COVID-19 forced retailers to rethink operations as spring moved into summer, but now that the progression into the holiday season is at hand, Macy’s is already formulating plans to deal with the circumstances it will have to confront.
In the first quarter, Macy’s posted a big loss, but the company said recovery from COVID-19 pandemic-related shutdowns has been strong.
Macy’s is restructuring to align its cost base with anticipated near-term sales as the business recovers from the impact of the COVID-19 pandemic, including the closure of stores from March 18 through May 4, 2020 and gradual reopening.
Macy’s has secured new financing to shore up its business, while revealing that its preliminary sales and earnings results for the first quarter included a loss and lower sales, although it said e-commerce and reopened stores are performing well.
Looters broke into Macy’s flagship store in New York’s Herald Square on the night of June 1 in the aftermath of protests related to the death of George Floyd, and the company issued a brief statement on June 2 about how civil unrest has affected the company.
As it adapts to the coronavirus-impacted retail environment, Macy’s has provided preliminary sales and operating results estimates for the 2020 first quarter, which include significantly reduced sales, but also some good news from reopened stores.
Vesa Equity Investment has acquired a 5% stake in Macy’s, with its purpose, according to a filing with the United States Security and Exchange Commission, “to engage in constructive discussions with the issuer’s management and/or board of directors, other stockholders of the issuer and other interested parties that may relate to the business, management, operations (including cost structure), assets, capitalization, financial condition, strategic plans, governance and board composition and the future of the issuer.”
Macy’s said that Paula Price, the retailer’s evp/chief financial officer, is leaving the company as of May 31.
The COVID-19 outbreak continues to take a heavy toll on Macy’s business, and the retailer now plans to furlough the majority of its workforce.
Macy’s, like many retailers, has taken several actions to position the company for financial flexibility in response to the continued spread and impact of COVID-19.
A range of retailers across channels are responding to the coronavirus outbreak with moves to temporarily close their stores, reduce store hours and other consumer and employee oriented initiatives.
As retail reacts to the coronavirus, Macy’s will temporarily close all stores by end of business on March 17 with stores remaining closed through March 31.
The fourth quarter at Macy’s showed some promise, but comps and earnings still slipped, as they did for the fiscal year.
In conjunction with a recent operational reorganization, Macy’s is updating its loyalty program to give consumers more ways of participating.
Macy’s is undergoing a substantial business reorganization, including closing 125 locations and developing non-department store formats, accelerating digital growth, enhancing its loyalty program and consolidating headquarters and management staff.
Macy’s and Zola, a registry and wedding planning platform, have launched a wedding registry partnership. Engaged couples can now register for over 2,000 of Macy’s private brand and exclusive gifts across bedding, bath, tabletop, and home, directly on Zola.
Story at Macy’s, the narrative-driven retail concept inside 36 Macy’s stores nationwide, has unveiled its latest theme: “Feel Good.” Through April 2020, the Feel Good Story brings a fresh focus on wellness and uses merchandise curation and events to explore simple and actionable ways for customers to find greater balance, energy and nourishment.
Macy’s asserted that its comparable sales results for the months of November and December 2019 decreased less than previously expected. Meanwhile, several media reports indicate that Macy’s is eyeing at least some store closures.
Kroger has elected Karen Hoguet, previously CFO of Macy’s, to the company’s board of directors.
Tractor Supply Company has named Hal Lawton as its president, CEO and a member of the board of directors, effective January 13, 2020. Lawton, who is currently president of Macy’s, will succeed Tractor Supply’s CEO Greg Sandfort, who previously announced his intent to retire.