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Macy's to cut 100 jobs in merchandising operations restructure

RBR Staff Writer Published 22 August 2017

US-based retailer Macy's said it would restructure its merchandising operations, which could result in the elimination of about 100 jobs.

Hal Lawton has been named as the company's president, effective 8 September 2017.

The restructuring includes combining of its three functions merchandising, planning and private brands into a single merchandising entity that will be led by chief stores officer Jeff Kantor and organized around five families of business (Ready-to-Wear, Center Core, Beauty, Men’s and Kid’s, and Home).

The company is also planning to include inventory replenishment and pricing capabilities into the merchandising structure.

Lawton will be handling all aspects of the Macy’s brand that includes merchandising, marketing, stores, operations, technology, and consumer insights and analytics.

The company is expecting to accumulate around $30m on an annual basis, some of which may be used for reinvestment in the business.

Also, the firm is expecting to save around $5m or nearly 1% share in the fourth quarter of 2017, which is additive to previously provided earnings guidance.

For the third quarter of 2017, Macy’s is expecting one-time costs of around $20m to $25 m associated with this restructuring.

Latwon worked as senior vice president for eBay North America and has technology and digital expertise. He will report to Macy’s CEO Jeff Gennette.

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.”

Image: Macy's CEO Jeffrey Gennette Photo: Courtesy of ©2017 Macy’s, Inc.