Contemplating a CEO for Bloomingdale’s
One of retailing’s plum jobs — chief executive officer of Bloomingdale’s — has become vacant, and it isn’t an easy position to fill.
According to sources, Macy’s Inc., the parent of Bloomingdale’s, has been talking with potential candidates since before Bloomingdale’s former CEO Tony Spring officially advanced to president and CEO-elect of Macy’s Inc. in late March this year.
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Someone with a broad background, with experience in department stores, digital and luxury, would be ideal, though that’s a rare blend. Plus candidates need to meet the approval of Spring, who has a major part in determining his successor, as does Jeff Gennette, Macy’s Inc. chairman and CEO, who is retiring in February 2024.
After decades of retail industry consolidation, there’s a small talent pool of highly qualified retail leaders to draw from, raising the possibility that someone from specialty retail or outside the retail industry could be pursued for the job. At Macy’s Inc.’s Bluemercury division, Maly Bernstein was named CEO two years ago after serving as vice president of e-commerce at CVS Health, the pharmacy.
“It’s a broader commentary on the industry and who is left. Where is the talent?” said one retail source. “I don’t think Bloomingdale’s needs someone from CPG [consumer package goods]. So where do you go for candidates? The world of specialty retail perhaps, for someone qualified and with some earlier department store experience.”
“Tony is going to have a big say, but it will be bittersweet for him choosing his successor because he has been so emotionally attached to Bloomingdale’s,” where he spent his entire career, said another retail source. “It’s always tricky trying to fill your own job.”
According to someone close to Macy’s Inc., “Bloomingdale’s needs someone who has clear understanding of the omnichannel consumer. They were late in terms of developing an online business. Macy’s was maybe the earliest in the industry to develop an online business and it’s really strong…Product-wise, the niche that Bloomingdale’s does better than its competitors is with the upscale contemporary consumer. They have really dialed in on contemporary apparel and accessories. You want to make sure to continue that. Bloomingdale’s took a big piece of the Barneys business when it disappeared, which at one time was really strong in contemporary.”
“Bergdorf’s, Neiman’s and Saks are good in designer,” the source continued. “With contemporary, Bloomingdale’s has stepped on the accelerator. But never forget about the home furnishings business. Where does the Saks, Neiman’s and Nordstrom customer shop for home furnishings? Bloomingdale’s. The store dominates in high-end home furnishings and there’s more room to expand with that business. Bloomingdale’s needs someone who understands all of that.”
Proficiency at opening and operating stores would also be a consideration. With only 34 stores and 20 outlets there’s room for additional Bloomingdale’s in Texas, Arizona and the Northwest, where there are no Bloomingdale’s, and markets that already have Bloomingdale’s could be filled in with Bloomies units. Currently, two Bloomies are open and a third is opening soon. There are also opportunities overseas.
Within the department store sector, Bloomingdale’s has been getting the highest reviews from consumers, primarily for quality luxury and contemporary offerings, crisp displays and an energized shopping experience abetted by associations with pop culture. The business has been performing well, and seems destined for increased support from corporate for expansion, particularly since Spring spent his entire career at Bloomingdale’s, the last nine years as CEO and chairman. He knows the opportunities.
Macy’s Inc. has determined there’s no one inside Bloomingdale’s that could succeed Spring.
“They’ll be looking for a great general business manager with operational skills, who can expand a business, grow digital, prioritize initiatives and navigate the market. I don’t believe they’ll hire someone from a mid-tier retailer,” suggested another retail source. “It has to be someone who has a real appreciation for the brand.”
The store already has a strong, seasoned chief merchant in place, Denise Magid. She’ll report to Bloomingdale’s next CEO, and the general merchandisers report to her. Magid was most recently executive vice president and general merchandise manager for ready-to-wear, center core, concessions and Bloomingdale’s outlets.
Among those Macy’s Inc. could consider or at least consult with include Joshua Schulman, former Coach president and Bergdorf Goodman president; Marc Mastronardi, chief stores officer at Macy’s; Denise Incandela, Walmart U.S. executive vice president of apparel and private brands; Calvin McDonald, CEO of Lululemon; Marc Metrick, Saks.com CEO; Janet Hayes, CEO of Crate & Barrel, and Laura Alber, CEO of Williams-Sonoma Inc.
Schulman, former brand president and chief executive of Coach, departed in 2020 to join Farrow & Ball as non-executive director. Earlier, he served as the president of Bergdorf Goodman, a role he held from May 2012. Schulman immediately oversaw a period of renovation for the luxury department store, with major renovations occurring in both the women’s and men’s retail areas. Schulman is a former CEO of Jimmy Choo, held roles at Kenneth Cole New York, Gap Inc., and Gucci Group, where his most significant role was executive vice president of Yves Saint Laurent.
Mastronardi leads customer experience across Macy’s global enterprise including all store operations, selling services, staffing and call centers. He is considered strategic, an agile business leader with both operational and merchandise experience at Macy’s, and more than 25 years of experience in retailing, including as a general merchandise manager at Macy’s. He’s been involved in partnerships and business development.
Incandela’s responsibilities at Walmart U.S. include leading the apparel business in stores and online, and all general merchandise private brands. She is highly regarded at Walmart and could be a candidate to be the next Walmart U.S. chief merchandising officer in light of the retirement of Charles Redfield. Earlier in her career, she was CEO of Aerosoles, president of global digital for the Ralph Lauren Corporation, executive vice president and chief marketing officer of Saks Fifth Avenue, and a leader of the retail practice at McKinsey & Company.
Prior to becoming Lululemon CEO in 2018, McDonald spent five years as president and CEO of the Americas at Sephora. He also served as president and CEO of Sears Canada for two years and before that spent 17 years at Loblaw Companies Limited in Canada. He has a track record for leading organizations through periods of significant growth and innovation.
Metrick leaving Saks is highly unlikely, considering his long history and success there, and going to Bloomingdale’s could be considered a lateral move. Before taking over the leadership at Saks eight years ago, first as president and later as CEO, Metrick was executive vice president and chief administrative officer of the Hudson’s Bay Co., the parent of Saks. He was a key player in the re-engineering of Saks Fifth Avenue into separate stores and digital companies, and in HBC’s 2013 acquisition of Saks for $2.9 billion. Metrick is considered very analytical, witty and well-liked, with a deep understanding of merchandise allocation and planning processes, data mining, financial controls, business development and marketing, though he has experience in merchandising.
Hayes is a seasoned and veteran retail executive. Prior to becoming Crate & Barrel’s CEO, Hayes was president of Williams-Sonoma, president of Pottery Barn Kids, a senior vice president at Pottery Barn, and earlier worked at Nike as a general manager for men’s, women’s and kids’ sports culture, and Gap Inc. as a divisional merchandise manager.
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