Macy’s is planning to reform its commodities and selling operations to remain in tandem with changing consumer trends.
Macy’s has stated that it is considering an off price business much akin to TJ Maxx. The retailer intends to close 14 department stores and also open two new locations. This move will lead to a savings of $140 million which will be reinvested into its business.
The moves will lay off 2,200 workers across the nation though it will be picking up workers in other areas. The overall workforce of 175,000 will remain level. Macy’s will be expanding its operations in the San Francisco online division by hiring more than 150 workers.
Macy’s strategy of merchandising according to the needs of the local markets has been very successful and it has become a standout among its peers throughout the economic recovery. The present day consumer is very cautious and is often researching on their computers, smartphone or tablets.
Macy’s is trying to woo the consumers who are looking for more convenience. Macy’s started same day delivery of goods purchased at Macy’s.com and Bloomingdales.com in eight major cities of US. Additionally consumers can now order online and pick the goods at the stores. Macy’s has also launched a new mobile shopping app in the festive season.
Terry J. Lundgren, Macy’s chairman and CEO in a statement said, “We must continue to invest in our business to focus on where the customer is headed — to prepare for what’s next.”
Macy’s goal is to increase the number of its outlet stores and at the same time it is looking at the prospects for an off price business. It is in the early stages and as a part of restructuring Macy’s wants one group to buy and market goods for both online and stores. The process will be repeated at its upscale Bloomingdale’s chain.