Macy’s, Inc. Announces Three-Year Polaris Strategy to Stabilize Profitability and Position the Company for Growth

  • Provides preliminary 4Q and full-year 2019 sales results, narrows annual EPS guidance to upper end of range; provides 2020 guidance and three-year financial targets
  • Begins a reset of fixed cost base to stabilize and then grow profitability and cash flows; expects annual gross cost savings of $1.5 billion to be fully realized by year-end 2022, with $600 million gross cost savings achieved in 2020
  • Prepares to launch next phase of successful Macy’s Star Rewards loyalty program
  • Lays out plans to build four $1 billion power private brands
  • Optimizes store portfolio by continuing the Growth treatment of stores in best malls, closing approximately 125 stores in lower tier malls within three years, and exploring new off-mall formats
  • Establishes single corporate headquarters and relocates digital business to New York City, the heart of the fashion industry

Macy’s, Inc. today announced an updated strategy and three-year plan designed to stabilize profitability and position the company for growth.

We have a clear vision of where Macy’s, Inc. and our brands, Macy’s, Bloomingdale’s and Bluemercury, fit into retail today. We are confident in our Polaris strategy, and we have the resources required to return Macy’s, Inc. to sustainable, profitable growth,” said Jeff Gennette, chairman and chief executive officer of Macy’s, Inc.We will focus our resources on the healthy parts of our business, directly address the unhealthy parts of the business and explore new revenue streams. Over the past three years, we have shown we can grow the top-line; however, we have significant work to do to improve the bottom-line. We are confident the strategy we are announcing today will allow us to stabilize margin in 2020 and set the foundation for sustainable, profitable growth.”

We are taking the organization through significant structural change to lower costs, bring teams closer together and reduce duplicative work. This will be a tough week for our team as we say goodbye to great colleagues and good friends. The changes we are making are deep and impact every area of the business, but they are necessary. I know we will come out of this transition stronger, more agile and better fit to compete in today’s retail environment,” continued Gennette.

The five major components of the Polaris strategy are outlined below.

Strengthen Customer Relationships

The company is focusing on building customer lifetime value, accelerating personalization and monetization programs and expanding its loyalty program. This includes the launch of the next phase of its already successful Macy’s Star Rewards Loyalty program later this month. Loyalty 3.0 is expected to increase the engagement of occasional Macy’s customers and to bring new customers into the brand.

Curate Quality Fashion

Customers come to Macy’s for a compelling curation of the latest trends, exclusive products and the best brands at great value. Macy’s is driving disciplined merchandise product category roles to be the top destination for the best brands, while balancing sales and margin. As part of the merchandising strategy, the company is committed to a more focused approach to its higher-margin private brands business with plans to build four $1 billion brands.

Accelerate Digital Growth

The company has a scaled and growing digital business across its brands that generates more than $6 billion per year in sales. Macys.com contributes to overall operating profit, and the company will continue to invest in its websites and mobile apps to deliver a superior fashion experience, accelerate growth and further strengthen profitability.

The macys.com headquarters will relocate from San Francisco to New York City, the heart of the fashion industry. This will allow for better coordination and increased collaboration and better access to Macy’s brand partners. The company will also expand its presence in the Atlanta area, which will serve as the primary technology hub for the company. This includes adding positions to its current Johns Creek, GA, facility, as well as opening an office in Atlanta.

Optimize Store Portfolio

Store Closures and Staffing

The company completed a rigorous evaluation of Macy’s store portfolio. This included a store-level assessment of each store’s overall value to the fleet, including predicted profitability based on consumer trends and demographics. As a result, Macy’s plans to close approximately 125 of its least productive stores over the next three years, including approximately 30 stores that are in the process of closure now. These approximately 125 stores currently account for approximately $1.4 billion in annual sales.

Across the remaining store fleet, the company is adjusting its staffing with reductions in some stores and increases in others.

The updated stores strategy better serves today’s shopper who expects a consistent experience whenever and wherever they encounter the Macy’s brand.

“Our customers expect convenience and a tailored experience across all channels. We have an opportunity to build a broader yet integrated Macy’s experience within a metropolitan area by investing in our magnet stores, building freestanding Backstage locations and testing new, off-mall store formats,” said Gennette. “The more convenient, brand-right touchpoints we have, the greater loyalty and engagement we engender. This will enable us to grow with the next generation of American shoppers.”

