For Tony Spring, who took over as CEO of Macy’s Inc. in February, the last month-plus has been a true test of his leadership skills as well as a peek into his future vision for the iconic retail organization. During a keynote presentation earlier this week at Shoptalk in Las Vegas, Spring detailed the transformation plan that is underway at Macy’s, including the core components that will enable the retailer to “thrive, not just survive.”
The above name of Macy’s transformation strategy is comprised of three core pillars:
1. Strengthen the Macy’s nameplate.
Spring cited three ways the company is planning to do this: revitalizing the merchandise assortment to improve both relevance and value; facilitate frictionless omnichannel shopping experiences; and closing approximately 150 underperforming Macy’s store locations.
Regarding the last item, Spring noted that Macy’s is “not shrinking, but improving its store fleet. I love and believe in stores; they just have to be the right stores.” What is the “right store”? For Spring, it’s a location with an edited assortment, easier access to available staffing, and a more engaging visual experience.
2. Accelerate luxury growth.
“Our luxury nameplates (Bloomingdale’s, Bluemercury) have been outperformers for us,” Spring told the audience. To capitalize on growing demand for the accessible luxury items sold at these banners, Macy’s Inc. is planning to open 30 Bluemercury stores over the next three years — in addition to refreshing 30 existing Bluemercury locations. Furthermore, the company will be adding to its small-format concept, Bloomie’s, with the opening of 15 new locations.
3. Invest in end-to-end operations.
This part of the strategy will “save us [Macy’s Inc.] hundreds of millions of dollars,” Spring forecasted. ” Investments in the supply chain asset portfolio, including streamlining fulfillment, improving inventory planning and allocation, and delivering a scalable technology platform will be responsible for yielding those cost savings.
“These improvements will help our team serve our customers better, and we’re confident we can get this right,” said Spring. “Digital disruption has forever changed our business. We’re channel-agnostic. We must be ready when, where and how the customer chooses to shop.”
Spring concluded his presentation by offering an optimistic take on the future of Macy’s Inc.
“I’m emboldened by the talent of the team and the clarity of our new vision,” Spring said.
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