Macy's restructures management, eliminates position of Chief Operating Officer
In a significant move to adapt to the evolving retail landscape, Macy's has announced a series of senior leadership changes. The changes are part of the company's ongoing efforts to pivot in response to the rise of e-commerce and the decline of traditional malls.
Naveen Krishna, the current Chief Information Officer (CIO) at Macy's, is leaving the company. His departure comes as Macy's focuses on 'off price' as the value proposition for the brand, and prioritizes digital transformation, store optimization, and resource allocation.
The changes align with a broader strategy led by CEO Tony Spring, who has been at the helm for just over a year. Macy's has launched an aggressive plan to close underperforming stores while investing in higher-performing locations. These operational shifts indicate a focus on strengthening profit centers and reducing legacy inventory and real estate burdens.
Macy's is leveraging its trusted brand portfolio (Macy's, Bloomingdale's, Bluemercury) with a comprehensive digital footprint designed to deliver seamless shopping, combining online and physical retail experiences. The leadership changes are consistent with prioritizing such omni-channel capabilities, essential given malls’ decline.
The elimination of the chief operations title reflects a restructuring that aims to streamline decision-making and enhance agility. It signals a move away from classic operational models strong on store management toward roles and leadership that integrate e-commerce and digital expertise more directly.
Effective March 15, Marla Beck, co-founder and CEO of Bluemercury, will leave Macy's this summer. Laura Miller, former InterContinental Hotel Group Chief Information Officer, will take the CIO role at Macy's. Chuck DiGiovanna, currently vice president of real estate at Macy's, will replace Douglas Sesler as the head of real estate. Adrian Mitchell will be DiGiovanna's direct supervisor at Macy's.
Macy's is also making changes to manage promotions to increase margins and boost top line. The company is offering $500 million in senior notes due in 2029, with the proceeds including repayment of debt.
These changes come as Macy's has closed 100 locations a few years ago and another 125 locations are planned to close over the next three years. The company has also announced a cut of nearly 4,000 corporate jobs last year, aiming to save $630 million annually.
The announcement was made in a filing with the Securities and Exchange Commission. Macy's is building a diverse leadership team to accelerate the progress of its Polaris growth strategy. John Harper, the current COO of Macy's, is leaving the company on Aug 1.
Other retailers are also feeling the impact of the changing retail landscape. Best Buy announced a 17% year over year cut to its workforce, shifting the emphasis toward more part-time workers, and the closure of more large-format stores. This shift is due to the change in consumer shopping behavior from the impact of technology.
In summary, Macy’s senior leadership changes and the elimination of the chief operations role are strategic moves to better align the company with the realities of a retail environment increasingly dominated by e-commerce, while addressing the decline of malls through store rationalization and digital growth initiatives. This transformation is essential for Macy’s survival and competitive positioning in a rapidly evolving industry.
- The departure of Naveen Krishna, the Chief Information Officer (CIO) at Macy's, is part of the company's strategic focus on digital transformation.
- Macy's is restructuring its leadership team, with positions like the chief operations role being eliminated to streamline decision-making and enhance agility.
- In response to the decline of traditional malls and the rise of e-commerce, Macy's is investing in higher-performing locations, launching an aggressive plan to close underperforming stores, and prioritizing digital capabilities.
- To manage promotions and boost top line, Macy's has announced plans to offer $500 million in senior notes due in 2029, with the proceeds including repayment of debt.
- Other retailers, such as Best Buy, are feeling the impact of the changing retail landscape, with a shift toward more part-time workers and the closure of large-format stores due to the influence of technology on consumer shopping behavior.
