Macy’s appoints Hal Lawton as president

Company also announces actions to balance the ‘art and science’ of retail through changes to merchandising structure and strengthened consumer insights and data analytics

CINCINNATI, 2017-Aug-22 — /EPR Retail News/ — Macy’s, Inc. (NYSE:M) today (Aug. 21, 2017) announced several changes intended to improve the company’s performance, including the hiring of Hal Lawton as president, the creation of a single simplified merchandising organization and an enhanced focus on the company’s data analytics capabilities.

Hal Lawton Named President of Macy’s

Hal Lawton has been named president of Macy’s, effective Sept. 8, 2017. As president, Mr. Lawton will be responsible for all aspects of the Macy’s brand, including merchandising, marketing, stores, operations, technology, and consumer insights and analytics. He will report to Jeff Gennette, Macy’s, Inc. chief executive officer. Mr. Lawton has strong technology and digital expertise and was most recently senior vice president, eBay North America. He spent his earlier career at Home Depot and McKinsey & Company.

“Hal Lawton has deep expertise at the intersection of retail and technology, a diverse set of business experiences that give him a unique perspective, and a track record of successfully driving a change agenda at scale. I’m thrilled that he has chosen to join Macy’s,” said Mr. Gennette. “This is a key step as we look to further transform the business and work through the volatility of today’s retail landscape. Macy’s already has one of the strongest omnichannel businesses in the industry, and with Hal on the team, we will accelerate the integration of digital both online and in our stores to deliver the world-class experience our customers demand.”

“At a time when there is both dramatic change and great potential in retail, I’m excited to be part of the team that will shape the future of the Macy’s brand and, along with it, consumer expectations of what a great omnichannel experience can be,” said Lawton. “I look forward to working with Jeff, the management team and Macy’s associates across the country. It’s great to play a part in the transformation of this iconic company.”

As SVP of eBay North America, Mr. Lawton was responsible for all aspects of eBay’s Americas business unit and oversaw a period of sustained, sequential performance improvement. Prior to joining eBay, Mr. Lawton spent 10 years in various leadership roles at Home Depot, where he was most recently SVP for merchandising. While at Home Depot, Mr. Lawton was responsible for jump-starting homedepot.com and building it into a nearly $2 billion business.

Improvements to Merchandising, Strengthened Consumer Insights and Data Analytics Capabilities

The company also announced the restructuring of its merchandising operations and the strengthening of its consumer insights and data analytics capabilities.

The restructuring includes the consolidation of three functions – merchandising, planning and private brands – into a single Merchandising function to be led by Jeff Kantor and organized around five ‘families-of-business’ (Ready-to-Wear, Center Core, Beauty, Men’s and Kid’s, and Home). Feeding into this new merchandising structure are strengthened customer insights and data analytics, which the company is expanding to include inventory replenishment and pricing capabilities.

“Macy’s best merchants will be in the right structure to operate at the speed of our customer and will be fueled by the power of data,” said Gennette. “Macy’s has long been known for innovation and excellence in merchandising. The changes we are making today maintain our core merchandising skills while massively simplifying our structure and processes for greater speed and flexibility. We are also further strengthening our consumer insights and data analytics capabilities so we can make better decisions faster, balancing the art and science of retail.”

“Exclusivity is a great customer loyalty tool, and we plan to grow that offering to 40 percent of our business. Having a single lens for each family-of-business will allow us to expedite our strategy of delivering this edited, elevated and exclusive assortment to our best customers. To achieve this, we will aggressively grow our private brands while also offering the best national brands,” continued Gennette. “I’ve asked Jeff Kantor to lead Merchandising because of his deep knowledge of our business, strong relationships with our brand partners and outstanding leaderships skills.”

Mr. Kantor is a 35-year Macy’s veteran, with extensive experience in merchandising and stores. He also successfully oversaw macys.com. Currently, Mr. Kantor serves as chief stores and human resources officer. Mr. Kantor will report to Mr. Lawton.

Financial Impact

While the primary objective of this restructuring is growth, the company anticipates it will save approximately $30 million on an annual basis, some of which may be used for reinvestment in the business. The company anticipates savings of approximately $5 million or approximately 1 cent per share in the fourth quarter of 2017, which is additive to previously provided earnings guidance.

The company anticipates one-time costs of approximately $20 – $25 million associated with this restructuring, to be booked primarily in the third quarter of 2017.

The company expects that these actions will result in a headcount reduction of approximately 100.

About Hal Lawton

Hal Lawton was named SVP, eBay North America, in April 2015. In that role, Lawton oversaw all aspects of eBay’s Americas business unit, including marketing, merchandising, operations, business selling, consumer selling, and advertising, as well as global responsibility for shipping, payments, risk, and trust. Prior to joining eBay, Lawton spent 10 years in various leadership roles at Home Depot, where he most recently was SVP for merchandising. Lawton was responsible for starting Home Depot’s Internet business and building it to nearly $2 billion. Prior to that Lawton was an associate principal at McKinsey & Co., providing strategic advice to executive teams in consumer packaged goods and manufacturing industries.

