Macy's announces merchandising ops restructuring, will cut 100 jobs
Macy's 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.' 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. While the primary objective of this restructuring is growth, the company anticipates it will save approximately $30M 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 $20M-$25M 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.