Macy's Takes Marketing Local, Cuts Jobs Nationwide

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Published at: adage.com

Nicholas WhitePresidentRetail Horizons, Inc

Macys (M) Job Cuts Will Only Harm the Franchise More

February 5, 2009

Weak top line sales and an even weaker balance sheet can't be attributed to the recession.  Here is why Macys current strategy can't compensate for weak leadership and and an even weaker business strategy.

Macy's actions are counterproductive and do not address the core issues

February 3, 2009

Analysis by: GLG Expert Contributor

Macy's top management continues to show no clear signs of understanding the breadth and depth of the problems they face.  Centralizing merchandising, marketing and planning may be appropriate moves when supported by the right technology.  However, announcing a simultaneous "regionalization" program which ads 35-40 executives to allow for localized marketing, merchandising and planning makes virtually no sense.  Rather than come to grips with the real issues, Macy's continues to grasp at slim straws.  Already with a Price - Book ratio around 0.37, Macy's is valued less than any other comparative retailer except Dillards and The Bon Ton.  Even Saks has a higher ratio.  In comparison, WM and Nordstrom are above 3, TGT above 2, and even struggling JCP is above 1.  With a virtually captive Board, there's no sign that Macy's shareholders can expect to see any improvement in their status.