• Women’s Wear Daily, Wednesday, February 6, 2008 11:45 AM

Speculation is mounting that Macy's is looking to downsize its network of seven regional operations to three or four, and to cut back central staff at the Cincinnati headquarters. There was also speculation yesterday that the retailer is planning a major overhaul of its Herald Square flagship.

Sources say the Miami-based Macy's Florida could fold into Macy's South, based in Atlanta. Macy's North in Minneapolis could fold into Macy's East, based in Manhattan, and Macy's Northwest, based in Seattle, could fold into Macy's West in San Francisco. A seventh regional office in St. Louis appears to be safe.

A downsizing of its regional operations would bring Macy's closer to operating as a true national chain, similar to how competitors such as J.C. Penney, Target, Gap, Limited Brands and Kohl's function. But a restructuring would to some degree mark a strategy reversal by Macy's chairman, CEO and president, Terry Lundgren, on the need to maintain regional offices.

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