Macy’s Chief Executive Jeff Gennette sees prices of overstocked items falling soon. “Customers are about to get some amazing deals on products that were hot during the pandemic,” says Gennette, who has run the biggest U.S. department-store chain since 2017.
Markdowns on excess inventory of everything from sweatpants to home goods could pinch retailers’ profit margins, however. Consumers changed their spending habits this year faster than expected on items for the office, dining out, and travel. “In a lot of cases, they’re visiting our stores again to see and touch products,’’ Gennette adds while seated in a dark paneled conference room above Macy’s flagship store in Manhattan.
The 61-year-old CEO is trying to breathe new life into its brick-and-mortar stores, which face existential threats from online competitors, fast-fashion retailers, and discount chains. His solution? Forge firmer ties between Macy’s virtual and physical settings. “We are focused on building a comprehensive omnichannel ecosystem,” Gennette explains.
His iconic employer, launched in 1858, today includes luxury Bloomingdale’s, discount outlets mainly inside Macy’s department stores, and smaller off-mall stores with extra digital services. “The second we add those off-mall stores,” Gennette observes, “the digital business in those ZIP codes goes up astronomically.”
Macy’s hired Gennette as an executive trainee in 1983 after the English literature major graduated from Stanford. He has worked for the chain ever since, except for a brief stint running an FAO Schwarz store. He developed a reputation for spotting trends as he steadily advanced, becoming Macy’s president in 2014. Gennette says being one of the few openly gay leaders of a Fortune 500 company has influenced his management style.
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Source : time
