Messi's Department Stores Are Planning To Cut Costs And Optimize Supply Chains.

Macy's s Inc. (NYSE:M) Messi department store unveiled a cost cutting deepening plan at today's Goldman Sachs Global Retail summit to stimulate the largest retail store in the us to rise by 5.6% at midday.

On the basis of the current annual expenditure management plan of 1-2 billion US dollars, Macy 's Inc. Messi general store intends to raise gross margin and reduce SG&A expenditure through comprehensive measures such as curbing extensive promotional activities, introducing technology to improve pricing and optimizing supply chain, so as to achieve the goal of saving 4-5.5 $2021-2023 in total cost annually. The new plan will be financed from the inherent capital budget without additional capital expenditure.

Over the past few years, the group has ended more than 100 department stores and thousands of shop staff along with the transformation of retail business. At the beginning of this year, it announced the abolition of 100 senior management positions, and the use of provincial capital to invest and upgrade and expand the discount and online business.

However, a series of measures have limited incentive to sales. The group with 865 stores still needs to rely on discount sales to clean up inventory. Since the 2019 fiscal year, the group's same store sales have increased by less than 1%.

Paula Price, chief financial officer of Macy s Inc. Messi department store, said at the summit that they will use data analysis to improve the accuracy of discount promotions and preferential ways. In addition, physical stores will start testing self service checkout this year, aiming to achieve the scale of RFID technology and automation applications in 2023.

The inventory system will also aim at improving liquidity. At present, all stores' inventory will be put into storage at the beginning of the season. Under the new system, the group will retain some stocks and focus on supplying high demand stores according to seasonal demand. The group revealed that the sales of the new system's pilot stores could be increased by 3-4 percentage points.

On the other side, the high-end chain store Nordstrom Inc. (NYSE:JWN) Nodes Tron has made progress to accept the return of competitors such as Macy 's Inc. Messi department store, Kohl' s Corp. (NYSE:KSS), and so on.

For the first time in Manhattan, New York, the "Nordstrom Local" local service concept store hopes to attract customers and earn customers' favor by means of convenient return, donating clothes, repairing shoes and even cleaning baby carriages.

Macy 's Inc. (NYSE:M) closed at $15.31 on Thursday, narrowing to 2.7% in full day, and 47.9% in 2019, and 33.9% in Nordstrom Inc. (NYSE:JWN).