Summary
Overview
This episode explores the future of Macy's department stores and traditional retail through the lens of their famous Thanksgiving Day Parade. The discussion features Macy's CEO Tony Spring defending his turnaround strategy, retail expert Mark Cohen offering critical analysis, and children's author Jeff Kinney's ambitious plan to revitalize downtown Plainville, Massachusetts through retail development. The episode examines whether physical retail can survive and thrive in the modern economy.
The State of Macy's and Retail's Evolution
The episode opens by examining Macy's current position as a struggling retail giant with a market cap of only $6 billion, despite real estate holdings worth significantly more. CEO Tony Spring became CEO in February 2024 and is tasked with engineering a turnaround of the 167-year-old company. The discussion explores how Macy's grew from hospitality roots through the Bloomingdale's executive training program, and how retail consolidation eventually led to today's challenges.
- Macy's has been around 167 years and put on parades for 101 years, but faces an uncertain future
- Market cap is around $6 billion, while Target is $40 billion and Walmart is $850 billion
- Real estate portfolio alone is estimated worth $7-11 billion, more than the company's market cap
- There are now fewer than 500 Macy's stores, down from over 800 in 2007
" We are not just a retailer. We are not just a physical store. We are a celebrator of life's moments. "
" Now is the time to buy Macy's. "
Tony Spring's Bold New Chapter Strategy
CEO Tony Spring outlines his turnaround plan, which includes closing 150 underperforming stores, selling real estate to raise half a billion dollars, and focusing on improving the customer experience in remaining locations. He emphasizes the need to make stores cleaner, better staffed, and more relevant to multi-generational shoppers. Spring also plans to expand the more successful Bloomingdale's and Blue Mercury brands while shrinking the core Macy's footprint.
- Plan involves closing approximately 150 stores and selling the real estate
- Strategy focuses on winning both critical acclaim and commercial success, like winning an Oscar and the box office
- Company serves 41 million active customers across five generations
- Rejected a $6 billion takeover proposal from Ark House and Brigade Capital
" We want to win an Oscar. We also want to win at the box office. "
" That first impression mentality stuck with me all throughout my retail career. "
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