The mood today at Macy’s Inc.’s annual shareholders meeting was upbeat, as the Cincinnati-based department store operator came off what CEO Terry Lundgren called one of its best quarters ever.
Lundgren focused on the growth Macy’s (NYSE: M) recorded last year, a result of the steps the company took from 2005 to 2009.
“The good news is that we are beginning to see the very positive results from the remodeling of out company,” Lundgren said in a speech from the 21st floor of Macy’s downtown Cincinnati headquarters. “We had an absolutely terrific year in 2010, as well as an outstanding first quarter of 2011, at both Macy’s and Bloomingdale’s.”
Among Lundgren’s highlights:
• The My Macy’s localization program, which tailors stock at stores to meet demand, remains a competitive advantage for Macy’s.
• Omnichannel integration, which combines in-store sales with Internet and mobile technology, is offering shoppers a way to find products regardless of their shopping preference.
• The company continues to use exclusive merchandising, like Kenneth Cole Reaction, Sean John men’s sportswear and Material Girl, a juniors collection from Madonna and her daughter Lourdes, to give customers the ability to buy products at Macy’s that aren’t available anywhere else.
• And, a multimillion-dollar program Macy’s calls Magic Selling is training 130,000 employees to better help customers.
Only two shareholders voiced their opinion during the roughly half-hour meeting, both praising the job Macy’s has done coming out of the recession.
An issue that has been brought up at shareholders meetings in the past was the rebranding of Marshall Fields stores in Chicago to Macy’s. Jim McKay, a shareholder from Chicago, first praised the year Macy’s had, then said there remains overwhelming support in the Chicago area to bring back the Marshall Fields name.
“It’s more than a department store,” he said. “It’s our hometown store.”
Lundgren said he appreciated the respectful approach McKay took, but felt the company made the right decision in rebranding the stores as Macy’s.
Another shareholder and customer, Jim White IV, thanked a Macy’s security employee who called him at home to let him know someone was trying to open a credit card account with his identification and purchase $2,700 worth of items.
“I want to show my respect and appreciation to Macy’s Inc. for its great security,” White said. “They’re really going the extra mile to get results and protect their customers.”
Shareholders approved four items and decided on a fifth, which included:
• The election of 10 members to Macy’s board of directors, with each member being approved by at least 85 percent of the votes;
• Ratification of KPMG LLP as Macy’s independent registered public accounting firm, with 98.5 percent of the votes;
• Removal of the requirement of plurality voting for directors, with 87.6 percent of the votes;
• An advisory vote on executive compensation with 65.2 percent of the votes; and
• And 71.4 percent of shareholders agreed to cast on executive compensation every year.
After the meeting in an informal lunch with reporters, Lundgren said Macy’s will continue to add its Bloomingdale’s outlet stores but will not open a line of Macy’s outlet stores because the difference in price points would not be that large. In fact, he said it’s possible a traditional Macy’s location would open in or near an outlet shopping center.
“The value we provide day in and day out is very competitive,” Lundgren said.
One area where Macy’s has the opportunity to improve its market share is with young customers. There is room for Macy’s to add young customers in apparel, handbags, shoes, cosmetics and men’s, he said.
Lundgren focused on the growth Macy’s (NYSE: M) recorded last year, a result of the steps the company took from 2005 to 2009.
“The good news is that we are beginning to see the very positive results from the remodeling of out company,” Lundgren said in a speech from the 21st floor of Macy’s downtown Cincinnati headquarters. “We had an absolutely terrific year in 2010, as well as an outstanding first quarter of 2011, at both Macy’s and Bloomingdale’s.”
Among Lundgren’s highlights:
• The My Macy’s localization program, which tailors stock at stores to meet demand, remains a competitive advantage for Macy’s.
• Omnichannel integration, which combines in-store sales with Internet and mobile technology, is offering shoppers a way to find products regardless of their shopping preference.
• The company continues to use exclusive merchandising, like Kenneth Cole Reaction, Sean John men’s sportswear and Material Girl, a juniors collection from Madonna and her daughter Lourdes, to give customers the ability to buy products at Macy’s that aren’t available anywhere else.
• And, a multimillion-dollar program Macy’s calls Magic Selling is training 130,000 employees to better help customers.
Only two shareholders voiced their opinion during the roughly half-hour meeting, both praising the job Macy’s has done coming out of the recession.
An issue that has been brought up at shareholders meetings in the past was the rebranding of Marshall Fields stores in Chicago to Macy’s. Jim McKay, a shareholder from Chicago, first praised the year Macy’s had, then said there remains overwhelming support in the Chicago area to bring back the Marshall Fields name.
“It’s more than a department store,” he said. “It’s our hometown store.”
Lundgren said he appreciated the respectful approach McKay took, but felt the company made the right decision in rebranding the stores as Macy’s.
Another shareholder and customer, Jim White IV, thanked a Macy’s security employee who called him at home to let him know someone was trying to open a credit card account with his identification and purchase $2,700 worth of items.
“I want to show my respect and appreciation to Macy’s Inc. for its great security,” White said. “They’re really going the extra mile to get results and protect their customers.”
Shareholders approved four items and decided on a fifth, which included:
• The election of 10 members to Macy’s board of directors, with each member being approved by at least 85 percent of the votes;
• Ratification of KPMG LLP as Macy’s independent registered public accounting firm, with 98.5 percent of the votes;
• Removal of the requirement of plurality voting for directors, with 87.6 percent of the votes;
• An advisory vote on executive compensation with 65.2 percent of the votes; and
• And 71.4 percent of shareholders agreed to cast on executive compensation every year.
“The value we provide day in and day out is very competitive,” Lundgren said.
One area where Macy’s has the opportunity to improve its market share is with young customers. There is room for Macy’s to add young customers in apparel, handbags, shoes, cosmetics and men’s, he said.
