Macy's Appoints Former Hermès CEO Amid Financial Scandal and Accelerated Store Closures

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Macy's has recently appointed Robert Chavez, the former president and CEO of Hermès Americas, to its board of directors. Chavez brings 24 years of experience in luxury retail, which is expected to provide valuable insights as Macy's navigates its current challenges.

The company is dealing with a significant financial scandal involving a former employee who intentionally hid $151 million in delivery expenses over several years. This fraudulent activity was discovered in November 2024 and has led to a series of adjustments in Macy's financial statements and an enhanced internal control structure to prevent future occurrences.

In addition to the financial scandal, Macy's is accelerating its store closure strategy. The company had initially planned to close 150 "underproductive" stores by 2026 but has now increased the number of closures to 65 within a year, with 15 more stores added to the list in December 2024. This move is part of Macy's broader effort to streamline its operations and focus on more profitable locations.

Overall, the appointment of Robert Chavez is seen as a strategic move to leverage his expertise in luxury retail to help Macy's recover from its financial mismanagement and adjust to its new operational focus.