WEBVTT - Macy's CEO Tony Spring Talks Store Improvements

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news. You know, we were

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<v Speaker 1>just talking about the increase in foot traffic in malls.

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<v Speaker 1>A little bit earlier, I had a chance to catch

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<v Speaker 1>up with the CEO of Macy's, Tony Spring, to talk

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<v Speaker 1>about the increase in foot traffic specifically in department stores

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<v Speaker 1>and obviously specifically in the big brands that he manages,

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<v Speaker 1>including Macy's and Bloomingdale's, and his big turnaround strategy to

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<v Speaker 1>lessen the overall footprint of some of those stores a

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<v Speaker 1>leaner organization. Take a listen to what he had to say.

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<v Speaker 2>Just said about improving the customer experience. So we've had

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<v Speaker 2>record customer service scores. That's our net promoter score. Would

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<v Speaker 2>people recommend Macy's to a friend? And we're seeing scores

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<v Speaker 2>we've never thought possible at the brand, and that was

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<v Speaker 2>a real focus of mine. We've improved the quality of

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<v Speaker 2>the assortments. I thought there was way too much redundancy,

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<v Speaker 2>way too many of the same things, and I thought

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<v Speaker 2>the breadth of what we offer as a department store

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<v Speaker 2>needed to improve. We need to go good, better, best,

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<v Speaker 2>contemporary to classic in a range of brands things. As

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<v Speaker 2>we've talked about that are convenient, that you've heard of,

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<v Speaker 2>that you count on, Staples, Levi's, Nike, and then at

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<v Speaker 2>the same time, we've got to be there introducing new

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<v Speaker 2>things that you haven't heard of that are becoming more

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<v Speaker 2>popular because people are looking for that combination and a destination.

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<v Speaker 2>We also wanted to make sure that our team was

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<v Speaker 2>working together. So I'm a big believer that you need strategy,

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<v Speaker 2>you need culture, you need leadership, and you need execution.

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<v Speaker 2>We're now at the point where those four elements are

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<v Speaker 2>coming together and we're delivering a better experience for the consumer.

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<v Speaker 2>But you can't kind of have one without the other.

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<v Speaker 2>You know, a great culture without a great business, a

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<v Speaker 2>great business without a great culture. The combination of elements

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<v Speaker 2>is what I sought out to do when I kind

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<v Speaker 2>of came into the role, and I do think that,

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<v Speaker 2>you know, patients and determination go together. You have to

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<v Speaker 2>have the patients to kind of lay out what you

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<v Speaker 2>want to accomplish. You have to accept the fact that

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<v Speaker 2>some things just don't happen because you snap your fingers,

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<v Speaker 2>and then you have to have the determination the ambition

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<v Speaker 2>to kind of go after what you think is the

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<v Speaker 2>right thing to do for the business.

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<v Speaker 1>A big part of your strategy. This bold new chapter

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<v Speaker 1>is also to shrink the footprint of Macy's. At its peak,

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<v Speaker 1>you guys had what seven to eight hundred stores. You're

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<v Speaker 1>less than what four hundred now around four hundred four

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<v Speaker 1>hundred today, and the plan is to go down to

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<v Speaker 1>roughly about three point fifty. You've done a big remodel

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<v Speaker 1>of some of the existing stores already one hundred and

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<v Speaker 1>twenty five. How much further does that go in twenty

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<v Speaker 1>twenty six.

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<v Speaker 2>We'll add more stores in twenty six, and we'll close

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<v Speaker 2>some more stores in twenty six. And I think, as

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<v Speaker 2>you described it is working on both sides of the equation.

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<v Speaker 2>Closing stores is not alone a strategy. Reimagining stores without

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<v Speaker 2>dealing with stores that are past their prime is not

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<v Speaker 2>complete enough of a strategy. So we want to make

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<v Speaker 2>sure that we're doing both things, and of course it's

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<v Speaker 2>supported by a healthier digital business, one that is both

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<v Speaker 2>a place of transaction and a place of discovery. We

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<v Speaker 2>want to build relationships with consumer. That means we have

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<v Speaker 2>to be able to provide a better experience where they live.

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<v Speaker 2>We think of the digital business as a channel at times,

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<v Speaker 2>and I'm like, no, the digital business actually a geography.

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<v Speaker 2>The people who shop digitally in New York shop in

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<v Speaker 2>their stores in New York, and they want to see

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<v Speaker 2>a great experience digitally, physically and in between