Tuesday, February 19, 2008

Macy’s finds new strategy, cuts 2,300 jobs

Macy’s finds new strategy, cuts 2,300 jobs

Well, it seems the Red Star Whore store has learned something from its big bully take over of regional chains — don’t mess with success.

Macy’s announced Wednesday a major shakeup in the company’s business plan.

Not even two years after removing several well-known store names and trying a full scale national department store effort, Macy’s will begin rolling out a plan that calls for regional districts serving no more than 10 stores each. Current districts serve up to 18 stores.

“Macy’s said regional headquarters in Minneapolis, St. Louis and Seattle will be consolidated into offices in New York, Atlanta and San Francisco, respectively,” the AP reports.

The plan comes at a major cost, though. Macy’s said 2,300 jobs would be lost in the company’s new plans. About 250 manager positions will be created in areas adopting the new business plan.

This round of job cuts is different from the company’s two other recent announcements of getting rid of hardworking people. In early January, the company announced that 1,171 people would lose their jobs.

Macy’s January same-store sales fell 7.1 percent. Its worst month on record is December 2007 when the company announced a 7.9 percent fall.

Previous to the big merger of MayCo stores operated under similar strategies. Stores were grouped into districts where local managers made buying decisions and visual layouts in stores.

Macy’s will take this plan and attempt to market its New York appeal locally.

As much as I hate Macy’s, I am glad they have seen the light and realized their original plan to sweep across the nation and change the mindset of shoppers from Pittsburgh to Seattle has failed. There was no chance in retail hell that Macy’s could market a New York store in Topeka, Kansas.

The company needs to listen to local shoppers. It can’t bring sweeping changes to areas that just won’t accept them. We’ll see how this changes things. Sadly, this still won’t bring back Kaufmann’s and Filene’s. It won’t bring a uniqueness to the local shopping experience. Consumers will still go about their business like hamsters in a cage, forced to pick from a mundane selection that people all over the country have to choose from as well.

Maybe prices at Macy’s will drop. HA! Who am I kidding?

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