How Macys can turn around its business as department store struggles
Macy’s needs to reignite its creativity by featuring more exciting products in stores and hosting engaging events to attract younger generations back, according to activist investor Barington Capital.Those are just two of several changes the activist investor says are necessary to turn around Macy’s, which once established itself as a premier department store but has struggled to keep up with rapid industry changes and competition.Jim Mitarotonda, the CEO of Barington Capital Group, made it clear that he is confident in Macy’s executive leadership, saying “there isn’t any reason” why the company shouldn’t be able to improve the execution of its business.While Macy’s CEO Tony Spring and CFO Adrian Mitchell “have a good understanding of the retail sector,” Mitarotonda told FOX Business that “the thinking has to change.” Barington Capital, Thor Equities LLC and their respective affiliates, who are Macy’s shareholders, recommended that the retailer make changes to its capital allocation strategy and consider other structural actions to improve shareholder value. Mitarotonda said the company needs to bring on “superb merchants.” Spring wasn’t on the merchandising side when he was heading Bloomingdales, so it’s important that he brings on a very creative team with people with strong merchandising and fashion skills, according to Mitarotonda. “If the product is not exciting, they’re [customers] not going to go to the store or even go on a Macy’s website.
It’s just not going to happen.So it really is about the product and about creating exciting events to drive people into the store,” Mitarotonda said. The company also has to boost its digital marketing strategy, including leveraging influencers.
Appealing to younger consumers is critical in helping the company penetrate the vast retail options available to the U.S.consumer today, according to Mitarotonda.
“Young people are going to TikTok.They’re going to Instagram,...