Macy’s to Focus on Jewelry, Cut 100 Jobs

Macy’s says it will increase its focus on a number of categories going forward, including fine jewelry, as it undergoes a restructuring that will include the cutting of around 100 jobs.

On a Feb. 26 conference call, CEO Jeff Gennette said there were six categories in which Macy’s has seen market share growth: fine jewelry, dresses, big ticket, men’s tailored, women’s shoes, and beauty.

“When a customer comes to us to shop in one of these categories, we have the opportunity to drive cross-shopping interrelated content within the store, and this is the competitive advantage of being a department store,” Gennette said, according to a SeekingAlpha transcript. “In 2019, we will put additional resources against these destination businesses, and I will not be satisfied until Macy’s is taking total market share, and we will get there business by business, starting with these six destination businesses.”

He also said that fine jewelry sales had grown during the fourth quarter.

The company announced a restructuring that it says will “reduce the complexity of the upper management structure to increase the speed of decision making, reduce costs, and respond to changing customer expectations.”

The restructuring involves the elimination of 100 vice president–level jobs, according to the Associated Press. It expects the restructuring to ultimately save $100 million.

In addition, the company announced plans to expand its off-price Backstage concept to 45 Macy’s stores. It also says it will refurbish more than 100 of its stores.

The department store chain plans to focus on mobile and add new features to its mobile app.

“Macy’s is heading into 2019 a stronger business than we were a year ago, with healthier stores, a growing e-commerce business, and a mobile experience that is resonating with our customers,” said Gennette in a statement.

Macy’s recently promoted to Patti Ongman, a 33-year company veteran, to be its chief merchandising officer.

(Image courtesy of Macy’s)

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JCK News Director