Macy's names new president, cuts about 100 jobs

Beleaguered mall stalwart Macy's is eliminating about 100 jobs as it consolidates its merchandising, planning and private brands operations into one department.

It has also named a former eBay executive, Hal Lawton, as its new president.

The consolidation will save the company an estimated $30 million a year, including approximately $5 million, or 1 cent per share, for the the fourth quarter of 2017. According to Macy's, the change will mean one-time costs of approximately $20 million to $25 million, mostly in the third quarter.

Macy's stock rose 51 cents, or 2.6%, to $19.53, in pre-market trading Tuesday.

Retailers from J.C. Penney and Sears, to Gander Mountain and The Limited are closing locations as more shoppers buy online and visits to the mall dwindle. And Macy's, an iconic department store chain, has been one of the most vivid examples of how traditional retailers who once dominated the shopping landscape are struggling to reinvent themselves.

After an earnings report last week that predicted total sales for the full year will be 3.2% to 4.3% lower than in 2016, Macy's CEO Jeff Gennette told investors that the current retail environment creates "a great sense of urgency'' for the company to innovate at a more rapid pace. 

The new Macy's president, Lawton, was most recently senior vice president at eBay North America and previously worked for The Home Depot and McKinsey & Co. He starts on Sept. 8.

Gennette praised Lawton's "deep expertise at the intersection of retail and technology, a diverse set of business experiences that give him a unique perspective, and a track record of successfully driving a change agenda at scale."

"This is a key step," he added, "as we look to further transform the business and work through the volatility of today’s retail landscape."

Related:

Sears, J.C. Penney, Kmart, Macy's: These retailers are closing stores in 2017

Macy's sales slide continues as retailer preps new marketing

Malls become models of reinvention to cope with closing stores

Why Nordstrom is bucking the trend in department stores

That landscape has been rocky industry-wide, as consumers continue to opt for online shopping over traditional brick-and-mortar stores. Hit especially hard are shopping malls -- home to many Macy's across the United States, where the giant department store often anchors local shopping centers.

Gordon Haskett analyst Chuck Grom said the Lawton hire could be a wise move for Macy's.

He called Lawton "arguably one of the most interesting outside additions to the entire department store space, let alone Macy’s, over the past decade. One has to think that the addition of Mr. Lawton will bring a fresh perspective – one that is arguably long overdue.  All told, while the move won’t impact sales or profitability overnight, we think the addition could mark the beginning of a new chapter for Macy’s."

Related:

Follow USA TODAY reporter Zlati Meyer on Twitter: @ZlatiMeyer