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Wrap Up The Holidays With Last-Minute Gifts At Macy’s

Macy’s Makes Last-Minute Gift Shopping Easier than Ever with Grab and Go Gifts, Extended Store Hours and Special Deals

Gifts Arrive In the Nick of Time with Fast Shipping Solutions

It’s beginning to look a lot like … you waited until the last minute. Eight tiny reindeer aren’t coming to the rescue, but Macy’s has it covered with unique and thoughtful last-minute ideas from ultra-luxe to gifts under $100, $50 or $25 to make everyone believe their special gift was wrapped and sitting under the tree weeks ago. Whether you’re looking for something sparkly from the Forevermark Tribute™ Jewelry Collection or scoring an out of this world gift like First We Feast’s “Hot Ones” exclusive hot sauce pack and gear from the hit Complex Networks series, Macy’s makes finding great gifts on every budget so easy that they’re sure to get everything on the “what they really, really want” list.

When the elves have left the building, Macy’s is here to help wrap it up fast with extended store hours, fast shipping solutions and special deals. To ensure everyone’s checked off the list, Macy’s will open early and close late until Dec. 24, check your local store for up-to-date hours.

  • On Dec. 21, grab your wallet and dash to your local Macy’s, the first 250 shoppers in-store will receive a free $10 Macy’s Reward Card.
  • Orders placed by Saturday, Dec. 21 with standard shipping or by noon EST on Sunday, Dec. 22 with express delivery will arrive by Christmas.
  • Orders placed by 3 p.m. on Dec. 24 can be picked up in-store by 6 p.m., just in time for Christmas morning!

STORY at Macy’s

Faster than you can call on Dasher, Dancer or Prancer, score the perfect gift from STORY at Macy’s. “Home for the Holidays STORY,” the latest theme at the narrative-driven concept store inside Macy’s locations nationwide, features more than 900 unique presents from 200 small businesses. Experience this editorial-inspired living gift guide and discover a wonderland of gifts for everyone on the list in the ultimate home setting. From grooming kits and whimsical games to food-themed finds and rock music inspired collectibles, STORY at Macy’s gifts add wonder and merriment to any holiday celebration. Visit STORY at Macy’s at select locations or shop a highlight of gifts online at macys.com/STORY.

Discover a selection of gifts including:

Macy’s has you covered with unique and thoughtful last-minute gifts in every price range this holiday season; Luckies Of London Pocket Tin Speakers 2.0, $34.00 (Photo: Business Wire)
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2019 Holiday Gift Guide: Find The Perfect Holiday Gifts, At Every Price, At Macy’s

From ultra-luxe to gifts under $100, $50, or $25, check off this year’s shopping list with thoughtful gifts for every budget and everyone

Plus, Macy’s flexible shipping solutions deliver the perfect gifts just in time

Macy’s want to take the stress out of the season with an incredible range of items from ultra-luxe to gifts under $100, $50, or $25 of the best and buzziest brands, plus services that make finding the perfect gift effortless. Whether that stocking needs a little extra stuffing or a holiday soiree calls for cozy cashmere, Macy’s has an incredible assortment of fashion, accessories, toys, beauty, and home with convenient services and great shipping to make it simple. Check out macys.com/gifts to view helpful shopping guides by price and shop Macy’s Friends and Family sale now through Dec. 9 with code FRIENDS for extra savings.

Macy’s has curated a list of must-have gifts that are thoughtful and stress-free,” said Durand Guion, vice president, Macy’s Fashion Office. “Whether you’re looking to go luxe with a truly special piece of fine jewelry or finding that amazing under $25 gift for the office Secret Santa, we’ve got you covered. Macy’s makes it easy with suggestions from our Fashion Office, help from our Personal Stylists, and timely service with our buy online, pick up in store options.

Macy’s Personal Stylists + Gift Squad

Need a helping hand? Macy’s Personal Stylists offer fast and free service to help stumped shoppers solve their biggest gifting or party dressing challenges. Book an appointment at macys.com/personalstylist. The experts of Macy’s Gift Squad can also help pinpoint must-have gifts for the season on Instagram. The Gift Squad, a super-team of editors from Bustle and Cosmopolitan, plus members of Macy’s Fashion Office and Style Crew, will share top products for every price point and personality, and help curate the best gifts of the season for millions of shoppers.

Last Minute Shipping + Free Ship Friday

There’s also a shipping solution to fit every time crunch. Customers can receive macys.com or Macy’s app orders by Christmas when placed by Saturday, Dec. 21 with standard shipping or by 12 p.m. ET on Sunday, Dec. 22 with express delivery. For those who need more time, buy online pick up in store orders placed by 3 p.m. on Tuesday, Dec. 24 can be picked up that afternoon by 6 p.m. Dec. 13 is Free Ship Friday, and Macy’s customers can enjoy free standard delivery with no order minimum on most macys.com and mobile app orders, beginning at 9 a.m. ET. All orders placed on Dec. 13 will arrive in time for Christmas.

