Macy's details new growth initiatives

Luxury beauty retailer Bluemercury was acquired by Macy’s and the retailer announced another round of extensive personnel changes, including a new head merchant, that are designed to bolster its omnichannel, international and alternative format growth prospects.

Macy’s said it signed an agreement to acquire the 60 store specialty retailer Bluemercury for $210 million and would continue to operate the company as a standalone business while infusing existing Macy’s stores with the specialty retailer’s high end brands.

“Beauty is a core signature business for Macy’s and Bloomingdale’s and a continued platform for our company’s profitable sales growth. With Bluemercury, our company can access a new channel to reach additional customers, add new dimensions to our product offering and apply our expertise in omnichannel retailing,” said Terry Lundgren, Macy’s chairman and CEO. “Our plan is to operate and significantly expand Bluemercury stores as a standalone business with an enhanced omnichannel component for a seamless customer experience across stores, online and mobile. Concurrently, we also plan to add selected Bluemercury products and boutiques to Macy’s stores nationwide.”

Blue Mercury was founded in 1999 and is known for offering high-end luxury beauty brands, as well as M-61, a proprietary skincare brand – all supported with personalized assistance from a team of beauty experts with a high level of technical product knowledge, according to Macy’s.

The company’s founders, Marla and Barry Beck, will continue in their current senior leadership roles and report to Lundgren. In addition to the Bluemercury deal, Macy’s announced a series of new senior executive appointments as the company continues to deepen its focus on driving profitable sales growth as a leading omnichannel retailer and innovator.

The recent round of changes follow an extensive restructuring announcement made earlier this month that aligned the company’s management and organization in key functions – such as merchandising, merchandise planning, marketing and technology.

The most significant of the recent changes involves Macy head merchant Jeff Gennette. As president of Macy’s, Inc., Genette will relinquish his day-to-day responsibilities as chief merchandising officer to concentrate more of his time on facilitating broader growth strategies within Macy’s existing omnichannel businesses to attract new shoppers to Macy’s offering of market and private brands, and to strengthen customer relationships, consistent with Macy’s single view of the business across stores, online and mobile, according to the company.

Gennette will oversee Macy’s merchandise planning, as well as maintain oversight responsibility for merchandising and marketing of Macy’s stores and digital, and private brand product development.

“Our company benefits from extraordinary and deep talent at all levels, and we are creating new opportunities for well-rounded and experienced executives who understand the value of placing the customer at the center of all decisions as shopping patterns evolve,” Lundgren said. “These management assignments allow some of our most senior people to apply their expertise in new directions and to take our company to the next level of success.”

Among Gennette’s direct reports are Timothy Baxter, Molly Langestein, Patti Ongman and Martine Reardon. Baxter was elevated to the role of chief merchandising officer after previously serving as executive vice president and general merchandise manager for ready-to-wear.

Molly Langenstein, previously executive vice president for men’s and kids private brands, was named Macy’s chief private brands officer, succeeding Tim Adams who was named to the role of chief for international business development to focus on global opportunities.

Patti H. Ongman, previously executive vice president for omnichannel strategies, has been promoted to Macy’s chief merchandise planning officer, succeeding Julie Greiner, who will retire in August after a 40 year career with Macy’s. Martine Reardon continues in her role as chief marketing officer, now with responsibility for all Macy’s omnichannel market presence and strategy, including brand, promotional, store, digital and events marketing activity, as well as customer analytics.

Another key change involved Peter Sachse who is transitioning to a new role as Macy’s chief for innovation and business development after serving since 2012 as chief stores officer. Sachse will continue to report to Lundgren and will oversee current and future growth initiatives, including international development, exploration of a Macy’s off-price strategy, potential new store formats, expansion of the company’s offering for wedding-related occasions and gifting, and application of technology to the shopping experience.