Dive Brief:

• Macy’s Inc. announced sweeping changes intended to better integrate its digital and in-store merchandising and marketing, combining its digital and in-store merchandising marketing teams. 
• The chain plans to add 150 employees at its San Francisco digital operations center and up to 1,500 at a fulfillment center in Oklahoma while cutting in-store staffing, closing 14 stores and opening two new ones. 
• The changes will also affect Bloomingdale’s stores, a unit of Macy’s. 

Dive Insight:

Widespread changes at Macy’s Inc. illustrate just how big an effect omnichannel sales are having on department stores. The chain plans to combine digital and in-store merchandising marketing teams, add substantial numbers of employees in digital operations and direct-to-consumer fulfillment, shutter 14 physical locations and reduce in-store staffing nationwide.

The nation’s No. 8 retailer, also the parent of Bloomingdale’s, indicates that the moves are intended to stay ahead of the customer as they shop across channels and platforms. The department stores hopes to eliminate “redundant” activity and improve responsiveness to marketplace demand.

Macy’s says it will also work to increase fulfillment from its more than 800 Macy’s and Bloomingdale’s stores, as well as direct-to-consumer centers in five states.