What: Macy's ends its Guild Education partnership that provided free college degrees to employees, pivoting to more focused digital learning tools as part of its broader business restructuring.

Why it is important: This shift reflects a broader transformation in retail employee benefits, as companies reassess expensive broad-based programs in favour of more targeted, measurable initiatives amid industry-wide restructuring.

Macy's has announced the discontinuation of its partnership with Guild, which provided free access to over 100 degree and certificate programs across more than 20 educational institutions. The program, launched in 2022 with a planned USD 35 million investment over four years, will end certificate and degree programs after the current semester. The retailer's decision stems from data showing limited impact on retention and internal promotions, with only 3,000 employees completing at least one course since the program's inception. As an alternative, Macy's is expanding access to LinkedIn Learning courses to all employees, including frontline retail workers, and introducing a new partnership with Duolingo. This strategic shift comes amid broader company changes, including plans to close 150 unproductive locations and invest in 350 new stores, including small-format locations.

IADS Notes: Macy's decision to end its tuition program reflects broader challenges in retail workforce retention and benefit strategy evolution. This shift comes at a critical time when industry data shows significant workforce instability, with December 2024 research revealing that 51% of retail employees were planning to leave their positions, citing lack of empowerment (40%) and feeling undervalued (33%) as key factors. The contrast in approaches is particularly evident when compared to Walmart's January 2024 strategy, which increased store manager compensation and introduced stock options worth up to USD 20,000 annually. These divergent strategies highlight how retailers are experimenting with different approaches to employee retention, moving from broad-based benefits like tuition programs toward more targeted incentives that show immediate value to employees.

Macy’s ends its tuition-free college degree programme