Macy’s CEO Tony Spring Discusses Bold Strategy to Revitalize Department Stores.

Macy's Inc. CEO, Tony Spring, recently acknowledged that the shopping experience at the company’s iconic department stores "could be improved" but reassured industry leaders that department stores are far from obsolete. Speaking at the National Retail Federation’s annual Big Show in New York City, Spring shared insights into the changes Macy’s is making as part of its Bold New Strategy to improve the company's financial performance and revamp its retail operations.

“Let’s change the presentation on the floor in terms of density of product. Let’s put people back into the fitting rooms to make sure the service experience is better,” Spring said, outlining some of the adjustments Macy’s is implementing to enhance customer satisfaction. These changes have already led to three consecutive quarters of sales growth at 50 of Macy’s locations.

While department stores like Kohl’s and Nordstrom have faced struggles, Spring remains confident about the future of Macy’s. “The death of department stores has been going on since I was a child,” he quipped, adding, “the same death knell has kind of been rung multiple times." Spring emphasized that department stores still hold the power to adapt quickly to shifting consumer trends.

Macy's Inc.

“Department stores are the curation of choice,” he explained. "You're not limited to just men's, women's, kids, or home. We can adjust based on the trends we see that season." This adaptability, Spring believes, is one of the strengths that allows Macy’s to thrive despite challenges in the retail industry.

Macy's is also implementing a significant business model overhaul, including closing 150 underperforming stores. However, Spring firmly believes in the synergy between Macy’s, Bloomingdale's, and Bluemercury. Despite calls for potential spin-offs from activist investors, he highlighted the benefits of leveraging operational scale across the three brands, mentioning "there’s just so much opportunity for us to leverage the scale of the portfolio."

While Macy's faced a 2.4% decline in sales in its latest quarter, totaling $4.7 billion, Spring's comments provide a glimpse of optimism, signaling that Macy's is positioned to continue evolving in the competitive retail landscape.