Macy's cutting 2,300 regional managers to focus on local needs

[The Straight Story]

Macy's cutting 2,300 regional managers to focus on local needs


CINCINNATI (AP) -- Macy's Inc. hopes to tailor individual stores to the needs of customers by concentrating more managers in local markets where they will make more decisions - a move that means combining three regional divisions and cutting about 2,300 management jobs.

The announcement came as Macy's said it endured a steeper-than-expected drop in January sales at established stores and said earnings in its fiscal year would fall below Wall Street estimates. Shares slid almost 5 percent on the news.

Macy's Chief Executive Terry Lundgren told The Associated Press on Wednesday that he believes the new business structure is the right one.

"We think it is one that will get us back to the place where we can take market share and grow our sales," said Lundgren, also Macy's chairman and president.

http://hosted.ap.org/dynamic/stories/M/MACYS_CHANGES_OHOL-?SITE=WBNSTV&SECTION=HOME

[gateley]

1. One domino at a time - nt

[Warpy]

2. With the middle class gone, they'll have to change their focus

Either they'll have to compete with Wally's and Target for the prole shopper, or they're going to have to go Nieman Marcus for the lower reaches of the moneyed class. Doing the latter means cutting the number of stores in half, at least. Doing the former means offering marginally better quality and classics instead of Spears inspired slutwear at prices that aren't terribly above discount prices. The latter also means a lot less in store staff.

[kestrel91316]

3. Macy's might want to focus on clothing for people who have

responsible adult jobs to go to, and who are not anorexic teens who prefer to look like porn stars..

[azmouse]

4. I agree.

Macy's took over a local store here in Phoenix called Robinsons-May. I used to love to shop there. Now that Macy's has it I can't find anything decent there other than quality handbags.

[kestrel91316]

5. Yeah, they took over our Robinson's/May stores also.