Macy's
| File:Macy's logo.svg Logo used since 2006 | |
| Company type | Subsidiary |
|---|---|
| Industry | Retail (department store) |
| Founded | 28 October 1858 in New York City, United States |
| Founder | Rowland Hussey Macy |
| Headquarters | Cincinnati, Ohio , United States |
Area served | United States (including Puerto Rico and Guam) |
| Products | Clothing, footwear, bedding, furniture, jewelry, beauty products, housewares |
Number of employees | 94,000 (2023) |
| Parent | Macy's, Inc. |
| Website | macys |
Macy's is a prominent American department store chain that was established in 1858 by Rowland Hussey Macy. The inaugural store was situated in Manhattan on Sixth Avenue between 13th and 14th Streets, just south of the present-day flagship located at Herald Square on West 34th Street, which opened in 1902. Growth beyond the New York metropolitan area was achieved primarily through the acquisition and conversion of regional department stores, especially after Macy's became part of Federated Department Stores in 1994. The brand’s nationwide footprint was further strengthened with the 2005 purchase of The May Department Stores Company, leading to the rebranding of those outlets as Macy's in 2006 and Federated’s subsequent rebranding to Macy's, Inc. in 2007. Macy's operates alongside its sister brands, including Bloomingdale's and Bluemercury.
As the leading department store operator in the United States by retail revenue, Macy's employs approximately 94,000 individuals and reported $25.3 billion in sales . It oversees around 450 stores across the U.S., including locations in territories such as Puerto Rico and Guam. The Herald Square flagship is one of the largest department stores globally, boasting roughly 1.25 million square feet of retail space and an estimated worth of $3 billion. Macy's is also recognized for organizing major promotional events like the annual Macy's Thanksgiving Day Parade, which has been held since 1924, and sponsoring New York City’s Macy's 4th of July Fireworks since 1976.
19th century history
Between 1843 and 1855, Rowland Hussey Macy launched four dry goods retail establishments, including the original Macy’s store founded in downtown Haverhill, Massachusetts in 1851, targeting workers from nearby mills. Despite early setbacks, Macy refined his approach and officially founded "R. H. Macy & Co." in 1858 on Sixth Avenue in New York City, situating the store north of competing retailers at that time. On its first day of business, sales reached $11.08 (equivalent to $ today). Initially, the store used a rooster as its logo before switching to a red star emblem in 1862.
Macy’s growth involved acquiring neighboring properties and expanding its range of departments. The company introduced innovative marketing techniques such as employing a store Santa Claus, themed window displays, and illuminated exhibitions to draw shoppers. While offering a money-back guarantee from early on, it only accepted cash payments until the mid-20th century. Additionally, Macy’s operated an on-site factory that produced custom-tailored clothing for both men and women.
In 1875, Macy formed a partnership with Robert M. Valentine and Abiel T. La Forge, relatives who played key roles in expanding the business. After Macy passed away in 1877 due to kidney disease—and following the deaths of his partners by 1879—the company remained under family control until 1895. That year marked a pivotal change when Isidor and Nathan Straus, who had previously held a license to sell china at Macy’s, purchased "R. H. Macy & Co.", initiating new leadership and strategic directions for the company.
Establishment of Macy's Herald Square
In 1902, Macy's moved its main store to Herald Square, located at the intersection of 34th Street and Broadway, positioning itself notably farther north than other prominent dry goods retailers of the time. To draw in shoppers, the company introduced a steam-powered wagonette service originating from 14th Street. Over time, the Herald Square location expanded to cover almost the entire block bordered by Seventh Avenue, Broadway, 34th Street, and 35th Street, with the exception of two small existing structures. One of these buildings was acquired in 1900 by Robert H. Smith, presumably representing rival Siegel-Cooper, in an attempt to hinder Macy's growth. Macy's responded by constructing around this property and leasing it for use as a "shopping bag" advertising sign.
The original store, completed between 1901 and 1902 by De Lemos & Cordes and built by the Fuller Company, showcases a Palladian-style facade. Subsequent Art Deco enhancements were added in 1924, 1928, and 1931 under architect Robert D. Kohn. In 2012, Macy's committed roughly $400 million to an extensive overhaul of the Herald Square flagship, overseen by Studio V Architecture. This renovation introduced upscale retail brands such as Gucci and Burberry but ignited discussions about balancing preservation of historic design elements with modern updates.
