Macy's Inc. plans to eliminate the former Marshall Field's headquarters in Minneapolis as part of a move to consolidate regional offices and boost sales and cut costs.
As part of the closure, Macy's North chairman and CEO Frank Guzzetta, 62, a former Field's executive who has been focused on reviving the State Street flagship in Chicago, will retire in the spring as the division is melded into Macy's East in New York.
The department store chain said the restructuring will affect about 2,550 workers and save about $100 million a year starting in 2009.
Macy's North in Minneapolis, which is the former Field's division, will be merged into Macy's East in New York and affect about 950 positions. Macy's Midwest in St. Louis, which includes the former Famous-Barr and L.S. Ayres stores, will be combined with Macy's South in Atlanta and that will affect 850 positions. And Macy's Northwest in Seattle will fold into Macy's West in San Francisco, affecting 750 positions.
The regional headquarters are a holdover from the many regional department store chains Macy's acquired when it bought May Department Stores Co. in 2005. In lieu of the regional headquarters, Macy's will set up regional offices in Chicago, Cincinnati, St. Louis and Seattle.
Macy's Chairman and CEO Terry Lundgren said in a prepared statement that the reorganization is aimed at improving sales and earnings and "will speed up decision making and simplify the process of working with our vendors."
22 hours ago