Lawton serves on the board of Buffalo Wild Wings Inc. He also serves on the corporate advisory board for The University of Virginia’s Darden School of Business and is a member of the Board of the San Jose Children’s Discovery Museum. He holds an MBA from the University of Virginia and a Bachelor’s degree in Chemical Engineering from North Carolina State University.

About Jeff Kantor

Jeff Kantor has nearly four decades of experience with Macy’s, Inc. and its predecessor companies. He was named chief stores officer of Macy’s, Inc. in February 2015, responsible for overseeing all aspects of store strategy, management and operations. He assumed additional responsibility for Human Resources in February 2017. Previously, Kantor was named chairman of macys.com and served as macys.com’s president for merchandising. Prior to that, Kantor had been Macy’s president, merchandising for home. Kantor was previously president and chief executive officer of the Hecht’s/Strawbridge’s division of the May Department Stores Company, which was acquired by Macy’s, Inc. in 2005. Kantor started his career as an assistant buyer at the Boston-based Filene’s/Kaufmann’s division of May Company in 1981.

About Macy’s, Inc.

Macy’s, Inc. is one of the nation’s premier retailers. With fiscal 2016 sales of $25.778 billion and approximately 140,000 employees, the company operates more than 700 department stores under the nameplates Macy’s and Bloomingdale’s, and approximately 150 specialty stores that include Bloomingdale’s The Outlet, Bluemercury and Macy’s Backstage. Macy’s, Inc. operates stores in 45 states, the District of Columbia, Guam and Puerto Rico, as well as macys.com, bloomingdales.com and bluemercury.com. Bloomingdale’s stores in Dubai and Kuwait are operated by Al Tayer Group LLC under license agreements. Macy’s, Inc. has corporate offices in Cincinnati, Ohio, and New York, New York.

All statements in this press release that are not statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of Macy’s management and are subject to significant risks and uncertainties. Actual results could differ materially from those expressed in or implied by the forward-looking statements contained in this release because of a variety of factors, including conditions to, or changes in the timing of, proposed real estate and other transactions, prevailing interest rates and non-recurring charges, store closings, competitive pressures from specialty stores, general merchandise stores, off-price and discount stores, manufacturers’ outlets, the Internet, mail-order catalogs and television shopping and general consumer spending levels, including the impact of the availability and level of consumer debt, the effect of weather and other factors identified in documents filed by the company with the Securities and Exchange Commission. Macy’s disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Media:
Blair Fasbender Rosenberg
646-429-6032

Investors:
Monica Koehler
513-579-7780

Source: Macy’s, Inc.

Macy’s completes sale of its Minneapolis property at 700 Nicollet Mall to 601W Companies

Store anticipated to close in spring 2017 and slated for redevelopment by 601W Companies

CINCINNATI, 2017-Mar-06 — /EPR Retail News/ — Macy’s, Inc. (NYSE:M) today (Mar. 1, 2017) announced the completion of the sale of its downtown Minneapolis property located at 700 Nicollet Mall. The property was acquired by 601W Companies, which is planning a major mixed-use redevelopment for the historic building.

“As a part of our overall real estate strategy, Macy’s has been investigating the best possible use for this property, especially given the large amount of unproductive and unused space on the upper floors. We have talked with a wide variety of partners in pursuit of a plan that would create the most value for the company and the community, and are pleased that the new owner intends to invest substantial capital to repurpose the building,” said Jeff Kantor, Macy’s chief stores officer. “601W Companies has an exciting vision to redevelop the building into creative office space on the upper floors and to pursue retail opportunities on the street and skyway levels. We believe this will be an outstanding addition to the downtown Minneapolis community in the heart of the city.

“Macy’s – and originally Dayton’s – has served the downtown Minneapolis community at this location since 1902, and we deeply appreciate the relationships we have built with generations of Minnesotans, including our customers, associates, community leaders and elected officials,” he said. “While we will not operate a downtown store going forward, Macy’s remains committed to our customers and associates at eight other stores in the Twin Cities, including six department stores and two furniture galleries, as well as on macys.com.”

The company noted that it has been honored to continue the traditions of the Downtown store that the community has cherished for decades and is committed to ensuring that much of the Dayton’s heritage is preserved. For instance, the Dayton- Hudson archive display will be moved and displayed in the Southdale store. The Oval Roommerchandise will be available at the Southdale store, which includes designer labels such as St. John, Max Maraand Armani Collezioni. Macy’s also has donated archival items to the Minnesota Historical Society, including past iconic events’ displays, props, floor plans, candy kitchen machinery and molds.

On Jan. 4, 2017, the company announced it had signed an agreement to sell the downtown store building. Today’s announcement is the finalization of that agreement. A final clearance sale in the store began on Jan. 9, 2017 and is expected to run until late March. The company anticipates that the store will close in spring 2017.

The original location opened as a Dayton’s store in 1902 and was expanded several times until 1945. The store was renamed as Marshall Field’s in 2001. Marshall Field’s was acquired by The May Department Stores Company in 2004 which, in turn, was acquired by Macy’s, Inc. in 2005. The Marshall Field’s nameplate was changed to Macy’s in September 2006.

