CrimeNov 04, 2024
FBI Offering $15K Reward for Info on Halloween Mask-Wearing RobbersThe suspects are said to have been involved in the armed robberies of four jewelry stores across three Midwest states.
MajorsFeb 06, 2020
How Macy’s Plans to Save Itself
The retailer has a five-step plan, including closing 125 stores over the next three years and reducing its headcount by 2,000 employees.
Macy’s store in Herald Square. The retailer announced a turnaround plan, which includes shuttering 125 locations over the next three years.
New York—Macy’s Inc has announced plans to close 125 stores over the next three years and lay off 2,000 employees, as part of its new strategy to promote profitability and growth.
Dubbed “Polaris,” the three-year plan is expected to cost between $450 million to $490 million, most of which will be recorded in 2019.
It is estimated to save the company $1.5 billion and expected to be realized by the end of 2022.
“We will focus our resources on the healthy parts of our business, directly address the unhealthy parts of the business and explore new revenue streams,” said Jeff Gennette, chairman and chief executive officer of Macy’s, in a statement.
Macy’s detailed plan to reinvent itself encompasses store and office closures, a revamped merchandising strategy, an updated loyalty program, and a new store concept.
These are the five steps that may save the retail giant:
Strengthen Customer Relationships
The retailer said it will focus on building lifetime customer relationships via more personalization and an expanded loyalty program.
The next phase of its Star Rewards loyalty program, set to launch later this month, is expected to increase engagement from the occasional shopper and also invite new customers, said Macy’s.
Curate Quality Fashion
Macy’s is rethinking its merchandising strategy as it looks to be “the top destination for the best brands.”
The retailer is shifting its focus to its higher-margin private brands, setting a goal of building four $1 billion brands.
Accelerate Digital Growth
Macy’s will continue to grow its digital business, which it said rakes in more than $6 billion annually in sales, by investing in its website and mobile app.
Its website’s headquarters will relocate from San Francisco to New York City to be closer to its fashion brand partners.
The company will expand its presence in Atlanta, opening an office there and dubbing the city its primary technology hub.
Positions will also be added to its existing facility in Johns Creek, Georgia.
Optimize Store Portfolio
After evaluating its store portfolio, the retailer opted to close 125 stores over the next three years. Those stores account for $1.4 billion in annual sales, said Macy’s.
The company broke down its plan to improve its store portfolio into five additional subcategories: store closures and staffing, growth treatment, off-price expansion, new store format, and supply chain modernization.
For staffing, there will be staff reductions in some stores and increases in others. The company is cutting its workforce by 9 percent, or 2,000 corporate and support function positions.
The retailer is planning to upgrade 100 of its remaining stores, revamping the stores physically as well as updating merchandising strategies, technology, talent, and local marketing.
Macy’s said 150 stores have already been updated and that these stores outperform the others, accounting for 50 percent of 2019 total store sales.
Its off-price offerings will continue to expand, with plans to open 50 Backstage in-store locations and seven free-standing Backstage stores in 2020.
Macy’s described its off-price offerings, which include Backstage and Bloomingdale’s The Outlet, as “a highlight of the company’s performance.”
There’s also a new store format in the works called Market by Macy’s, an off-mall store that’s smaller than the average Macy’s.
The store will offer curated Macy’s merchandise alongside local goods, including food and beverages, as well as a community events calendar.
Macy’s began testing the idea in 2018, launching the service in 13 stores. The first official location will open in Dallas Thursday.
To modernize its supply chain, Macy’s plans to revamp its fulfillment network to boost inventory product productivity.
The retailer’s plan includes working toward increased sell throughs—the rate representing the amount of inventory a retailer receives from a supplier versus what gets sold—and lower markdown rates.
The company will use a new private brand sourcing strategy in an effort to reduce costs and improve speed.
Reset Cost Base
The reduction in employee headcount falls into this category, with plans announced to close offices around the country.
Macy’s offices in San Francisco, downtown Cincinnati and Lorain, Ohio will close.
Its customer contact center in Tempe, Arizona will also shutter, consolidating the operations to its centers in Mason, Ohio, which will increase its employee headcount, and Clearwater, Florida.
More employees will be hired at its Progress Place facility in Springdale, Ohio as well.
New York City will be the company’s sole corporate headquarters.
Changes are also coming to its senior management team.
John Harper, former chief stores officer, will take on the role of chief operations officer, taking on expanded responsibility for stores, technology, supply chain, and brand experience.
Filling Harper’s vacant seat as chief stores officer is Marc Mastronardi, former senior vice president of store operations and customer experience.
Danielle Kirgan, chief human resources officer, will add chief transformation officer to her current role, overseeing the company’s transition.
Looking Ahead
The retailer described 2020 as a “transition year,” expecting negative comps as a result of the business trajectory over the past six months, continued challenges in mall-based stores, and disruption as it implements its turnaround plan.
Net sales are expected to decline as a result of the store closures.
At the end of the plan, fiscal 2022, Macy’s may not be out of the danger zone.
Sales are expected to be within a range of $23.2 billion to $23.9 billion with same-store sales, accounting for owned plus licensed brands, down one percent to flat.
More on Majors
The Latest
CollectionsNov 04, 2024
John Hardy’s New Jewels Turn the Black Sands of Bali into DiamondsThe new designs blend Creative Director Reed Krakoff’s aesthetic with the brand’s Balinese roots.
