IndependentsMay 09, 2025
Lugano Diamonds CEO Resigns Amid Internal InvestigationMoti Ferder stepped down Wednesday and will not receive any severance pay, parent company Compass Diversified said.
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
CollectionsMay 09, 2025
Pieces of the Week: Marie Lichtenberg’s Collaborations for Mother’s DayLichtenberg partnered with luxury platform Mytheresa on two designs honoring the connection between mothers and daughters.
SourcingMay 09, 2025
Gemfields Resumes Emerald Mining in ZambiaThe miner announced plans to recommence open-pit mining at Kagem.
Brought to you by
Las Vegas Antique Jewelry & Watch Show: Showcasing the Most Collectible Merchandise from Across the GlobeGain access to the most exclusive and coveted antique pieces from trusted dealers during Las Vegas Jewelry Week.
CrimeMay 08, 2025
Former NYC Jewelry Store Employee Arrested in 2017 Choking Death of Boss Michel Desalles allegedly murdered Omid Gholian inside World of Gold N Diamond using zip ties and then fled the country.
Weekly QuizMay 08, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
EditorsMay 08, 2025
5 ‘Superfine’ Met Gala Jewelry MomentsAssociate Editor Lauren McLemore shares her favorite looks from a night of style inspired by Black dandyism.
Supplier BulletinMay 08, 2025
Instappraise Introduces Game-Changing Trifold Appraisal FormatSponsored by Instappraise
Brought to you by
Watch: The Winston Red: GIA Examines the Smithsonian’s Newest AdditionSupplier Spotlight Sponsored by GIA
FinancialsMay 08, 2025
Brilliant Earth Notes an Uptick in Engagement Ring Sales in Q1CEO Beth Gerstein discussed the company’s bridal bestsellers, the potential impact of tariffs, and the rising price of gold.
IndependentsMay 08, 2025
Margot McKinney Lands in the U.S. With New BoutiqueThe brand’s first independent location outside of Australia has opened in Beverly Hills, California.
IndependentsMay 08, 2025
Verragio Announces New Regional Sales ManagerCathy Marsh will lead the jewelry company’s efforts in the upper Midwest and western United States.
FinancialsMay 07, 2025
Pandora Posts Strong Q1, Plans for TariffsThe company has multiple strategies for dealing with tariffs, though its CEO said moving manufacturing to the U.S. is not one of them.
ColumnistsMay 07, 2025
The Smart Lab: Building a Seasonal Marketing Strategy for Mother’s Day and BeyondConnecting with your customers throughout the year is key to a successful holiday marketing push.
SourcingMay 07, 2025
Gemfields Says Emerald Sales Improved in Latest AuctionIts commercial-quality emerald sale held last month totaled more than $16 million, up from about $11 million in September 2024.
TechnologyMay 07, 2025
Punchmark’s Latest Podcast Features a Very Special Guest National Jeweler Editor-in-Chief Michelle Graff joined Michael Burpoe to talk tariffs, consumer confidence, and the sky-high price of gold.
AuctionsMay 06, 2025
Harwell Godfrey Reimagines 10-Carat Blue Diamond for Met Gala-Ready BroochDesigner Lauren Harwell Godfrey made the piece as an homage to the 2025 gala’s theme, “Superfine: Tailoring Black Style.”
Events & AwardsMay 06, 2025
Here’s Who Made Jewelers of America’s New ‘20 Under 40’ ListExpanded this year to include suppliers, JA’s 2025 list honors 40 up-and-coming professionals in the jewelry industry.
IndependentsMay 06, 2025
Sissy's Log Cabin Opens New StoreLocated in Fort Smith, it’s the Mid-South jeweler’s first store in Northwest Arkansas.
IndependentsMay 06, 2025
Gunderson’s Jewelers to Be Featured on ‘World’s Greatest’ TV SeriesThe episode about the family-owned jeweler will premiere May 17.
IndependentsMay 05, 2025
Zadok Jewelers Opens Store in AustinThe Houston-based jeweler’s new 11,000-square-foot showroom will include a Rolex boutique.
AuctionsMay 05, 2025
Nancy Astor’s Cartier Tiara Heads to AuctionThe turquoise and diamond tiara hasn’t been on the market since it was purchased by Lord Astor in 1930.
SourcingMay 05, 2025
Crater of Diamonds Yields 4-Carat Brown Diamond“The Duke Diamond” is the largest diamond registered at the Arkansas park so far this year.
TrendsMay 02, 2025
Ring Concierge, Kraft Partner on Mother’s Day Macaroni Necklace The childhood craft of making dried pasta necklaces for Mother’s Day is all grown up as the 14-karat gold “Forever Macaroni” necklace.
CollectionsMay 02, 2025
Piece of the Week: Angely Martinez’s Emerald Promise RingSet with May’s birthstone and featuring an earthworm, this ring is a perfect celebration of spring.
SourcingMay 01, 2025
Tariffs & Colored Gemstones: Relying on Stock, Considering the Ripple EffectThough currently paused, high tariffs threaten many countries where gemstones are mined. Dealers are taking measures now to prepare.
TrendsMay 01, 2025
Amanda’s Style File: 20 Pieces of Emerald Jewelry for MayMay babies are lucky indeed, born in a month awash with fresh colors and celebrated with one of the most coveted colored gemstones.
MajorsMay 01, 2025
Jewelers of America Opens Applications for 2025 ScholarshipsThe deadline to apply for the Seymour & Evelyn Holtzman Bench Scholarship is June 12.
