Its Transition Year: Macy’s in need of a backup plan amid Corona Virus Crisis
The timeless retail store Macy’s is closing its doors to 125 stores, in addition, to cutting 2000 jobs in hopes for better sales. The company announced in the beginning of February that it was gearing up for its “transition year.” But its transition year seems unattainable as Macy’s closed all stores on March 31st, 2020 amid corona virus concerns.
The store known to all, for last minute Christmas shopping, traditions like watching the Macy’s Thanksgiving Day Parade and the Fourth of July fireworks is working arduously to create a better shopping experience for its customers and employers.
The company was founded by Rowland Hussey Macy in 1851. He opened his first store called R.H Macy & Co at the corner of 14th street and 6th avenue in New York City in 1858. The retail store had a promising future by introducing new shopping and celebration trends like decorative window shopping, sponsoring holiday celebrations, and creating partnerships with celebrities and super models.
However, with a pandemic in the midst of their transition, customers are worried for the retail store because the company seems to be getting smaller. The store is already planning to see lower volume of customers this holiday season because millions of Americans are now unemployed and without paychecks.
When asked about the future of Macy's, the CEO Jeff Gennette said, “We are going to emerge out of this as a smaller company. We really do not know what the ramp back looks like.”
Macy’s announced on February 5th, 2020 slumping sales during the holiday season has contributed to the closure of 125 stores and layoffs for 2000 employees, eliminating 9% of it’s corporate and support positions. The retailer will also be moving its corporate headquarters to New York City and redesign its stores that will increase sales in the future.
Now that the Corona virus has interrupted the process, all employees were laid off, as Jeff Gennette is trying all things possible to revive the company from its grating sales. Gennette wrote in a message to employees late march, about “Having lost the majority of our sales with the store closures, we must take unusual measures to conserve cash throughout this crisis.”
The company is depending on their e-commerce to gain most sales, while the company is on pause. However, customers are complaining on Twitter about the service and productivity of the company.
Customers like Sophie and others are complaining that they are odering items, but their items are not getting delievered. In her tweet, Sophie writes “ I ordered an E-Card two weeks ago and it was never sent. You cant’t blame the postal service for this. It’s a freaking E-Card. There are no customer service reps and no way to contact via email. This is theft.”
Even so, there are people who are positive about the future of Macy’s. Vianey Sanchez, a manager in training at Roosevelt Field Mall remains optimistic, even though the store is struggling during the corona virus pandemic. Macy’s Roosevelt Field Mall were one of the stores that was undergoing changes of the new concept Gennette had in mind for the year 2020. His plan is to upgrade 100 stores and open smaller boutique stores outside of malls, known as Market by Macy’s.
Sanchez noticed these changes in certain sections at Macy’s Roosevelt Field Mall, like the Starbucks that recently opened on the second floor. Sanchez said that “Including sections like food and drink options will attract more customers because when customers are in need of a break from shopping, they can easily grab something to eat and relax with whomever they are shopping with. Overall, it makes them feel comfortable”
On March 30th, 2020, Macy’s announced that it will start reopening some stores, but Gennette’s vision is now different from what he anticipated it to be. Because of the pandemic, there will be new precautions as to what costumers will experience in the stores and how employees will be equipped to create a safer environment.
In a presentation about Macy’s stores opening back during the pandemic, Gennette described what Macy’s will look like once stores reopen. There will be a no touch service for beauty counters. Bra fittings, ear piercings and alterations will be temporarily suspended. Fitting rooms will restricted and employees will wear a company issued cloth masks.
To ensure safety, signs will be placed inside stores to remind customers to stand six feet apart, plexiglass barriers will be added at cash registers and hand sanitizers station will be placed by elevators and escalators.
Although the future for Macy’s is dampened, Gennette ended his presentation stating that, Macy’s is still planning to hold its annual Fourth of July Fireworks display in New York City, as well as its Thanksgiving Day Parade.