a separate
news release announcing sales results for the November/
“Our business is rapidly evolving in response to changes in the way customers are shopping across stores, desktops, tablets and smartphones. We must continue to invest in our business to focus on where the customer is headed – to prepare for what’s next,” said Terry J. Lundgren, Macy’s chairman and chief executive officer. “Macy’s, Inc. has benefited in recent years by having invested early and aggressively in our M.O.M. strategies (My Macy’s localization, Omnichannel integration and Magic Selling customer engagement). This has included talent, technology, omnichannel infrastructure and fulfillment capability.
“We remain committed to M.O.M. as our strategic roadmap. We are continuing to learn from our experiences and to mold our business model and M.O.M. strategies around what our customers are telling us and how they are behaving so that we can continue to succeed in this environment. We are moving quickly. In many ways, this is a race to remain best-in-class – and to win with the customer. We fully expect to remain an industry leader and innovator,” Lundgren said.
With changes being announced today, Macy’s, Inc. will be increasing its workforce in some functions and locations while decreasing in others so all of the company’s resources can be deployed for maximum results. In total, the Macy’s, Inc. workforce is expected to remain at a level of approximately 175,000 associates.
Restructuring in Merchandising/Marketing
Both Macy’s and Bloomingdale’s are restructuring their respective central merchandising and marketing functions so each brand can develop and present its assortments seamlessly across channels and provide a single omnichannel view in all product categories. Going forward, one unified merchandising and marketing organization – a hybrid of store and online buying – will support the entire Macy’s business to encourage both store and digital growth. The same is true at Bloomingdale’s. Previously, store and online assortments were bought and marketed by separate organizations at Macy’s and at Bloomingdale’s. These changes support continued growth and an enhanced shopping experience online and via mobile, as well as in stores.
“Going forward, Macy’s and Bloomingdale’s will be better able to move more quickly and nimbly to select merchandise, assort inventories and serve total customer demand, no matter how, when or where the customer shops. Some redundant activity also can be avoided to accelerate speed to market, partner more effectively with vendor resources and ensure the merchandising organizations are more responsive to the marketplace in making and implementing decisions,” Lundgren said.
Simultaneously, Macy’s will make selected changes to its merchandising-related functions in local districts (administrative grouping of Macy’s stores) around the country as it continues to improve its ability to localize assortments by size, color, fabric weight, style, fit, category and brand. The company will discontinue district planner positions and reinvest in new regional teams devoted to specific themes of merchandise localization. These teams will intensify Macy’s successful warm-weather strategies, as well as address topics such as meeting the needs of more traditional customers who live in northern climate zones, and better understand and support the diverse needs of multicultural customers. Macy’s field team will continue to represent a significant competitive advantage in reacting quickly to changes in customer demand and in gaining market share.
These changes in merchandising and marketing are expected to affect
approximately 115 associates in Macy’s and Bloomingdale’s central
Adjustments in Stores/Field
Macy’s and Bloomingdale’s are adjusting certain aspects of store and field operations and refocusing the staffing in each store location to facilitate growth, increase productivity and improve efficiency. Selling service and support is being modified to match business opportunity in each department. An average of two to three associates will be affected in each of Macy’s and Bloomingdale’s approximately 830 stores (out of an average workforce of approximately 150 associates in each store), for a total of about 2,200 affected associates nationwide. The company is working to place as many affected associates as possible in other open positions.
Also, two existing Macy’s stores districts are being merged into nearby districts – thus reducing the ongoing number of stores districts to 58 from the current 60.
Growth Investments Planned for 2015
The company will reinvest savings from merchandising, marketing, store and field initiatives so it can continue to invest for growth as it focuses its resources and molds its business model around emerging customer preferences. Plans for 2015 include:
Macy’s, Inc. today also detailed a series of adjustments to its portfolio of stores across the country.
“Our omnichannel strategy depends on great Macy’s and Bloomingdale’s
stores that not only welcome shoppers through the door and deliver an
outstanding shopping experience, but that also fulfill orders that are
shipped directly to customers around the country. In 2014, about
The company today is announcing two new stores:
Seven other new Macy’s and Bloomingdale’s stores are currently planned and/or under construction, as previously announced.
In addition, new Macy’s and Bloomingdale’s stores are planned to open in
Al Maryah Central in
The company also is announcing today that it will close the following 14
Macy’s stores (out of a current total of about 790 Macy’s stores) in
early spring 2015. Final clearance sales will begin on
Together, the 14 stores being closed account for approximately
The company is committed to treating associates affected by store closings with respect and openness. Associates displaced by store closings may be offered positions in nearby stores where possible. Eligible full-time and part-time associates who are laid off due to the store closing will be offered severance benefits.
Once all of these changes have been implemented, Macy’s, Inc. will
operate about 830 stores in 45 states, the
Changes being announced today are estimated to generate savings of
In conjunction with the implementation of the merchandising and
marketing restructuring and store and field adjustments, as well as
store closings and asset impairment charges, an estimated
Macy’s, Inc., with corporate offices in
All statements in this press release that are not statements of
historical fact are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such statements are
based upon the current beliefs and expectations of Macy’s management and
are subject to significant risks and uncertainties. Actual results could
differ materially from those expressed in or implied by the
forward-looking statements contained in this release because of a
variety of factors, including conditions to, or changes in the timing
of, proposed transactions, prevailing interest rates and non-recurring
charges, competitive pressures from specialty stores, general
merchandise stores, off-price and discount stores, manufacturers’
outlets, the Internet, mail-order catalogs and television shopping and
general consumer spending levels, including the impact of the
availability and level of consumer debt, the effect of weather and other
factors identified in documents filed by the company with the
(Note: additional information on Macy’s, Inc., including past news releases, is available at www.macysinc.com/pressroom)
Source: Macy’s, Inc.