Business

Macy's new business strategy
by Tatiana Hadarova

Macy's Inc., one of the biggest chain department sores in U.S. came with a new strategy to focus on individual stores and try to tailor them to individually to the needs of customers. Macy's headquarters are planning to do this by concentrating more managers in local markets, so they will make more decisions about the store. But this step also means that Macy's will have to combine three regional divisions and that leads to cutting about 2.300 management jobs. Macy's decided to came with this new business structure after company's shares have dropped more than the managements expected. Another aim is that, Macy's keeps on building up the brand nationally. The effect of this strategy would be reduction of 2.3000 jobs. Those managers, who will be affected by this, will be considered for positions in new local market organization. Laid-off employees will receive several benefits and outplacement assistance, the company said. Analysts and also Macy's management are expecting turmoil and chaos at the beginning, but are sure that in the long term view this consolidation is good for investors. First benefits might be seen likely in 2009, said Macy's Chief Executive Terry Lundgren. Macy's now operates more than 850 stores in 45 states, the District of Columbia and Puerto Rico. The new plan is to group Macy's locations into 20 new districts of about 10 stores, so there will be one executive for each district base. With this new strategy Macy's would like to give more freedom and also responsibility to managers in making more decisions in areas such as service and visual merchandising.

related story: http://online.wsj.com/article/SB120232268387048269.html?mod=yahoo_hs&ru=yahoo

by Tatiana Hadarova for PocketNews (http://pocketnews.tv)

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posted by Blog TechSource @ 2:17 PM