Left to right: John Harper, Marc Mastronardi and Dennis Mullahy - Photos: Macy’s
Macy’s, Inc. announced yesterday that its chief operating officer, John Harper, will be leaving the retailer on Aug. 1 and that the position will not be refilled. The duties currently being performed by Mr. Harper will be split between Marc Mastronardi, Macy’s chief stores officer, and Dennis Mullahy, its chief supply officer. The two men will report directly to CEO Jeff Gennette.
The department store retailer also announced that its chief technology officer, Naveen Krishna, is leaving the company. Laura Miller, who most recently served as chief information officer at InterContinental Hotel Group, is joining Macy’s in the same title and role.
“As a digitally led omnichannel retailer, Macy’s, Inc. is in the midst of an exciting transformation,” said Mr. Gennette in a statement. “We are building a diverse leadership team that includes a blend of new talent with outside perspectives along with our tenured and best developed leaders who will accelerate the progress of our Polaris growth strategy. I am confident that these changes in reporting structure will enable us to be nimbler and more efficient as we move forward in our recovery and drive top and bottom-line growth.”
The strategy referenced by Mr. Gennette is Macy’s three-year plan introduced in Feb. 2020 to turn its struggling business around.
The senior leadership position changes in IT and supply chain at Macy’s are particularly significant in light of comments Mr. Gennette made last week on the retailer’s fourth quarter earnings call with analysts.
“We have shifted a large proportion of our current and future capital to digital, supply chain and technology platforms to better integrate our digital and physical assets and deliver the most relevant shopping experiences. In part enabled by these shifts, we expect that approximately $10 billion in sales will come from the digital channels by 2023,” he said.
Macy’s fourth quarter earnings were the first positive quarterly report on that metric in more than a year. The company achieved its numbers due to inventory cutting and a reduction in promotional activity.
Macy’s same-store sales were down but showed an improvement over previous quarters. The retailer, like others deemed non-essential during the novel coronavirus pandemic, has seen its business take a hit as stores closed and consumers turned away from the merchandise it sells.