What: Macy's Inc. CEO Jeff Gennette announced his retirement, effective February 2024 and discusses a transformation strategy called Polaris that he will leave for his successor, Tony Spring.

Why it is important: Understanding the future direction and strategies of Macy's Inc., including the focus on off-mall specialty stores and the importance of diversity and inclusion, is crucial for investors, employees, and industry stakeholders.

Spring's main challenge is to consistently grow Macy's Inc.'s profitability and avoid losing market share. To achieve this, the company plans to open more scaled-down off-mall specialty stores and off-price formats while closing some traditional department stores in malls. Macy's Inc. will also introduce a small-format store concept with 30 new locations planned by 2025.

Gennette emphasized the importance of diversity, equity, and inclusion (DEI) in the company's agenda and the need to attract more young talent to the retail industry.

The company is focused on managing its brick-and-mortar footprint, with some department store closures expected alongside the expansion of off-mall specialty stores. Gennette stated that there are healthy malls that will thrive but also acknowledged that others will decline over time. He described the pandemic as a tough period for the company, but Macy's emerged stronger by improving its financials and navigating the e-commerce surge.

Gennette also mentioned the company's commitment to sustainability and equality, highlighting the USD 5 billion Mission Every One program launched to support sustainability and diversity initiatives. He expressed pride in his team's efforts to bring DEI to the forefront of Macy's Inc.'s agenda and create a culture where employees can bring their authentic selves to work.

Jeff Gennette on the future of Macy’s Inc., malls and himself