The May Department Stores Company
| Company type | Public |
|---|---|
| Industry | Retail (Department stores) |
| Founded | 1877 |
| Founder | David May |
| Defunct | 2005 |
| Fate | Acquired by Federated Department Stores; stores rebranded as Macy's |
| Headquarters | St. Louis , United States |
| Products | Department stores |
The May Department Stores Company was a United States-based holding company specializing in department stores, established in 1877 by David May. It managed numerous regional department store brands as separate business units nationwide. In 2005, the company was purchased by Federated Department Stores, with the remaining outlets rebranded as Macy's in 2006.
History
Originating in 1877 in Leadville, Colorado, the enterprise relocated its main office to Denver in 1889 and later to St. Louis, Missouri in 1905. After incorporation in 1910, May expanded through various acquisitions including E. R. Hull & Dutton Co. (renamed May Company Ohio) in 1899; The Famous Clothing Store and William Barr Dry Goods Company merged into Famous-Barr in 1911; M. O'Neil Co. joined in 1912; and A. Hamburger & Sons Co. (known as May Company California) was acquired in 1923.
Following World War II, the company continued its growth by acquiring Kaufmann's (Pittsburgh) in 1946, Strouss-Hirshberg Co. (Ohio) in 1947, incorporating Daniels & Fisher Company into the May-Daniels & Fisher division by 1956, rebranding Cohen Brothers (Jacksonville) as May Cohens in 1958, obtaining Hecht's (Baltimore) in 1959, G. Fox & Co. (Hartford) in 1965, and Meier & Frank (Portland) in 1966.
Morton May, the founder’s grandson and chairman from 1951 until 1967, oversaw significant corporate expansion and was recognized for his community engagement and support of the St. Louis Art Museum. In 1968, with guidance from John F. Geisse—co-founder of Target—the company introduced Venture Stores to challenge discount retailers amid antitrust constraints that limited further acquisitions.
During the late 1970s, May divested its Consumers chain to Canadian Consumers Distributing and eventually exited that market by 1996.
A pivotal acquisition took place in 1986 when May acquired Associated Dry Goods, incorporating prominent chains such as J.W. Robinson's, Lord & Taylor, Caldor, L.S. Ayres, among others—representing the largest retail purchase at that time. Subsequent strategic adjustments included rebranding May-Cohens as May Florida and selling Robinson’s Florida locations to Maison Blanche to strengthen market positioning.
Throughout the 1990s, operational efficiencies were pursued through consolidations: merging May Company California with J.W. Robinson's into Robinsons-May (1993); integrating G. Fox into Filene's; transferring May Company Ohio to Kaufmann's; and combining May D&F stores with Foley's. The company further expanded by acquiring John Wanamaker (1995), Strawbridge's (1996), The Jones Store (1998), and Zions Cooperative Mercantile Institution (1999).
In 2000, diversification efforts included acquiring David's Bridal. Meier & Frank extended into Utah by absorbing ZCMI in 2001; concurrently, Hecht’s entered the Nashville market through acquisition of Proffitt’s stores. Operational streamlining continued with Meier & Frank merging with Robinsons-May and Kaufmann's joining Filene’s while maintaining their respective brand identities.
In a major strategic move to bolster market share and competitiveness, May purchased the Marshall Field's chain from Target Corporation in 2004 before being absorbed by Federated Department Stores in 2005.
Federated's Acquisition of May
On February 28, 2005, Federated Department Stores, Inc. revealed its plan to acquire the May Company in an $11 billion stock transaction. To support this acquisition financially, Federated divested its combined proprietary credit card operations to Citigroup. The merger reached completion on August 30, 2005, after securing approvals from state attorneys general in New York, California, Massachusetts, Maryland, and Pennsylvania.
By September 2006, Federated had unified the majority of May's regional brands—including Marshall Field's, Filene's, Kaufmann's, and Robinsons-May—under the Macy's banner. Except for one former Hecht's location in Friendship Heights, which was converted into a Bloomingdale's, all retained stores were rebranded as Macy's. The credit call center operated by May in Lorain, Ohio, ceased operations on July 1, 2006. In October 2006, the Lord & Taylor division was sold to NRDC Equity Partners for $1.2 billion. Furthermore, David's Bridal and After Hours Formalwear were divested in November of the same year.
May Centers
During the early 1900s, the May Department Stores Company established a real estate division dedicated to acquiring property and constructing standalone department stores. In 1947, May ventured into developing open-air shopping centers with the creation of what would become the Baldwin Hills Crenshaw Plaza in Los Angeles. This expansion positioned May as a prominent mall developer by building shopping centers designed to accommodate its department store locations.
By the mid-1980s, May’s stock price was considered undervalued, rendering the company vulnerable to hostile takeover attempts. To enhance shareholder value quickly, May partnered with Prudential Insurance, which invested $550 million for a 50% ownership interest in May Centers. This infusion of capital facilitated stock repurchase programs aimed at reinforcing the company’s market standing. In 1992, Prudential acquired full control of May Centers and subsequently renamed it CenterMark.
This strategic initiative highlighted May’s evolving business approach by capitalizing on its real estate holdings to improve financial outcomes and safeguard shareholder interests amid increasing competitive pressures within the retail sector.