Macy’s reported a 2.7% year over year increase in sales for November and December. This was in line with their projected 2-3% sales increase prediction. “We feel very good about our performance in the November/December period as we reversed trend from a soft third quarter and set the stage for continued progress going forward,” Terry J. Lundgren, Macy’s chairman and CEO, said.
That continued progress includes the announcement of major changes at Macy’s for 2015. These changes include a restructuring of merchandising and marketing functions at both Macy’s and Bloomingdale’s, focusing on the company’s omnichannel approach as well as a series of adjustments to its field and store operations to increase productivity and efficiency that include closing 14 of its 790 stores and some related layoffs. Macy’s also announced opening two new locations and reconfirmed plans for seven others.
The company will change its merchandising-related functions in local districts to improve the ability to localize assortments by size, color, fabric weight, style, fit, category and brand. Among the changes, the company is eliminating positions known as “district planners” and reinvesting in new regional teams devoted to specific themes of merchandise localization. Plans call for these teams to intensify Macy’s 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 contends its field team will continue to represent a significant competitive advantage in reacting quickly to changes in customer demand.
Macy’s will expand its existing fulfillment center network in Arizona, California, Connecticut, Tennessee and West Virginia with a new 1.3 million square foot fulfillment center opening this year in Tulsa.
“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,” Lundgren said. “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.”
Source: Retailing Today
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