Acknowledged for both its architectural and historical importance, the building was placed on the National Register of Historic Places and designated a National Historic Landmark in 1978. Today, this flagship store continues to serve as a crucial component of Macy's worldwide retail operations.
Expansion across the nation
Macy's opened its inaugural branch beyond the 34th Street flagship on October 13, 1941, at Parkchester in The Bronx. The company's national growth was fueled by acquiring regional department stores including Lasalle & Koch (Toledo, 1923), Davison-Paxon-Stokes (Atlanta, 1929), L. Bamberger & Co. (Newark, 1929), O'Connor Moffat & Company (San Francisco, 1945), and John Taylor Dry Goods Co. (Kansas City, 1947). O'Connor Moffat was renamed Macy's San Francisco in 1947 and later became Macy's California; John Taylor was rebranded as Macy's Missouri-Kansas in 1949. The Toledo outlets retained the Lasalle's name until their integration into Macy's Midwest in 1981; they were eventually sold to Elder-Beerman in 1986.
In 1965, a substantial branch was established on Queens Boulevard in Elmhurst, Queens. Due to a single homeowner’s refusal to sell their land parcel, this store was uniquely designed as a circular building occupying about ninety percent of the site. This structure has since been transformed into Queens Place Mall, with Macy's Furniture Gallery continuing as one of its tenants.
Starting in 1983, Macy's extended its reach beyond New York City and Long Island by opening stores at locations including Aventura Mall (Florida), Plantation (Florida), Houston, New Orleans, and Dallas. In early 1985, Davison's in Atlanta was rebranded as Macy's Atlanta amid consolidation with an earlier Macy's Midwest division (covering Kansas City and Toledo stores), although the Midwest locations were divested later that year. Following significant growth throughout New Jersey and into Greater Philadelphia and Baltimore markets, Bamberger's was renamed Macy’s New Jersey in 1986.
1992 Bankruptcy
Edward Finkelstein, serving as Chairman and CEO of R. H. Macy & Co., Inc. in 1986, orchestrated a leveraged buyout and attempted to acquire Federated Department Stores, Inc. in 1988, but was outbid by Canada's Campeau Corporation. The resulting agreement led Macy's to take ownership of Federated’s California divisions: Bullock's, Bullocks Wilshire, and I. Magnin. Subsequently, Macy's restructured into three operational segments: Macy's Northeast, Macy's South/Bullock's, and Macy's California. In 1989, Bullocks Wilshire was rebranded as I. Magnin.
On January 27, 1992, R. H. Macy & Co., Inc. filed for Chapter 11 bankruptcy protection. Under new leadership appointed by creditors, the company shuttered poorly performing locations, reduced the luxury I. Magnin chain by two-thirds, and streamlined its structure into two main divisions: Macy's East and Macy's West.
Macy's East, based in New York City, represents the continuation of the original R.H. Macy & Co., overseeing stores throughout the northeastern United States and Puerto Rico. Previously identified as Macy's New York and Macy's Northeast, it expanded on February 1, 2006, by incorporating Filene's, Strawbridge's, numerous Kaufmann's outlets in upstate New York, and Hecht's stores located in Pennsylvania, Maryland, Washington D.C., and northern Virginia; all were rebranded as Macy’s by September 9, 2006. Furthermore, in 2008, Macy’s East absorbed the operations of the Macy’s North division.
In May 1993, Macy’s revealed plans to introduce TV Macy’s—a home shopping network created in collaboration with Don Hewitt, Thomas Leahy, and Cablevision—to broaden its retail footprint via broadcast media.
1994 Acquisition by Federated
In December 1994, R. H. Macy & Co. merged with Federated Department Stores, relocating its headquarters to Cincinnati, Ohio. Federated discontinued the remaining I. Magnin outlets, converting some into Macy’s or Bullock’s stores while selling four locations to Saks Fifth Avenue. The Abraham & Straus/Jordan Marsh division was consolidated into Macy’s East; by 1995–96 Abraham & Straus stores in metropolitan New York were rebranded as Macy’s, and the Jordan Marsh name was phased out across New England.