Gifts at Every Price

Discover gifts that you’ll love to give in every price point at Macy’s; Silken Slumber Eye Mask, $20.99 (Photo: Business Wire)

Under $25

  • NC International Concepts boxed slippers
  • Unwritten silver-plated zodiac necklace
  • Thirstystone leather flask
  • Bespoke dopp kit
  • Fisher Price Disney’s® Frozen Kristoff’s sleigh by Little People®
  • Discovery Stem planetarium projector
  • Clinique Created for Macy’s 3-pc Happy Treats Set
  • Stila 3-pc. Highest Realm Glitter & Glow Liquid Eye Shadow Set
  • Homedics Crystallize ultrasonic diffuser
  • Silken Slumber silk eye mask
  • Google Mini
  • GE C-Life Smart Bulbs
  • Created for Macy’s RH Macy & Company Holiday Confections Collection
  • Created for Macy’s Frango 1lb Prewrap in 8 flavors

Under $50

Discover gifts that you’ll love to give in every price point at Macy’s; FAO Schwarz Girls’ Vanity Makeup 30-Pc. Set, $39.99 (Photo: Business Wire)
  • DKNY winter accessories
  • INC International Concepts Zoiey 2-in-1 tote
  • Columbia Steens mountain-printed full-zip fleece
  • Created for Macy’s 5-pc fragrance sampler set for him
  • FAO Schwarz Laser Tag
  • LOL Surprise #OOTD Winter Disco
  • Tarte 8-pc. Gilded Gifts Makeup Collector’s Set
  • NARS 4-pc. Studio 54 Outshine lip gloss set
  • Art of Shaving The Men’s 5-pc. Sandalwood Starter set
  • LIDS Ohio State throw blanket
  • Thirstystone geometric colorblock marble serving board
  • Tzumi Alpha Gaming Vertex LED Stereo gaming headset
  • Victrola Solid Suitcase Bluetooth record player
  • Gifts from Stonewall Kitchen
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Macy’s Invites Customers to Send Letters to Santa as Part of Annual Believe Campaign Benefitting Make-A-Wish®

Believers of all ages can send letters and deliver wishes to children with critical illnesses

For every letter sent, Macy’s will donate $1 to Make-A-Wish, up to $1 million

Macy’s beloved Believe letter-writing campaign, benefittingMake-A-Wish®, returns for the 12th consecutive holiday season giving the gift of joy to children with critical illnesses. From now through Dec. 24, 2019, Macy’s is asking customers of all ages to write letters to Santa and drop them off in stores in Macy’s red Believe Mailbox or submit them online at macys.com/believe. For each letter sent, Macy’s will donate $1 to Make-A-Wish, up to $1 million, to help children’s life-changing wishes across America come true.

Since 2003, Macy’s has donated more than $122 million to Make-A-Wish, including more than $19 million through the annual Believe campaign, helping grant more than 14,500 wishes and impacting more than 2.9 million people, including wish kids and their families, volunteers, community groups, medical professionals and more. In addition to mailing your letter to Santa, find writing guides, local wish stories and more at macys.com/believe. (Join the conversation on social by tagging #MacysBelieve.)

Make-A-Wish kid Bettirose, 14-years-old, wishes “to be a writer and write my own book” (Photo: Business Wire)

The wishes granted through Macy’s Believe campaign can help Make-A-Wish children battling critical illnesses build the hope and strength they need to fight harder and see the impossible become possible. There are thousands of wishes currently waiting to be granted, including the wishes of these five Make-A-Wish children who are the faces of this year’s Macy’s Believe campaign.

Make-A-Wish kid Brantley, 4-years-old, wishes “to go to Colorado and build a snowman” (Photo: Business Wire)
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2019 Holiday Gift Guide: Discover Your Merry With What’s New This Holiday at Macy’s

Explore The Wonder Of The Season With New Brands, Experiences And Services To Make Shopping Easy In-Store And Online at macys.com

As The Holiday Gift Destination, Macy’s Offers A Festive Assortment Of The Perfect Gifts For The Whole Family

Macy’s Puts Holiday In The Palm Of Each Shopper’s Hand With Store Maps And Style Inspiration Directly From Its Award-Winning App

This year, Macy’s makes navigating holiday shopping even easier with a seasonally curated assortment of the best gifts in-store and online, brands that will deck the halls and keep guests happy, plus services to make picking out the perfect gift more convenient than ever. From finding a new fragrance or creating a one-of-a-kind piece of jewelry to using technology to refresh any space for entertaining, what’s new at Macy’s this holiday has everyone covered.

