Can someone post the text from the WWD article? I don't have WWD access. What restructuring's are in the works?
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Looks like SF will be closing at some point based on all the chatter and work currently underway and I'm sure other building locations will also be consolidated.
Would also like to see the text of the article. I agree with the last comment posted. I can tell you staff in the trenches do not feel appreciated or secure ; ie, everyone is disposable or replaceable. There are also a lot of passive aggressive techniques used to bully employees into achieving metrics they deem important. Customers want to come in not feeling pressured to buy or open a credit card . The prior comment refers to what was known as “ theater of retail” in the past when it would be cool and entertaining to come to a store and see what was new and exciting. Nowadays that seems to take place online. However it should carry thru to the physical store and here is where players miss the mark: CONSISTENCY ! What is on your website should be in store for the customer who wants to see it in real life. I also hope senior management is listening. Story is not a new concept; it’s what “ old fashioned “ retail execs used to do every day.
They won’t listen. No money to do anything new. They’re trying to save as much as possible to survive longer. That’s all.
I do not have a degree in Marketing or merchandising, but I do know how people think, and what they gravitate to. These people include both customers and store associates. You can't have one without the other, so they go hand in hand. Happy, associates help make the shopping experience enjoyable for customers, and happy customers keep coming back. Word of mouth helps alot too.
Brock and mortar stores, if they want to survive, must gave customers a unique shopping experience. While quality merchandise at a good price is important: It is not all-important. People need to be made to feel special and unique when they go shopping. Macy's is severely lacking in that area.
Let's start with the first thing customers see and hear when they go into a Macy's store. No one welcomes them to the store and offers personalized help. The store music is terrible. They play the same track of 30 songs or less (on a rotational basis) year-round, except for Christmas, then repeat the same songlist list afterward. Store music must be fresh and alive. There is so much more they can do with it. What's more, store music affects the attitudes of the associates who listen to the same 30 or so songs every single day several times per day.
Create and promote an activities team of store associates to find ways to reach out to and engage the customers.
There is alot that con be done to engage customers: live demos (cosmetics, jewelry, home products), live music and entertainment, etc.
Find a theme, and promote it adopt it for a day or a week: Circus (get a popcorn and cotton candy machine, and give out free popcorn and cotton candy). Have a picnic theme, and serve free hot dogs to the customers. The name of the game is "unique and exciting shopping experience".
Stop investing in stupid pie in the sky ideas like "Story". It is a waste of time and money....my guess is BIG money, since you completely change the theme of the store-in-a-store every few months.
If retail doesn't adapt to the changing times of online shopping, sales numbers at brick and mortar stores will continue to decline.
I hope Macy's senior management is listening.
Anyone know what the severance packages look like?
An additional 100 G stores will be announced Feb 5, making it G250 (Growth 250). The neighborhood stores will be announced as well which will eliminate a lot of jobs since those stores will be pretty much acting as fulfillment warehouses, BOPS, BOSS, and will have all the basic Macys assortments.
They’re only kicking the can until Feb 5th. Then it will be a bloodbath.
May the odds be ever in your favor.
So basically they are kicking the can down the street
WWD article:
Macy’s has restructurings in the works seen impacting a range of operations, from digital to private-label sourcing, buying and stores.
The $25 billion Macy’s Inc. is considering closing its San Francisco dot-com offices and relocating the operation to New York or Georgia, sources said Monday. Macy’s has a technology hub in John’s Creek, Ga., as well as tech offices in Lorain, Ohio and San Francisco. Relocations typically lead to headcount reductions and major cost savings. Macy’s was an early e-commerce adopter, launching macys.com in 1996.
In addition, “They’re stripping the field of many district merchants,” said one source familiar with the operations of Macy’s Inc. “They’re also combining some buying and planning functions at divisional and buyer levels and redoing private-label sourcing to be more by category, less by brand.” The private-label reorganization would lead to a greater emphasis on classifications and less on specific private brands.
“We do not comment on speculation,” said Cheryl Heinonen, senior vice president of corporate communications for Macy’s Inc., in response to the reports. “As we have already communicated with our colleagues, we will be sharing full details of our three-year strategic plan and growth strategies, including any impact to the organization in early February.” A Macy’s investors’ meeting is scheduled for Feb. 5 in New York.
While reports of restructurings have surfaced, Macy’s is said to be still finalizing its plans.
“There will be big savings,” said one source.
It could not be learned how much money Macy’s hopes to save through the changes, or how many employees will be affected.
Last week, Macy’s did confirm 29 store closings — 28 Macy’s and one Bloomingdale’s. The closings, happening in the near future, were a result of the company’s regular annual review of the store fleet. It is believed that many of the stores being shuttered, if not all, are cash-flow positive. However, decisions to close them would be based on mall traffic patterns, central expenses absorbed by the stores and their prospects for future growth. Macy’s, long said to be overstored, operates 645 Macy’s department stores and 35 Bloomingdale’s full-line department stores. In the 2016-17 period, Macy’s closed 100 full-line department stores. In 2015, Macy’s closed 41 stores.
Also last week, a round of layoffs at Bloomingdale’s was confirmed, though the number was not disclosed. One source said approximately 70 positions were eliminated, though another source close to the business said that number was high. Junior executives and digital merchants were among those cut.
Bloomingdale’s timed its layoffs with its move to Long Island City in Queens, N.Y. this month into The Jacx, a massive new 1.2 million-square-foot office development on Jackson Avenue, referred to as a campus. Bloomingdale’s is relocating all of its New York City-based corporate and support colleagues to Long Island City, involving about 1,000 employees. Some top executives will maintain offices at the 59th Street flagship in Manhattan as well as at The Jacx. Macy’s will move some functions as well to The Jacx.
Macy’s has approximately 130,000 employees in total. Last month, Hal Lawton, president of the Macy’s brand, abruptly left after just two years on the job to become chief executive officer of Tractor Supply Inc. Macy’s did not name a successor.
Macy’s is under pressure to show growth and greater profitability and boost its stock. Some activist shareholders have been pushing the company to monetize its real estate and close stores. The company does plan to have a tower built above its Herald Square flagship, which will have minimal impact on the store itself, and is examining other real estate opportunities across the country.
While profits have been unsatisfactory, the company maintains a healthy balance sheet and has been accelerating debt retirement. Macy’s has about $4.7 billion in long-term debt, down from about $5.5 billion a year ago. Financial sources indicate lowering debt could lead to share repurchases, potentially elevating the stock price. The stock closed at $17.88 on Monday, well below its 52-week high of $26.48, though it’s increased a couple of points over the last month.
On the brighter side, Macy’s reported Wednesday that its selling trends improved during the holiday season, though comparable sales were negative, down 0.6 percent for the November-to-December period. The minus 0.6 percent comparable sales includes owned and licensed sales. On an owned basis only, Macy’s comparable sales for the holiday period slipped 0.7 percent. The numbers beat expectations. Macy’s next earnings release will be on Feb. 25, for the fourth quarter and year. For the quarter, the company is expected to report earnings per share of $1.92, down almost 30 percent from the prior-year quarter. Net sales are seen at about $8.2 billion and down under 3 percent from the year-ago period.
In recent years, management has considered the possibility of spinning off the Bloomingdale’s division, but that idea was nixed because a sale wouldn’t be worth it given tax implications and the lack of owned real estate, unlike Macy’s division, which has much valuable real estate including the flagship.