"Strengthen Customer Relationships – We will build customer lifetime value, expand our loyalty program, and accelerate personalization and monetization"
What it means: Richard Lennox (CMO) has given up on acquiring new customers. New customers are too expensive to get and they don't stay around long enough to make it worth. Instead, we're going to launch Loyalty 3.0 to squeeze the very last juice of the existing aging and dwindling customers by giving up profit margin through perks. That is a less ghetto way than discounting everything to death.
"Curate Quality Fashion – We will drive disciplined merchandise category roles, be the best destination for the best brands, and balance sales and margin."
What it means: Yeah, our merchants have been s—ing for a very long time. Jeff (who used to be the best merchants ever) is now demanding Merch to launch 4 $1B private brands. Not 1, or 2, but 4! When did Macy's launch a $1B private brand? Hmmm, hmmm... doesn't matter, we can do it. Against all odds, we'll do it not just once but four times. Hey, our marketplace strategy is not working so we're gonna live and die by our decades-old merchants. Got nothing else to lean on.
Accelerate Digital Growth – We will improve the digital experience across both .com and our app, grow our omni-channel customer base, and improve profitability.
What it means: We'll run a traditional eCommerce site that has a home page, browse, search, pdp, cart, checkout, as cheaply as possible. That's really the extend of eCommerce. Sure, we'll push pixels around to improve UX. But that's it. After all, there are no more innovations to be had in eCommerce (/sarcasm)
Optimize our Store Portfolio – We will continue the Growth treatment for stores in the best malls, find ways to profitably expand off-mall, and test and prove a market ecosystem.
What it means: Well sh–, we wished we didn't double our stores back in 2005. What else do you expect me to do now besides closing down empty stores and slowly closing down stores until only the Top 20% remains? After all, we're merchants first, stores first company for 160 years and we will always have stores and merchants until we die. One day, the lack of stores and merchants will haunt and eventually k–l Amazon. Merchants and stores... they're forever.
Reset our Cost Base – We will right-size the organization and expense base, improve our working capital, including faster inventory turns, and balance top-line and bottom-line growth.
What it means: We get it. We are going to become a much smaller company. We're good at surviving. We're #1 when it comes to self preservation and cost cutting. Don't worry, pension funds, we'll keep paying those dividends. We'll do whatever we can to make you hold our stock. We're a turtle and we trust our shells to protect us from the retail armageddon.