In-Store Exclusives

Take on the role of Santa and head into your local Macy’s for unique and custom experiences to make shopping for gifts fun and convenient.

Find the best gift in fashion, beauty, home and toys this holiday season at Macy’s. (Photo: Business Wire)

The Fragrance Bar

The holidays are the perfect time to gift a new scent, and Macy’s new Fragrance Bar allows customers to find their favorite. The Fragrance Bar’s interactive screens activate when shoppers engage with them by picking up a fragrance bottle, scent stick, or simply touching it. From there, customers can learn all about the selected fragrance, including scent notes, information about the perfumer and customer reviews, and each product has a QR code enabled for product purchase, allowing them to scan and pay through Macy’s mobile app, and pick up in-store. Visit Macy’s fragrance hub online to take a quiz to uncover your perfect scent match, learn about the newest scents of the season, and more.

Macy’s Fragrance Bar: Find the best gift in fashion, beauty, home and toys this holiday season at Macy’s. (Photo: Business Wire)

Create Your Own Jewelry

For the most luxe, one-of-a-kind gift this holiday season, visit stores to experience Macy’s newly launched “Create Your Own” jewelry program. Shoppers work with a Macy’s colleague to choose gemstones, diamonds, metals, shapes, settings and more via in-store tablets. Options for men and women include incredible engagement rings, wedding bands, necklaces, earrings, bracelets and charms. Once the design is complete, the final, personalized piece will be delivered to the customer’s home or local store in seven days, making thoughtful gifting simple this holiday season.

Holiday Lane for Trim and Toys

Discover the wonder of the holidays by visiting Macy’s Holiday Lane Toy and Trim Pop-Ups, to shop a festive assortment of Christmas décor and toy gifts. These independent store fronts in select locations will make spirits bright by showcasing some of the season’s most popular toys, glistening ornaments and classic decorations, plus beautiful wreath adornments and lush garlands to make this year’s holiday a memorable one.

Additionally, customers can shop both trim and toys in more than 500 Macy’s stores across the country, featuring exclusive items from F.A.O. Schwarz, plus a well-rounded assortment from popular brands including Barbie®, Hot Wheels®, Fisher Price®, Board Games, L.O.L. Dolls, PAW Patrol® and Lego®.

Virtual Reality in Furniture

Give yourself the ultimate seasonal splurge and purchase a new piece of furniture just in time for holiday entertaining. With Macy’s “See Your Space IRL” technology, shoppers can virtually see each piece in their home through the in-store VR experience. Now available in 140 stores nationwide, virtual reality technology allows customers to ensure that their purchase will elevate their next holiday gathering, whether they’re looking to buy a comfy couch for the whole family or an apartment-sized dining table. There are thousands of products to choose from, including new additions, such as rugs, upholstery and lighting. Starting mid-November, shoppers’ favorite Customize It feature will now be available in a VR experience. Choose from an assortment of different fabrics and colors to design a truly unique piece of furniture. Customers can also use their mobile device to visualize select furniture pieces in their space via augmented reality technology through Macy’s app and make a purchase from the convenience of their phone.

The Park at Herald Square

At Macy’s iconic 34th Street Flagship, customers can shop the re-imagined men’s store featuring new and exciting products, fashion-forward brands and a curated space highlighting trends called The Park, which completely refreshes every eight to 12 weeks. The newly unveiled 14,500 square foot main floor experience is a lifestyle hotspot for the fashion-conscious, urban customer to be inspired and discover new brands and fashion in a trendy, au courant setting.

Find the best gift in fashion, beauty, home and toys this holiday season at Macy’s. (Photo: Business Wire)

Gifts, Gifts, Gifts!

Whether you’re shopping for mom, dad or the one and only best friend, Macy’s selection of gift ideas takes the guesswork out of finding the perfect gift.

Find the best gift in fashion, beauty, home and toys this holiday season at Macy’s. (Photo: Business Wire)

New for the Home

Keep comfort and coziness top of mind this season with Hotel Collection’s new line, Hotel Collection Classic. Created exclusively for Macy’s, the new line was designed for the traditional customer looking for elevated luxury expressed in an authentic classic aesthetic. From rich jacquards and stunning velvets to beautiful embellishments, Classic offers timeless elegance for the home. The line has a range of pieces that will impress your holiday houseguests, including duvets, comforters, shams, coverlets, sheets, bed skirts and decorative pillows.

