Macy’s Inc. is letting at least 100 senior executives go, including chief operations officer Robert Harrison and chief strategy, analytics and innovation officer Justin MacFarlane. General business manager for ready-to-wear Molly Langenstein also is leaving the company, but she was not part of the pool of executives that were let go.
The retailer said cutting its executives, as well as other cost-saving measures, will lead to $100 million in savings. In addition, CEO Jeff Gennette said some of its other senior leaders will be shifted to expanded roles to support growth strategies.
“We are streamlining the upper management teams in order to reduce complexity, improve agility and move faster to respond to customer changing expectations,” said Gennette, according to a transcript from Seeking Alpha.
“We will continue this operational and financial discipline by managing all aspects of our business with an eye towards profit growth, while rooting out or reprioritizing unproductive costs,” said chief financial officer Paula Price, according to Seeking Alpha.
“Also included in our 2019 numbers is our normal ongoing cost reductions of $200 million,” Price added.
But it’s not all bad news for Macy’s. Gennette said the retailer had “double-digit” sales growth online in its fiscal 2018. Macy’s also boosted the share of online orders picked up in its stores during its fourth quarter. 7% of online sales were picked up in a store in Q4, including both buy online ship to store and buy online pick up in store. Those omnichannel orders also generate more revenue for Macy’s—shoppers are often buying more products when they come in to pick up an order, generating 25% more than the online order alone on average, according to Gennette.
Macy’s is No. 6 in the Internet Retailer 2018 Top 1000.
In other ecommerce news:
- Founder and CEO of Target Corp.’s (No. 17) delivery service Shipt Bill Smith has announced he is leaving the company. Kelly Caruso is joining Shipt as the new CEO. She is a 25-year Target veteran, most recently serving as the retailer’s senior vice president of hardlines. “With expertise ranging from the sales floor to sourcing and merchandising, Kelly is a proven leader who knows retail inside and out. She’ll help Shipt continue bringing same-day convenience to more consumers through its growing marketplace of retail partners,” said John Mulligan, Shipt director and Target’s chief operating officer.
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Bridal retailer David’s Bridal Inc. (No. 407) has appointed Tom Lynch as interim CEO and Curt Kroll as interim chief financial officer, succeeding former CEO Scott Key and former chief financial officer Joan Hilson, who have stepped down from their roles. Lynch previously served as CEO of lingerie retailer Frederick’s of Hollywood, while Kroll was most recently interim chief revenue officer at discount retailer National Stores. The retailer recently emerged from bankruptcy after shrinking its debt load by about $450 million.
- Hudson’s Bay Co.’s (No. 36) president of Hudson’s Bay and Home Outfitters, Alison Coville, has stepped down from her role. Hudson’s Bay will be led by executives from its team, under the direction of CEO Helena Foulkes, until a permanent successor is found.
- Luxury women’s apparel retailer Moda Operandi Inc. (No. 403) has appointed Kristina Salen as its chief financial officer. Prior to joining Moda Operandi, Salen was chief financial officer at marketplace Etsy Inc. for more than four years, as well as chief financial officer and chief operations officer at technology company UnitedMasters.
- Jewelry retailer Signet Jewelers Ltd. (No. 102) has appointed Joan Hilson as chief financial officer. Hilson has held the chief financial officer role for David’s Bridal, American Eagle (No. 64) and L Brand Inc.’s (No. 26) Victoria’s Secret. In addition, Jamie Singleton, currently executive vice president for Zales and Peoples, has been promoted to president of Kay, Zales and Peoples, with operational responsibilities, including merchandising, marketing and ecommerce.
- Coupon aggregator company RetailMeNot Inc. has added three new executives: Joshua Platt has been named chief product officer; Scott Sundheim has been promoted to senior vice president of North America marketing; and Seth Randle has been appointed to chief counsel and compliance officer. Platt spent four years at Nordstrom Inc. (No. 16), most recently as vice president of product, and 11 years at Microsoft as director of product. Sundheim has been with RetailMeNot for seven years, but before that he held several marketing positions in his nearly 14-year tenure at Kellogg Co. Randle also has been with RetailMeNot for almost seven years as vice president of legal.
- Online wine retailer SommSelect.com has appointed Karen Roche as CEO. Prior to this role in 2000-2006, she worked as chief operating officer of The WineTasting Network, an online wine ecommerce and fulfillment operation developed for Napa and Sonoma wineries in the early 2000s.