Going forward, Macy’s workforce in the Twin Cities area will include approximately 1,500 associates. This includes 90 Macy’s associates working in various district offices on the upper floors of the downtown Minneapolis building who will be relocated to space in other Macy’s stores in the Twin Cities area. The current downtown Minneapolisstore workforce includes 280 employees. Associates displaced by the closing may be offered positions in nearby stores where possible. Eligible full-time and part-time store associates who are impacted by the store closing will be offered severance benefits if positions are not available in other locations.

The purchase price for the property was $59 million in cash. Macy’s, Inc. will record a gain for the property of approximately $47 million in the first quarter of 2017. The gain was originally anticipated and included in 2017 earnings guidance previously provided by the company.

About 601W Companies

The principals of 601W oversee one of America’s leading private real estate acquisition, ownership, development and management portfolios in the country. Over the past 25 years, 601W has acquired a number of substantial and well-known commercial properties throughout the country, aggregating 45 million square feet, with a collective value in excess of $7.5 billion. In relation to these deals, 601W has raised more than $2 billion in equity, mostly from longstanding investors, and has consummated transactions involving 40 major office buildings, including 11 in Manhattan and 6 in Chicago.

Visit www.601wcompanies.com

About Macy’s, Inc.

Macy’s, Inc., with corporate offices in Cincinnati and New York, is one of the nation’s premier retailers, with fiscal 2016 sales of $25.778 billion. The company operates more than 700 department stores under the nameplates Macy’s and Bloomingdale’s, and approximately 125 specialty stores that include Bloomingdale’s Outlet, Bluemercury and Macy’s Backstage, in 45 states, the District of Columbia, Guam and Puerto Rico, as well as the macys.com, bloomingdales.com and bluemercury.com websites. Bloomingdale’s in Dubai is operated by Al Tayer Group LLC under a license agreement.

All statements in this press release that are not statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of Macy’s management and are subject to significant risks and uncertainties. Actual results could differ materially from those expressed in or implied by the forward-looking statements contained in this release because of a variety of factors, including conditions to, or changes in the timing of, proposed real estate and other transactions, prevailing interest rates and non-recurring charges, store closings, competitive pressures from specialty stores, general merchandise stores, off-price and discount stores, manufacturers’ outlets, the Internet, mail-order catalogs and television shopping and general consumer spending levels, including the impact of the availability and level of consumer debt, the effect of weather and other factors identified in documents filed by the company with the Securities and Exchange Commission. Macy’s disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

(NOTE: Additional information on Macy’s, Inc., including past news releases, is available at www.macysinc.com/pressroom)

Media Contact:
Andrea Schwartz
312-781-4333

Investors Contact:
Matt Stautberg
513-579-7780

Source: Macy’s, Inc.

Macy’s, Inc. to build new Macy’s store at Fashion Place in Murray, UT

CINCINNATI, OH, 2015-8-19— /EPR Retail News/ — Macy’s, Inc. (NYSE:M) today announced it will build a new Macy’s store at Fashion Place in Murray, UT, one of the Salt Lake City area’s premier shopping, dining and entertainment destinations. Construction will begin in early 2016 after the former Dillard’s building is razed, with an opening planned for spring 2017.

The new Macy’s will be a 160,000-square-foot, two-level store with a full range of apparel and accessories for women, men and children, as well as home merchandise. A much smaller Macy’s (of 26,000 square feet) closed in 2014 as part of a major redevelopment of Fashion Place, which is owned by General Growth Properties, Inc.

Macy’s currently operates six stores in Utah, including four locations in the Salt Lake City market. The new Macy’s store is expected to employ approximately 150 associates.

“Fashion Place is an outstanding shopping destination in one of America’s fastest-growing regions, and we look forward to returning with a larger and more modern store that will offer the best of Macy’s,” said Jeff Kantor, Macy’s chief stores officer. “Our approach will be to serve customers with a tailored merchandise assortment and shopping experience that meets the particular needs and preferences of our Utah customers.”

Macy’s, Inc., with corporate offices in Cincinnati and New York, is one of the nation’s premier retailers, with fiscal 2014 sales of $28.105 billion. The company operates about 885 stores in 45 states, the District of Columbia, Guamand Puerto Rico under the names of Macy’s, Bloomingdale’s, Bloomingdale’s Outlet and Bluemercury, as well as the macys.com, bloomingdales.com and bluemercury.com websites. Bloomingdale’s in Dubai is operated by Al Tayer Group LLC under a license agreement.

All statements in this press release that are not statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of Macy’s management and are subject to significant risks and uncertainties. Actual results could differ materially from those expressed in or implied by the forward-looking statements contained in this release because of a variety of factors, including conditions to, or changes in the timing of, proposed transactions, prevailing interest rates and non-recurring charges, competitive pressures from specialty stores, general merchandise stores, off-price and discount stores, manufacturers’ outlets, the Internet, mail-order catalogs and television shopping and general consumer spending levels, including the impact of the availability and level of consumer debt, the effect of weather and other factors identified in documents filed by the company with the Securities and Exchange Commission.

Macy’s, Inc.
Media
Jim Sluzewski, 513-579-7764
or
Investor
Matt Stautberg, 513-579-7780