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--(BUSINESS WIRE)--Aug. 21, 2017--
Macy’s, Inc. (NYSE:M) today 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
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
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
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
“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
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.
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.
NOTE: Additional information on Macy’s, Inc., including past news
releases, is available at www.macysinc.com/pressroom.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170821005848/en/
Source: Macy’s, Inc.
Media – Blair Fasbender Rosenberg, 646-429-6032
– Monica Koehler, 513-579-7780