Dive Brief:
- Macy’s Chief Marketing Officer Martine Reardon is leaving the retailer next month. Reardon has been with Macy’s for 32 years and has held the CMO position since 2012.
- Macy’s reported a 31% drop in profit over the holiday season and those poor sales resulted in January layoffs.
- In similar industry news, Ad Age reports that Kohl’s Executive VP of Marketing Will Setliff is leaving the retailer this week.
Dive Insight:
Reardon's move to leave Macy's comes at a time when the retailer is struggling with change. The Wall Street Journal attributed Macy’s poor holiday season to competition from lower-priced retail chains, e-commerce, an unusually warm winter, and lower spending from international tourists due to a strong U.S. dollar. Macy's announced job cuts after the holiday season.
“It is with deep sadness that we accept Martine’s resignation from Macy’s," Macy’s Chairman and Chief Executive Terry Lundgren said in a statement. "Martine’s leadership, insight, creativity and expertise have enabled Macy’s to compete in physical stores and digitally as customer shopping preferences have evolved.”
Macy's iconic department stores are challenged by the threat of e-commerce, endless discounting, slower store traffic, and other trends. Macy’s once had a more diverse merchandise mix, but it and other department stores these days depend heavily on apparel sales, which is a tough segment.
The Journal reports the company has hired advisors to look at real estate holdings in markets including San Francisco and New York, a move mirrored in interest by investor Starboard Value L.P., which is pressing Macy’s to look for revenue from its vast real estate holdings.