Mid-1995 saw Federated lose a bid for bankrupt Woodward & Lothrop/John Wanamaker to competitor The May Department Stores Company. Instead, Federated acquired Broadway Stores, Inc., owned by Sam Zell, enhancing its presence in California, Arizona, Nevada, and New Mexico markets. By early 1996 Broadway Stores were dissolved; most were merged into Macy's West, retiring the Bullock’s brand. Several overlapping stores were converted into Bloomingdale's on the West Coast or sold to Sears, reinforcing Federated’s position within key regional markets.
21st Century History
In 2000, Macy's entered the U.S. territory of Puerto Rico by opening a location at Plaza Las Américas mall in San Juan.
Federated dissolved its Stern's division in the New York metropolitan area in 2001, integrating most of those outlets into Macy's East. That same July, Federated acquired the Liberty House chain operating in Hawaii and Guam and merged it with Macy’s West.
By early 2003, Federated closed most of its historic Davison's stores in Atlanta; remaining locations were rebranded as Rich's–Macy's. The original flagship downtown store was closed while Lenox Square and Perimeter Mall locations were renovated and relaunched as Atlanta’s inaugural Bloomingdale's outlets. Comparable rebrandings followed for other regional banners such as Burdines, Goldsmith's, Lazarus, and The Bon Marché.
On March 6, 2005, these regional brands—including Bon-Macy's, Burdines-Macy's, Goldsmith's-Macy's, Lazarus-Macy's, and Rich's–Macy's—were unified under the single Macy’s brand name. By mid-2005, Macy’s operated a total of 424 stores across the country.
2005 Acquisition of May by Federated
On February 28, 2005, Federated announced its intention to purchase The May Department Stores Company in an $11 billion stock deal, forming a retail powerhouse generating $30 billion in annual revenue and operating more than 1,000 outlets.
By July of that year, Federated revealed plans to rebrand 330 regional May Company stores—including Kaufmann's, Famous-Barr, Filene's, Foley's, Hecht's, The Jones Store, L. S. Ayres, Meier & Frank, Robinsons-May, and Strawbridge & Clothier—under the Macy’s name, pending regulatory clearance. Later in 2005, the rebranding effort expanded to include Marshall Field's.
This transition met with resistance in cities such as Chicago, where longtime department stores held significant sentimental value. The renaming of Filene’s, Marshall Field’s, and Kaufmann’s provoked customer dissatisfaction and public objections from notable figures like film critic Roger Ebert.
In January 2006, Federated declared its intention to sell May Company's Lord & Taylor division. The transaction with NDRC Equity Partners for $1.2 billion was finalized by October 2006.
Following these conversions, by September 2006 Macy’s operated roughly 850 locations across the United States. To celebrate this growth, Macy’s launched a nationwide marketing campaign featuring a rendition of "Dancing in the Street" and introduced "Parade on Parade," showcasing props from its Thanksgiving Day parade at various store sites.
In October 2006, Federated collaborated with Zoom Systems to test over 100 electronic retail kiosks inside Macy’s stores to improve customer access to gadgets such as iPods. Eventually, all Electronics departments were transformed into eSpot ZoomShops.
Throughout 2006 and 2007, Macy’s amplified its television advertising efforts and product placements prominently displaying its star emblem. Notably, several Macy’s locations appeared on the ABC series Desperate Housewives, reflecting strategic brand integration.
On February 27, 2007, Federated announced a corporate name change to Macy’s Group, Inc., effective June 1. By March 28, the company confirmed its stock ticker would switch from "FD" to "M" and finalized the new corporate identity as Macy's, Inc. Shareholders approved this change on May 18; the enterprise continues operating under both Macy’s and Bloomingdale’s banners.
In March 2009, Macy’s unveiled a new concept store in Gilbert, Arizona—designed specifically for open-air lifestyle centers with a smaller footprint tailored to regional markets as part of the "My Macy’s" initiative. Additional lifestyle-format stores opened in Texas, Missouri, and Idaho featuring amenities such as Starbucks cafés and lounge-style fitting rooms to elevate the shopping experience and align with evolving retail trends.
