Macy’s has long sought a transformation that can help turn its struggling business in the right direction. As part of its latest efforts to restructure the company, the department store chain has appointed eBay executive Hal Lawton to fill the role of President, effective Sept. 8, 2017.
Lawton’s hiring coincides with Macy’s restructuring of its merchandising operations, as the brand attempts to strengthen its consumer insights and data analytics capabilities. Macy’s anticipates the restructuring will save the company approximately $30 million on an annual basis but that it will cost between approximately $20 million and $25 million in the short term, with most of the charges incurring in Q3 2017. Additionally, the retailer will have to cut approximately 100 jobs as part of the restructuring.
As President, Lawton will be responsible for all aspects of the Macy’s brand, including merchandising, marketing, stores, operations, technology, and consumer insights and analytics. In the role, Lawton will report to CEO Jeff Gennette, who previously held the title of President.
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Lawton is leaving his position as Senior VP of eBay North America, which he had held since joining the company in 2015. Other positions include 10 years at The Home Depot, where he most recently served as SVP for Merchandising, and McKinsey & Company.
“[Lawton’s] background, particularly at The Home Depot and eBay, make him arguably one of the most interesting outside additions to the entire department store space (let alone Macy’s) over the past decade,” said Chuck Grom, Consumer and Retail Equity Analyst at research advisory firm Gordon Haskett in commentary provided to Retail TouchPoints. “Indeed, while Macy’s has yet to entertain acquiring digital native brands (à la the recent Walmart playbook), one has to think that the addition of Lawton will bring a fresh perspective — one that is arguably long overdue. All told, while the move won’t impact sales or profitability overnight, we think the addition could mark the beginning of a new chapter for Macy’s.”
Merchandising Functions Consolidate As Private Label Sales Goal Reaches 40%
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” (Ready-to-Wear, Center Core, Beauty, Men’s and Kid’s, and Home). Kantor presently serves as Chief Stores and Human Resources Officer of Macy’s, but will report to Lawton as the company’s new Chief Merchandising Officer.
Gennette noted in a statement that Macy’s has set a goal of growing private brand sales to 40% of its business. Private brands now represent approximately 29% of Macy’s total sales.
