Macy's fires top executive in charge of growth
Struggling department store operator Macy's said Friday that it has fired its chief growth officer Peter Sachse.
A 34-year Macy's employee, Sachse will leave the Cincinnati- and New York-based retail company Jan. 30. He will collect a $2.7 million lump sum payment as part of an "involuntary" severance package, benefits, a bonus and his stock awards will continue to vest into 2019.
Sachse is also subject to a three-year non-compete agreement.
Previously chief innovation and business development officer, Sachse had been in his current role for less than one year. His job was to supervise Macy's newest growth initiatives: off-price concept Macy's Backstage, beauty and spa concept Bluemercury as well as Macy's international expansion efforts. He also was responsible for overseeing the company's merchandising efforts.
Chief merchandising officer Tim Baxter, Bluemercury CEO Marla Malcolm Beck, Bluemercury chief operating officer Barry Beck, Macy's Backstage senior vice president Vanessa Lefebvre and Macy's China Limited managing director Dustin Jones all reported to Sachse.
Sachse had been considered a successor to Macy's CEO Terry Lundgren until Jeff Gennette was named president in 2014. Gennette begins his tenure as CEO within the next few months.
Sachse's departure comes after a disappointing holiday shopping season, where sales dipped more than 2 percent during November and December from a year ago. Last week, Macy's announced 68 store closures and the layoff of more than 10,000 store and corporate employees.
Macy's was a Wall Street darling in the years after the Great Recession as it managed to grow both sales and profits until 2015. Since the company's stock peaked at an all-time high of $73.61 in 2015, the company's stock price has been cut in half after several quarters of missed sales forecasts.