2010s
On October 28, 2014, Macy's, Inc. extended its lease and operational partnership with Al Tayer Group LLC to launch its inaugural international Macy’s store in Abu Dhabi. This location would anchor a new shopping mall alongside Bloomingdale's second international branch; both were slated for a 2018 opening. In that year, Macy's ranked as the 15th-largest retailer in the U.S. by revenue.
In January 2015, Macy’s announced plans to shutter 14 stores nationwide while reallocating approximately 830 employees from Macy’s and Bloomingdale’s locations. That July marked the sale of the former Kaufmann's flagship store in Downtown Pittsburgh after serving customers for 128 years. In May 2015, Macy's joined the American Express-supported Plenti rewards program alongside prominent brands like AT&T and ExxonMobil.
By September 2015, Macy's intended to close an additional 35 to 40 underperforming outlets by early 2016. The company reported a same-store sales decline of 5.2% during the critical holiday period and disclosed plans to reduce workforce by up to 4,800 positions targeting $400 million in cost savings. As of January 2016, Macy's maintained operations at approximately 770 stores.
On August 11, 2016, Macy's announced intentions to close around 100 stores in early 2017 aiming to cut costs by $550 million annually while eliminating more than 10,000 jobs. Concurrently, it planned investments totaling $250 million toward e-commerce expansion and growth initiatives for remaining locations. By January 2018, specific sites for closure had been identified for 81 of these stores.
In September 2016, Macy's became the first department store to incorporate an Apple Store within its flagship outlet amidst ongoing sales declines and store shutdowns. Early January 2017 saw a sharp drop of approximately 14% in Macy’s share price. The following month brought a takeover offer from Hudson's Bay Company amid challenges facing the retail sector.
During May and June of 2018, Macy's broadened its business approach by acquiring experiential retailer Story and taking a minority stake in b8ta—a retail-as-a-service platform. By February 2019, Macy’s operated a total of 867 locations across various brands including Macy’s (641 stores: 584 full-line and 57 specialty), Backstage, Bloomingdale’s, Bluemercury, and Story.
In November of that year, Macy’s piloted smaller "neighborhood" store formats designed to lower expenses while fostering innovation in customer experience. In the same year, the company ranked #120 on the Fortune 500 list based on revenue. Former CEO Jeff Gennette spearheaded the Growth150 strategic plan aimed at revitalizing store operations.
Despite these initiatives, Macy’s stock declined over 13% during Q2 of 2019 reaching its lowest point since February 2010 at $15.82 per share on August 14.
2020s
Following an extensive two-year study, Macy's declared in 2019 its intention to discontinue the sale of fur products by the close of fiscal year 2020, aligning its policy with California's prohibition on such merchandise. In 2020, the company shut down its Cincinnati headquarters, centralizing its operations in New York City. In 2021, activist investment firm JANA Partners revealed a substantial equity position and advocated for the separation of Macy's e-commerce division; in response, Macy’s enlisted AlixPartners to conduct a strategic review of its organizational framework. By the end of 2021, JANA Partners had divested approximately 84% of its shares.
August 2021 saw Macy's collaborate with Toys "R" Us to introduce toy boutiques within more than 400 stores starting in 2022. Later that year, in November, Macy's initiated a complimentary educational program and increased its corporate minimum wage to $15 per hour as part of efforts to improve employee retention.
In February 2023, under pressure from PETA, Macy's halted the sale of exotic leather items. On December 4, 2023, a tragic stabbing incident occurred at Macy's flagship location in Philadelphia.
By January 2024, Macy's declined a $5 billion acquisition proposal from Arkhouse Management and Brigade Capital Management. Sycamore Partners also showed interest in purchasing the retailer. In February 2024, Macy's announced plans to shutter up to 150 underperforming stores by 2026—initially closing 50 by the end of 2024 and later increasing this number to 65—representing roughly 10% of total sales volume. The company intends to prioritize growth in Bloomingdale's (45 outlets) and Bluemercury (30 outlets) while renovating an additional 30 Bluemercury locations.
By January 2025, Macy's scheduled the closure of 66 stores as part of its strategic realignment, including major sites in Philadelphia and Brooklyn.
