Dive Brief:
- Macy's announced Tuesday that Chief Marketing Officer Martine Reardon has resigned and will leave the company on May 13.
- Reardon has been with the company for 32 years and has held the CMO position at Macy's since 2012, according to a release from the company.
- Macy's is currently searching for Reardon's replacement.
Dive Insight:
In her years at Macy's, Martine Reardon spearheaded several memorable, star-studded campaigns featuring the likes of Martha Stewart, Ryan Seacrest, and Jessica Simpson, as Ad Age notes. She oversaw Macy's annual "Believe" ad campaign, where the retailer partners with the Make-A-Wish Foundation. During Reardon's time at the company, Macy's received many awards for its marketing including Mobile Marketer of the Year, Direct Marketer of the Year, and Brandweek Marketer of the Year.
The news of Macy's CMO leaving comes during a time of turbulence for the iconic department store chain.
Macy's finds itself in a tough spot these days, with Q4 same-store sales falling 4.3% and overall same-store sales dropping 2.5% during 2015. In January, Macy's announced that it would eliminate 4,800 positions, more than half of them associated with the 40 store closings the retailer announced last fall. In response to these disappointing results, Macy's board of directors recently cut executive bonuses to zero.
Macy's troubles are the same as many department stores are experiencing: Mall foot traffic is dropping off, internet sales are growing, and younger consumers are flocking to fast-fashion retailers for cheap and trendy apparel. Macy's attributes over 50% of its profits to women's apparel and accessories — a troubling number, given that research firm Cowen and Company predicted last year that Amazon will leapfrog Macy's as the No. 1 seller in the category by 2017.
"It’s not that the department stores had no chance. But they didn’t attempt to reengineer themselves. By the time the internet came on, all but Nordstrom were late to the party and are still catching up," Mark Cohen of Columbia University’s business school, told Retail Dive last year.
Macy's also came under activist pressure to glean more value from its real estate offerings this year. The chain relented by adding a REIT executive to its board in March and hiring an executive to lead its real estate initiatives in April. The hope is to extract some much-needed funds from Macy's vast amount of store space with real estate partnerships or joint ventures.
The retailer is also betting on its off-price store concept, Backstage, with the goal of attracting a new customer base and eventually transitioning these off-price customers to full-price stores as their incomes increase. Some have criticized this move, citing the already crowded off-price field and the fact that it might dilute the Macy's brand.
Whatever is ahead, Macy's new CMO will face a daunting task: keeping the retailer fresh and relevant while still maintaining its decades-old brand and pleasing loyal customers.