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Macy’s Reimagines Men’s Shopping Experience At Flagship Herald Square

The Main Floor Men’s Department Has Undergone A Transformation, Including The Launch Of The Park, A Revolving Destination For The Latest Trends

Macy’s Herald Square last week unveiled a major renovation to its iconic 34th Street flagship main floor men’s destination. The reimagined store layout features new and exciting products, fashion-forward brands and a curated space highlighting trends called The Park.

This reimagination sets the bar with our men’s customer,” said Mark Stocker, general business manager of men’s and kids. “We’re transforming his shopping experience, and I’m excited to see the concept rolling out to the remaining flagships with great fashion expressed in every Macy’s.”

Macy’s re-imagines men’s shopping experience at flagship Herald Square, including a revolving destination for the latest trends, The Park. (Photo: Business Wire)

Macy’s newly unveiled, 14,500 square foot main floor experience is a lifestyle hotspot for the fashion-conscious, urban customer to be inspired and discover new brands and fashion in a trendy, au courant setting. The space features new additions Scotch & Soda, Coach men’s apparel, and a premium denim zone with J BRAND, 7 For All Mankind, Fidelity, Naked & Famous Denim, as well as a revolving door of new brands including Desigual, Avirex, Paisley & Gray, INC Onyx, Goorin Bros, Brooklyn Brigade and more, hosted in The Park.

Macy’s re-imagines men’s shopping experience at flagship Herald Square, including a revolving destination for the latest trends, The Park. (Photo: Business Wire)

The Park is a 4,500 square foot hub within the experience that features on-trend, cutting edge men’s fashion and completely refreshes every eight to 12 weeks. The Park provides shoppers the opportunity to build outfits from head-to-toe across apparel, accessories, shoes, and more.

Macy’s curated assortment inspires our customer to express himself through fashion, while showing him how to effortlessly wear head-to-toe looks,” said Durand Guion, vice president of Macy’s fashion office. “We know that he loves to shop according to his style, is drawn to elevated fashion and continues to trust us to offer everything he needs, including the best brands and must-have items to update his wardrobe.

Discover The Park and shop select styles at macys.com/thepark and for more on the latest men’s fashion at Macy’s, check out The Edit on macys.com or follow @macysmen on Instagram.

Macy’s Supports Breast Cancer Research This October With ‘We All Thrive’ Campaign

Join Macy’s by donating change to benefit the Breast Cancer Research Foundation and shopping limited-time product that gives back at macys.com/pinkshop

Macy’s, a proud supporter of the Breast Cancer Research Foundation, is inspiring customers to shop pink this October with its We All Thrive campaign. The program celebrates breast cancer thrivers and empowers customers to support the fight against breast cancer by purchasing their favorite pink products on macys.com at The Pink Shop, or participating in a month-long round up campaign in store.

Pink Shop

Shop The Pink Shop in-store and online at Macy’s this October to support breast cancer Thrivers. Ideology Fight Like A Girl T-shirt, $29.50 (Photo: Business Wire)

Starting today, Macy’s customers can visit The Pink Shop, an online store featuring charitable pink fashion, home and beauty products, available at macys.com/pinkshop. The Pink Shop offers everything from an Estee Lauder bright pink lipstick set and a Movado pink gold tone watch to Peter Thomas Roth rose quartz earrings or a comfy Ralph Lauren graphic sweatshirt. Other brands include Samsonite, Wacoal, Clinique, Bali, Coach, Guess, Alex Woo, Origins and IT Cosmetics. Everyone from Grandma and Grandpa to the little ones in the family can rock their pink style all month long and show thrivers their love.

Shop The Pink Shop in-store and online at Macy’s this October to support breast cancer Thrivers. Ideology Warrior Sherpa Hoodie, $59.50 (Photo: Business Wire)

Now through October, customers can shop Ideology’s special collection of Breast Cancer Awareness Month athleisure styles created for Macy’s. Each piece is complete with inspirational messaging and imagery with the pink ribbon and phrases like “Fight Like A Girl” and “Warrior.” What’s more, with the purchase of an Ideology Breast Cancer Collection item, Macy’s will donate 20 percent of the purchase price to BCRF.

Customer Round-Up Breast Cancer Research Foundation

For the first time, from October 1 to October 31, Macy’s invites customers to participate in the We All Thrive campaign by rounding up in-store purchases to the nearest dollar, up to $0.99 and donating the change to benefit the Breast Cancer Research Foundation, the largest private funder of breast cancer research in the world. Customers can check out in-store visuals plus macys.com/macysgives to read powerful stories of breast cancer thrivers and learn more about BCRF.

Since 2003, Macy’s has funded more than $12.4 million of critical breast cancer research through BCRF, supporting 49 research projects, translating to 249,187 lab hours.