Macy’s CEO Jeff Genette was interviewed by NRF CEO Matthew Shay who asked him about the impacts of Covid-19 on the business as well as about the future.

He emphasised the private label role in the assortment and how they have been increasing variability in the supply chain. Macy’s has reduced its suppliers by 50% in a year and is now sharing fabrics between genders, brands and age-groups. Changes are also being made in packaging to make it more sustainable.

One surprise that Macy’s experienced apparently was the fact that it was the neighbourhood stores which did well – it might have been a mistake to concentrate so much effort on the flagships suffering from the lack of travel and tourism.

The group will also further develop its off-price Back Stage format.

For the future, the big challenge is to perfect and develop the omnichannel model to offer convenience, speed and price to customers.

watch macy's ceo interview

Takeaway:

While the measures mentioned by Macy’s CEO are important, they are all things which department stores should be doing (and indeed were doing) anyway. Cost-savings in the supply chain and perfecting omnichannel are basic. It is just further improving the old department store model in preparation for what is likely to be a very different world.

It is comparable to the huge investments being planned by KaDeWe owners to create yet more stores, albeit lovely ones, (see report of GDI conference presentation by KaDeWe CEO) when what is needed is “a new approach to managing business that will satisfy a changing consumer”, as put by Walter Loeb in Forbes.

article: Macy’s CEO Jeff Gennette Talks About The Future