Comp Gains, Restructuring Usher In Macy’s New Year

Macy’s, Inc. has announced that its comparable sales advanced 2.7% in the holiday shopping months of November and December 2014 combined versus the same period last year. The company also announced structural changes and store closings that it said would help it deal with evolving market conditions.

The company maintained that it plans to restructure merchandising and marketing functions at its Macy’s and Bloomingdale’s divisions to advance an omnichannel approach to retailing. Macy’s also plans “adjustments” in its field and store operations to increase productivity and efficiency, the company stated.

The retailer plans to close 14 Macy’s stores in early spring 2015, three in California, three in Ohio, two in New York and one each in Arizona, Florida, Michigan, New Jersey, North Carolina and Tennessee, it noted. The company is adding nine Macy’s and Bloomingdale’s stores as well.

In part, savings deriving from the store closing and other initiatives— including cutting 2,200 jobs and merging two operating districts into others nearby to bring the total to 58 from 60— will fund new Macy’s efforts. The retailer noted that it would create a team within the company to explore potential opportunities for a Macy’s off-price business and advance digital retailing programs. The company also asserted that it would boost direct-to-consumer fulfillment capacity in full-line Macy’s and Bloomingdale’s stores, and at the five existing dedicated fulfillment centers located in Arizona, California, Connecticut, Tennessee and West Virginia.

Macy’s also will open a 1.3 million-square-foot direct-to-consumer fulfillment center under construction in Tulsa County, OK, later this year, the retailer pointed out, adding 1,500 year round and 1,000 seasonal employees.