IndependentsNov 04, 2024
Eiseman Jewels is Celebrating Watches All Month-LongThe Dallas-based jeweler will showcase timepieces from Cartier, IWC Schaffhausen, Jaeger-LeCoultre, Parmigiani Fleurier, and more.
Brought to you by
Navigating Cybersecurity: Essential Guidance for JewelersFrom protecting customer data to safeguarding inventory records, it's crucial to learn how to tackle cybersecurity challenges.
SourcingNov 01, 2024
Reena Ahluwalia Donates Diamond Painting to Benefit CJAThe artwork, titled “Pristine,” was raffled off at the Canadian Jewellers Association’s recent summit.
Weekly QuizOct 31, 2024
This Week’s QuizTest your jewelry news knowledge by answering these questions.
IndependentsNov 01, 2024
Gunderson’s Jewelers Opens New Location in NebraskaThe new store features a custom design studio and a bridal salon.
CollectionsNov 01, 2024
Piece of the Week: Sydney Evan Gets ‘Wicked’Designer Rosanne Karmes has created a collection to coincide with the release of the movie musical, which is expected to be a blockbuster.
Brought to you by
Enhance Your Expertise with IGI’s In-Person Courses in NYCThis fall, sharpen your skills in jewelry grading, quality control and diamond assessment.
FinancialsOct 31, 2024
Charles & Colvard Faces Possible Nasdaq DelistingThe retailer said it will file the necessary paperwork to regain compliance as soon as it is able.
ColumnistsOct 31, 2024
Peter Smith: Nervous Flyers and Emotional SellingWhether you’re calming the jittery gentleman in seat 13B or selling a diamond ring to a hesitant customer, an empathetic approach is best.
Events & AwardsOct 31, 2024
WJA Will Celebrate 4 Award Winners at ‘Future of Forty’ GalaThe gala includes a red carpet, music from DJ Renata, an awards program, and “mystery boxes.”
Events & AwardsOct 31, 2024
The Instore Show Returns To Chicago AreaThe trade show, in its third year, will take place in late September at the Donald E. Stephens Convention Center in Rosemont, Illinois.
Lab-GrownOct 31, 2024
Q&A: Constance Polamalu on Selling Natural and Lab-Grown DiamondsThe jeweler shared her change of heart on lab-grown diamonds and why she keeps them separate from natural diamonds in her business ventures.
Events & AwardsOct 30, 2024
These Designers, Journalists, and Retailers Are Up for a Gem Award The 2025 Gem Awards are scheduled to take place March 14 at Cipriani 42nd Street in New York City.
CollectionsOct 30, 2024
CD Peacock Honors Its Hometown of Chicago in First Bridal Collection“Love and Celebration” is the jeweler’s first in-house collection featuring engagement rings, wedding bands, and celebration rings.
SurveysOct 30, 2024
Consumer Confidence Rebounds in OctoberA more positive view of the labor market contributed to the strongest monthly gain since March 2021.
Events & AwardsOct 30, 2024
Mejuri to Award $50K in Scholarships to Jewelry Design StudentsThe funds will be distributed to schools in the U.S., Canada, and the U.K.
MajorsOct 29, 2024
Cybersecurity Expert Selected as President of Jewelers’ Security AllianceJennifer Mulvihill, the first woman to lead JSA in the organization’s 141-year history, takes over for the retiring John Kennedy.
Events & AwardsOct 29, 2024
The Can’t-Miss Events of 2024 New York City Jewelry WeekThis year’s festivities include more than 100 experiences, such as designer showcases, panel discussions, and even a treasure hunt.
AuctionsOct 29, 2024
Rolex Worn on Apollo 14 Mission Sells for More Than $2MThe GMT-Master “Pepsi” that belonged to astronaut Edgar Mitchell is one of two Apollo-flown Rolex watches ever sold at auction.
MajorsOct 29, 2024
Pandora’s Holiday Campaign, New Jewelry Celebrate Light and LoveThe ads star brand ambassadors Chloe and Halle Bailey and Pamela Anderson.
SourcingOct 29, 2024
De Beers’ Production Drops 25% as Demand Remains SluggishThe company combined two sights in Q3 due to the slowdown in demand, and said it is moving up the dates for sights 9 and 10 in Q4.
EditorsOct 28, 2024
Q&A: Monica Rich Kosann Looks Back on 20 Years The jewelry designer discussed how she got into the jewelry industry, what she keeps in her favorite locket, and the future of her brand.
MajorsOct 28, 2024
Jewelers for Children’s Halloween Costume Contest RocksParticipants can buy five votes for $5 to decide which jeweler will dress up as an ‘80s rockstar for Halloween.
TrendsOct 28, 2024
Amanda’s Spooky Style FileThese 15 pieces of jewelry hand-picked ahead of Halloween appeal to the costume- and candy-loving child in all of us.
MajorsOct 25, 2024
This New Bulgari Boutique Is on a YachtStarboard Luxury is bringing the Italian brand aboard The Ritz-Carlton Yacht Collection’s newest yacht.
CollectionsOct 25, 2024
Piece of the Week: A Haunting Piece of Mourning Jewelry The pendant, circa the late 1700s, likely was commissioned to remember a loved one who died young.
