What: Former Hermès Americas CEO Robert Chavez joins Macy's board amid accelerated store closures and a $154 million accounting scandal, bringing luxury expertise to the retailer's transformation efforts.

Why it is important: Chavez's appointment reflects Macy's strategic pivot towards luxury retail expertise, crucial for its three-part transformation strategy that emphasises upmarket growth through Bloomingdale's and Bluemercury while managing core business challenges.

Macy's has appointed Robert Chavez, former Hermès Americas CEO, to its board of directors, marking a significant addition to its leadership team during a period of substantial transformation. Chavez, who led Hermès Americas for 24 years and saw the brand nearly double its revenues from 2019 to 2023, brings valuable luxury retail experience to Macy's. His appointment comes as the company grapples with multiple challenges, including the recent discovery of a USD 154 million bookkeeping scandal and accelerated store closure plans. The company's board has experienced considerable turnover, with the departure of Ashley Buchanan and William Lenehan, and Sara Levinson's upcoming retirement. While some industry experts question the relevance of Chavez's ultra-luxury experience to Macy's mass-market challenges, others suggest his different perspective could prove beneficial as the company implements its "Bold New Chapter" strategy. The appointment temporarily boosted Macy's stock before settling back to previous levels, reflecting investor uncertainty about the impact of a single board member on the company's broader challenges.

IADS Notes: Robert Chavez's appointment to Macy's board in January 2025 comes at a pivotal moment in the company's transformation journey. The appointment follows the implementation of the "Bold New Chapter" strategy launched in February 2024, which has shown mixed results through various initiatives. While the "First 50" stores programme demonstrated promising outcomes in October 2024 , the company had to accelerate its store closure timeline in December 2024, indicating ongoing challenges in the core business. Chavez's extensive luxury retail experience from Hermès could prove particularly valuable as Macy's continues to execute its three-part strategy announced in November 2024 , which emphasises luxury business expansion alongside store optimisation and operational modernisation. His appointment suggests a strategic focus on strengthening Macy's luxury credentials whilst navigating the complex transformation of its traditional department store model.

Former Hermès CEO Joins Macy’s Board As The Company Juggles Store Closures, Financial Scandal