Macy's
- Macy's – a department store chain predominantly located within shopping malls; multiple units within the same complex often focus on specific product categories such as:
- Women and Children
- Furniture Clearance
- Furniture Gallery
- Furniture and Kid's
- Furniture and Men's
- Furniture, Home, Kids, and Men's
- Furniture, Home, and Men's
- Furniture, Kids, and Men's
- Home, Kids, and Men's
- Home, Kids, and Women's
- Home and Men's
- Kid's and Men's
- Men's
Macy's Backstage
- Macy's Backstage – off-price shops embedded within 319 full-line Macy's stores plus nine standalone locations. This format features brands like Authentic Brands Group’s Izod and Arrow as well as Ralph Lauren’s Chaps that are not consistently available at full-line Macy’s stores.
Flagship stores
As of , Macy’s operates three flagship locations, many of which originated from regional department stores acquired by Federated.
| State | City | Name | Size | Year opened | Year closed | Notes |
|---|---|---|---|---|---|---|
| California | San Francisco | Macy's Union Square | 700,000 square feet (65,000 m2) | 1947 | Template:N/A | Initially O'Connor, Moffat & Co., later I. Magnin and Liberty House |
| Georgia | Atlanta | Macy’s Downtown Atlanta | 338,000 square feet (31,400 m2) | 1927 | 2003 | Former Davison’s location |
| Illinois | Chicago | Macy’s State Street | 300,000 square feet (28,000 m2) | 1876 | Template:N/A | Converted from Marshall Field’s |
| Minnesota | Minneapolis | 1902 | 2016 | Former Dayton’s store | ||
| Minnesota | Saint Paul | Macy’s Downtown St. Paul | 362,000 square feet (33,600 m2) | 1963 | 2013 | Converted from Dayton’s |
| New York | New York City | Macy’s Herald Square | 1.25 million square feet (116,000 m2) | 1902 | Template:N/A | |
| Oregon | Portland | Macy’s Downtown Portland | 208,520 square feet (19,372 m2) | 1909 | 2017 | Former Meier & Frank site |
| Pennsylvania | Philadelphia | Macy’s Center City | 1,367,838 square feet (127,076.3 m2) (peak) | 1861 | 2025 | Converted from Wanamaker’s; currently occupies three floors in the Wanamaker Building |
| Washington | Seattle | 864,000 square feet (80,300 m2) | 1929 | 2020 | Converted from The Bon Marché |
Criticism and controversy
Macy's has encountered multiple disputes concerning allegations of discriminatory conduct. In July 2003, the then–New York State Attorney General Eliot Spitzer launched an inquiry into Macy's use of private security methods targeting suspected shoplifters, following a civil rights lawsuit and a The New York Times exposé detailing practices such as private detention and interrogation. The investigation revealed that Macy's engaged in unlawful ethnic profiling and the use of handcuffs on detainees. By 2005, Macy's resolved the matter with a $600,000 settlement, acknowledging the cessation of these illegal practices while affirming the continuation of its security protocols.
In June 2006, under pressure from an anti-same-sex marriage organization, Macy’s Boston location removed two mannequins and the Web address of the AIDS Action Committee from a window display that celebrated Boston’s annual gay pride event. This action led to widespread public criticism, including rebuke from Boston mayor Thomas Menino. Ron Klein, chairman of Macy’s East, issued an apology attributing the incident to "an internal breakdown in communication" and reiterated the company’s dedication to inclusivity. While the Web address was reinstated, the mannequins remained absent.
In 2014, Macy’s agreed to pay $650,000 to settle accusations of racial profiling against minority shoppers within its stores after initially shifting blame to the NYPD despite profiling taking place on Macy’s property. Subsequently, in 2017, former employees filed a lawsuit alleging that staff at the flagship Herald Square store were instructed to avoid selling merchandise to customers who appeared Asian. The following year, Macy’s settled a disability discrimination claim for $75,000 after allegedly terminating an employee with asthma due to health-related absences.
In 2024, Macy’s postponed its third-quarter earnings announcement and related conference call after uncovering an internal scheme by employees that concealed approximately $132–155 million in expenses without providing any explanation.