Macy’s Inc. announced a series of initiatives to evolve its business model and invest in continued growth opportunities as consumers change the way they shop. These initiatives are accompanied by several changes concerning employment contracts and the existence of Macy’s and Bloomingdale’s stores.

"Our business is rapidly evolving in response to changes in the way customers are shopping across stores, desktops, tablets and smartphones. We must continue to invest in our business to focus on where the customer is headed - to prepare for what's next," said Terry J. Lundgren, Macy's chairman and chief executive officer. "Macy's, Inc. has benefited in recent years by having invested early and aggressively in our M.O.M. strategies (My Macy's localization, Omnichannel integration and Magic Selling customer engagement). (…) We remain committed to M.O.M. as our strategic roadmap.”

Moving forward with this business model, there will be one unified merchandising and marketing organization, instead of separate organizations for store and online assortments at Macy’s and Bloomingdale’s, to support the entire business and to encourage store and digital growth.

Macy’s Inc. will furthermore discontinue district planner positions and reinvest in new regional teams responsible for specific themes of merchandise localization. These changes are expected to affect about 115 associates in Macy’s and Bloomingdale’s central offices in New York, as well as 150 in local markets nationwide. Staff at the Macy’s and Bloomindale’s stores will also be cut by a total of 2,200 associates nationwide.

The company also announced the closing of 14 Macy’s stores in early spring 2015, reducing the number of stores from 790 to 776. Those stores account for approximately $130 million in annual sales.

Macy’s plans for 2015 include creating a team within the company to explore potential opportunities for a Macy’s off-price business, continuing their actions in digital retailing and further developing their website Additionally, Macy’s Inc. will be opening further stores starting fall 2015 (Ponce, Puerto Rico) and continuing with further openings until 2018 in San Jose, California (fall 2017) and Abu Dhabi (2018).

Furthermore, Leslie D. Hale, executive vice president, chief financial officer and treasurer of RLJ Lodging Trust, one of the largest publicly-traded real estate investment trusts focused on the lodging sector, has been elected to the Macy’s Inc. board of directors. She previously acted as RLJ's chief financial officer and senior vice president for real estate and finance, and used to serve as an investment banker at Goldman, Sachs & Co.

"Leslie Hale is an accomplished executive with exceptional experience in a wide range of financial disciplines, including corporate finance, treasury, real estate and business development. She will be a tremendous asset to our board's deliberations as we develop strategies to propel our company's continued growth," said Terry J. Lundgren.