Macy’s grapples with how to make its e-commerce business a stand-alone company

US retailer has asked consulting firm AlixPartners to review its business structure after it was urged to separate its e-commerce armMacy’s is grappling with how to make its e-commerce business a stand-alone company without losing customers who rely on its department stores to pick up or return items they bought online, according to people familiar with the deliberations.

AlixPartners also advised HBC, the owner of Saks Fifth Avenue, on the separation earlier this year of its e-commerce business from its department stores. Saks, on the other hand, has only about 40 stores, and the privately held company’s e-commerce business generates annual revenue of less than $1bn. That is a fraction of Macy’s e-commerce revenue, which is set to exceed $8bn this year, according to Morningstar analysts.

“The introduction of numerous service agreements to compensate stores would likely lower profitability,” Cowen analysts said in a note last month.The duplication of functions now housed under one roof, such as logistics and administration, would add to the costs, the sources said.

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