Macy’s restructuring to layoff around 100 jobs
American department store chain Macy’s is embarking on a programme aimed at restructuring its merchandising operations, resulting in 100 job cuts.
The company also intends to enhance its consumer insight and data analytics capabilities in an attempt to improve its performance.
Macy’s expects one-time costs between $20m and $25m towards the implementation of the programme. The costs are to be booked in the third quarter of this year.
Macy’s CEO Jeff Gennette said: “The changes we are making today maintain our core merchandising skills while massively simplifying our structure and processes for greater speed and flexibility."
Under the programme, the retailer is looking to consolidate three functions, namely merchandising; planning and private brands, into a unified merchandising function.
The company will also integrate inventory replenishment and pricing capabilities into the new merchandising structure.
Gennette added: “Having a single lens for each family-of-business will allow us to expedite our strategy of delivering this edited, elevated and exclusive assortment to our best customers. To achieve this, we will aggressively grow our private brands while also offering the best national brands.”
Through the streamlining initiative, the company aims to achieve $30m per annum in savings, which is expected to be invested back into business operations.
The company currently operates more than 700 department stores under Macy’s and Bloomingdale’s brands, along with 150 speciality stores comprising Bloomingdale’s The Outlet, Bluemercury and Macy’s Backstage.
Image: Macy's in Fairview, TX. Photo: courtesy of Jonesdr77 (talk) via Wikipedia.