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Flash Reports 2 minutes

Macy’s Names New President, Announces Restructuring

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Coresight Research

Key Points

  • On August 21 after the market close, Macy’s announced the appointment of Hal Lawton as President, effective September 8. Lawton will be responsible for the Macy’s brand, including merchandising, marketing, stores, operations, technology, and consumer insights and analytics. Lawton was previously SVP of eBay North America. He will report to CEO Jeff Gennette.
  • Separately, the company announced a restructuring of its merchandising operations to consolidate three functions—merchandising, planning and private brands—into a single merchandising function, led by Jeff Kantor.
  • The restructuring is expected to save $30 million on an annual basis, including $5 million, or $0.01 per share, in the fourth quarter, which is additive to guidance announced on August 10 of adjusted EPS of $3.37–$3.62.
Hal Lawton Named President of Macy’s

On August 21 after the market close, Macy’s announced that Hal Lawton has been named President of Macy’s, effective September 8, 2017. Lawton will be responsible for the Macy’s brand, including merchandising, marketing, stores, operations, technology, and consumer insights and analytics. He will report to CEO Jeff Gennette. The company noted Lawton’s strong technology and digital expertise. Previously, Lawton was SVP of eBay North America, and his prior experience includes stints at Home Depot and McKinsey & Company.

Restructuring—Improvements to Merchandising, Strengthened Consumer Insights and Data Analytics Capabilities

Separately, the company announced a restructuring of its merchandising operations and the strengthening of its consumer insights and data analytics capabilities. The restructuring will consolidate three functions—merchandising, planning and private brands—into a single merchandising function organized around five “families of business” (ready-to-wear, center core, beauty, men’s and kids’, and home). This new merchandising function will be led by Jeff Kantor, a 35-year company veteran with extensive experience in merchandising and stores. Kantor currently serves as Chief Stores and Human Resources Officer and previously successfully oversaw Macys.com. He will report to Lawton.

Financial Impact of Restructuring

The restructuring is expected to save $30 million on an annual basis, including $5 million, or $0.01 per share in the fourth quarter, which is additive to the company’s guidance, announced on August 10, of adjusted EPS of $3.37–$3.62.

The company anticipates onetime restructuring costs of approximately $20–$25 million, to be booked primarily in the third quarter of 2017, as well as a headcount reduction of approximately 100.

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