Apparel retailer Macy's unveils wide range of initiatives

15 Jan '15

5 min read

Macy’s will also continue to make progress in digital retailing, including further developing the technology, speed and customer experience of macys.com and bloomingdales.com as they are accessed via desktop, smartphones, tablets and apps.

Advancements in business systems and information technology, including security infrastructure, to deliver the information and functionality required to support a growing Omnichannel business.

It will increase direct-to-consumer fulfillment capacity in every full-line Macy’s and Bloomingdale’s store and at the five existing dedicated fulfillment centers located in Arizona, California, Connecticut, Tennessee and West Virginia.

In addition, as many as 1,500 new year-round and seasonal associates will be hired this year at a new 1.3 million-square-foot direct-to-consumer fulfillment center now being built in Tulsa County, OK.

Plans also include opening new Macy’s, Bloomingdale’s and Bloomingdale’s Outlet stores as opportunities arise in new and existing markets. New stores to be opened in fall 2015, as previously announced, include a Macy’s in Ponce, PR, which will employ about 275 associates, as well as a new Bloomingdale’s in Honolulu, with an expected workforce of 250 associates.

Macy’s Inc also detailed a series of adjustments to its portfolio of stores across the country and will open a three-story Bloomingdale’s of 150,000 square feet in San Jose, California and is expected to open in fall 2017 and employ an estimated 250 associates.

Macy’s will build a new 155,000-square-foot store on two levels to replace its existing 136,000-square-foot Westfield Century City location in Los Angeles, CA, which was opened in 1976. The existing Macy’s will be closed in January 2016 and razed to accommodate new development in the mall.

Seven other new Macy’s and Bloomingdale’s stores are currently planned and or under construction, as previously announced. In addition, new Macy’s and Bloomingdale’s stores are planned to open in Al Maryah Central in Abu Dhabi, United Arab Emirates, in 2018 under license agreements with Al Tayer Group.

The company also said it will close the 14 Macy’s stores out of a current total of about 790 Macy’s stores in early spring 2015. Final clearance sales will begin on Monday, Jan. 12 and run for between eight to 12 weeks. Together, the 14 stores being closed account for approximately $130 million in annual sales, some of which is expected to be retained in nearby stores and with online/mobile sales.

The changes are estimated to generate savings of approximately $140 million per year, beginning in 2015, which the company expects to reinvest savings into technology and growth initiatives, including all the other initiatives, as well as to offset higher expense expected in health care and retirement plans.

In conjunction with implementation of these new initiatives, the retailer estimates charges of between $100 million to $110 million, of which approximately $80 million to $90 million is expected to be cash and will be booked in the fourth quarter of 2014. (AR)

Fibre2fashion News Desk - India

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