Photo: Bloomingdale’s
Bloomingdale’s Hires The First Chief Merchant In Its History
Bloomingdale’s, which is celebrating its 150th anniversary in 2023, named Denise Magid as its first chief merchant.
Ms. Magid had been serving at Bloomingdale’s as EVP and GMM for ready-to-wear, center core (shoes, handbags, accessories and fine jewelry), concessions and Bloomingdale’s outlets. Merchandising responsibilities were previously handled by Bloomingdale’s CEO.
“We are confident that Denise’s vision and leadership will continue to strengthen our relationships with our brand partners and further refine how we can cater to the unique needs of the Bloomingdale’s customer,” said Tony Spring, Bloomingdale’s chairman and CEO, in a statement.
A WWD article reasoned that merchandising leadership has become more important as “merchandising and buying at Bloomingdale’s is rapidly changing and getting more complex through the adoption of additional channel formats.”
The merchant role has also become more analytics-driven with big data not only helping guide fashion trends and localization pushes but tasks such as pricing optimization, inventory and mitigating supply chain disruption.
Yumi Shin, chief merchandising officer at Bergdorf Goodman, told Fashionista of her role, “First and foremost, I think it’s managing the overall merchandising vision for the company, with the customer journey and experience in mind. That includes brand management and creating experiences that connect the Bergdorf brand to the customer. Then, you’re responsible for inventory management and for bringing in new brands and deciding which brands you want to grow. It’s a lot of analytics to drive high-level strategies.”
Nata Dvir, Macy’s chief merchandising officer, said last year at Jefferies Annual Consumer Conference, “It’s that big heavy science part of my team that we rely on to really think about how we’re going to be productive with our inventory and pricing in the future.”
Ms. Magid’s appointment comes as Bloomingdale’s comps rose 0.6 percent in the fourth quarter, outperforming declines seen at most mall-based chains, including a 3.3 percent slide at Macy’s.
Beyond its 34 Bloomingdale’s full-line stores and bloomingdales.com, the Macy’s-owned upscale chain now operates 20 Bloomingdale’s The Outlet locations after opening its first in 2010. It also has two smaller-format Bloomies stores. and is launching a marketplace in the second half.
-
Bloomingdale's Promotes Denise Magid to Chief Merchant - Bloomingdale’s/PRNewswire
-
Denise Magid Becomes Bloomingdale’s First Chief Merchant - WWD
-
What It Means To Be A 'Chief Merchant' In The Evolving Luxury Retail Landscape - Fashionista
-
Macy's, Inc. (M) Jefferies Annual Consumer Conference (Transcript) - Seeking Alpha
-
Macy’s, Inc. Reports Fourth Quarter and Full-Year 2022 Results - Macy’s
-
RetailWire Whitepaper: The Rise of the Data-Driven Chief Merchant - RetailWire
-
In Retail, Data Elbows Aside Chief Merchants - The Wall Street Journal
Discussion Questions
DISCUSSION QUESTIONS: Why do you think Bloomingdale’s separated out the chief merchant role? How is this role evolving in the fashion space?
Poll
Loading …BrainTrust
Liza Amlani
Principal and Founder, Retail Strategy Group
Dick Seesel
Principal, Retailing In Focus LLC
If your CEO does not have a merchandising background then it’s critical that the chief merchant role exists.
Merchants have skills that deeply understand the relationship between customer and product. Getting closer to the customer with the right product at the right time should be top priority for retailers. Having a chief merchant should help Bloomingdale’s streamline their merchandising strategy and give customers the product they truly want.
Even if the CEO does have a merchandising background, the merchandising responsibility should not be a side job for the CEO. Merchandising is a full-time job.
It should not shock anyone. Coming from what was traditional retailing until the 1990s, I maintain that a chief merchant is the one driving the look, the feel, the pricing and the message to its clientele (see Yumi Shin’s comments in the article). The analytics can be monitored and executed by other able bodies.
I’m surprised that Bloomingdale’s never had a chief merchant before, aside from the CEO. In this case, Ms. Magid already ran most of the categories central to Bloomie’s brand (and sales volume) so this makes a lot of sense.
A true merchant marries the magic and logic/art and science of the business. Data only misses the intricacies of merchandising, while selection only misses the analytics necessary to reinforce instincts. If those subtleties weren’t critical, a system could select assortments. But it can’t. Since the merchant-CEO is an uncommon breed these days, it appears that Ms. Magid brings that blend and provides that guidance and rigor to the rest of the merchandising organization. Good for Bloomingdale’s for recognizing the need.
The chief merchandising officer has evolved to be a critical role that ties together the arts and sciences of retail. Merchandising and assortment planning are the lifeblood of any retail operation, especially in the fashion space. Bloomingdale’s has done the right thing in setting up a leadership role at the intersection between trends, customer experience, and the products featured within the store and online.
With the unprecedented disruption we are experiencing in the form of supply chain crises, hyperinflation, labor shortages, retail store closures, and margin compressions, the need for a heightened focus on the merchandising function has become a significant priority. Proper merchandising execution and planning, backed by data and analytics, will be foundational to Bloomingdale’s growth strategies.