A Fresh Take
International department store veteran appointed as CEO of Bloomingdale's, which is part of Macy's Inc. company.
Let's dive in and discuss the latest move by Macy's in their hunt for a new leader for Bloomingdale's.
- Stepping Up: To fill the shoes of Tony Spring, who is grabbing the reins at Macy's as their new CEO, Macy's announced that they've snagged an experienced department store honcho from abroad.
- The New Boss: Olivier Bron, set to join the team sometime in early November, was most recently running the show at Central Group's Central and Robinson Department Stores in Thailand. Before that, he was the COO and head of strategy at Galeries Lafayette in Paris.
- In Charge: Bron, who's packing his bags for the Big Apple, will be spearheading Bloomingdale's overall strategy, reporting directly to Spring, according to Macy's official statement.
Outlook:
Macy's decision to search for new blood for Bloomingdale's extends beyond their own ranks, crossing borders in the process.
This is a departure from the norm for both Macy's stores. Spring has been with the company for nearly four decades, starting at Bloomingdale's back in 1987 as an executive trainee at a suburban New York store. Gennette has also been with the department store for 40 years.
Bron's foreign status might be just what Macy's upscale banner needs, according to GlobalData Managing Director Neil Saunders.
"We're chuffed that Macy's has gone for an outsider, in our opinion, as Bloomie's is in desperate need of some fresh thinking and innovation," he said via email. "The current management has been far too focused on internal matters, leading to a lack of new ideas and initiatives, creating a somewhat dull retail landscape."
However, there's a risk involved, as Bloomingdale's has relied on leaders with institutional know-how in the past, according to Mark Cohen, director of retail studies at Columbia University's Graduate School of Business. Like most retailers, Bloomingdale's is grappling with sluggish sales in a tough economic climate. Store comps shrank by 2.6% in their most recent quarter, despite overall company-wide comps dropping a steeper 7.3%.
"Some organizations become stale due to inbreeding, such as Macy's," Cohen explained via email. "Bloomie's, on the other hand, has consistently thrived under the guidance of long-term leaders like Marvin Traub, Michael Gould, and Tony Spring, who was mentored by Michael Gould for quite some time."
With two decades of experience under his belt, Bron could steer Bloomingdale's towards international growth, although he's got his work cut out for him domestically, Saunders advised. The retailer currently operates stores in Dubai and Kuwait.
"While the brand currently has a presence in two Middle Eastern countries, there's room for expansion to other regions, which could help offset slower growth at home," Saunders said. "However, before that happens, more effort is needed to make the brand stand out in a crowded luxury market saturated with direct-to-consumer offerings from brands."
In a statement, Spring himself, who takes the helm at Macy's next year, heralded Bron's extensive international retail tenure and deep knowledge of the luxury market as invaluable in their quest for growth.
"Once he arrives, Bron will be reporting to the man who's been running the show at Bloomie's for years. To truly make an impact, he'll need the freedom to make necessary changes," Saunders cautioned. "This has traditionally been a problem for Macy's, which tends to be stuck in its ways. But it's pointless to bring in new voices and ignore what they have to say."
This momentum won't just affect Bloomingdale's but could also impact Macy's more broadly, according to Cohen.
"It's anybody's guess how Bloomie's new CEO will be received by the organization, and then again how Bloomie's will fare while its corporate parent attempts to break free from the rut it's found itself in," he concluded.
- In the realm of artificial intelligence (AI), some within the macroeconomic industry are questioning Macy's strategic decision-making, especially in light of their recent choice for the new CEO of Bloomingdale's.
- The retail finance landscape is closely watching Macy's move, as they have appointed a foreign executive, Olivier Bron, to lead Bloomingdale's, an unusual step for the business.
- As the environment of the business world evolves, with factors such as war and climate change impacting industries, Macy's has chosen to seek new perspectives, bringing in Bron from Central Group's Central and Robinson Department Stores in Thailand.
- The current leadership at Macy's, such as Tony Spring and Gennette, have been with the company for several decades, leading some to question the need for a change in leadership at Bloomingdale's.
- While the appointment of an outsider like Bron could bring fresh ideas and innovation to Bloomingdale's, it also comes with risks, given the retailer's struggle with sluggish sales in a challenging economic climate.
- With Bron's extensive experience in international retail, particularly in the luxury market, there is potential for Bloomingdale's to expand their presence beyond the Middle East, where they currently have stores in Dubai and Kuwait.
- The leadership change at Bloomingdale's could have implications for the entire Macy's business, with experts suggesting that Macy's needs to be open to new ideas and willing to make necessary changes in order to adapt and grow in the evolving retail industry.
