Macy's, Inc.
Formerly | Federated Department Stores, Inc. (1929–2007) | |
---|---|---|
Company type | Public | |
Industry | New York City, New York , United States | |
Number of locations | 722 (2022) | |
Area served |
| |
Key people | Jeff Gennette ( CEO ) | |
Products |
| |
Revenue | Parent Campeau Corporation (1988–1992) | |
Subsidiaries | ||
Website | macysinc | |
Footnotes / references [1][2] |
Macy's, Inc. (previously Federated Department Stores, Inc.) is an American holding company of department stores. Upon its establishment in 1929, Federated held ownership of the regional department store chains Abraham & Straus, Lazarus, Filene's, and Shillito's. Bloomingdale's joined Federated Department Stores the next year. Throughout its early history, frequent acquisitions and divestitures saw the company operate a number of nameplates. In 1994, Federated took over the department store chain Macy's. Despite a long history of preserving regional nameplates, with the acquisition of The May Department Stores Company in 2005, they were retired and replaced by the Macy's and Bloomingdale's brands nationwide by 2006. Ultimately, Federated itself was renamed Macy's, Inc. in 2007.
Macy's, Inc. owns the department store chains Bloomingdale's and Macy's, and beauty store chain Bluemercury, all of which operate flagship stores in Manhattan. As of October 2022[update], it operates 722 locations in the United States, Guam, and Puerto Rico. The company was the world's largest fashion goods retailer and the 36th largest retailer overall in 2010.[3] Macy's, Inc. has been headquartered within Macy's Herald Square in New York City since 2020, and was previously headquartered in Cincinnati, Ohio from 1945 until 2020.
Operations as Federated
Early history
Federated Department Stores traces its corporate lineage to
In the mid-1930s, a modern merchandising standard was set when Fred Lazarus Jr. arranged garments in groups of a single size with a range of style, color and price, basing the technique upon observations made in Paris. As well, Lazarus convinced President Franklin D. Roosevelt that it would help American economy to change the Thanksgiving holiday from the last Thursday of November to the fourth Thursday, thus extending the Christmas shopping season. An act of Congress perpetuated the arrangement in 1941. Black Friday became a nationwide sensation and the most profitable day for Federated. (Robert Lazarus Jr. worked at Federated until he died in 2013, the last remaining family member with an official role at the company.[5])
In 1945, Federated moved its corporate offices to
Acquisition by Campeau
Canadian real estate developer
Acquisition of Macy's
Also in 1992, Macy's declared bankruptcy; Federated acquired it two years later, in 1994. The name of the once-main-rival of Federated, Macy's, would soon become the consumer-facing identity of most of Federated's stores.
In 1995 Federated bought
The department store chain Stern's, a division of Federated, ceased operations in 2001 and most of its stores became Macy's stores.
Federated began selling goods online in 1998, rather later than most contemporary large retailers; Federated ran a private bank, FDS Bank, which issued and maintained the majority of its own consumer credit card portfolio,[16] was one of the last credit card banks to begin to allow its cardholders to access account information online (around 2004).
In 1998, Federated settled an SEC investigation for $14.46 million (equivalent to $27 million in 2024) due to unethical debt-collection practices. Federated routinely forced credit card holders/debtors to sign an agreement that legally bound them to repay their outstanding balances instead of having the unsecured debt discharge via the filing of bankruptcy. Federated failed to file reaffirmation agreements with bankruptcy courts. As a result, the changes in the agreements were not legally binding.[17][18][19][20]
In 2001 Federated acquired Liberty House of Hawaii as it emerged from Chapter 11 bankruptcy. It was managed as part of Macy's West and all the store names were changed to Macy's.[21][circular reference]
In 2005, Federated agreed to sell its credit card business to Citigroup.[22]
Acquisition of May
This section needs additional citations for verification. (October 2023) |
On February 28, 2005, Federated Department Stores announced that it would acquire
As a result of the merger, Federated also in the process reacquired two of their former department store chains Foley's & Filene's (Which Federated originally sold to May Company), putting them back under the Federated Department Stores corporate umbrella for the first time since 1988.
Federated announced plans to sell 80 store locations in 2006, having pledged in its settlement to sell most of them as viable businesses, with preference being given to a group of thirteen competitors. This number could fluctuate pursuant to Federated's negotiations with various mall landlords and its final decision regarding using former Macy locations for its luxury Bloomingdale's operation.
On January 12, 2006, Federated announced its plans to divest May Company's Lord & Taylor division (48 stores in 12 states) by the end of 2006 after utilizing prime and conflicting real estate by closing and converting several locations. On June 22, 2006, Macy's announced that NRDC Equity Partners, LLC would purchase Lord & Taylor for US$1.2 billion (equivalent to $1.81 billion in 2024), and completed the sale in October 2006.
On September 9, 2006, the former May Company store names Famous-Barr, Filene's, Foley's, Hecht's, The Jones Store, Kaufmann's, L. S. Ayres, Marshall Field's, Meier & Frank, Robinsons-May, and Strawbridge's disappeared as Federated switched most of them to the Macy's masthead and a few to the Bloomingdale's name. One of the consequences of this rebranding is that several malls have two Macy's stores. In downtown Boston, Federated liquidated an acquired Filene's because it already had a Macy's (formerly a Jordan Marsh) across the street. The two stores have a combined floorspace of more than 1,400,000 square feet (130,000 m2), more than two-thirds the size of Macy's New York City flagship store.
On November 17, 2006, the bridal and formal unit was sold. David's Bridal and Priscilla of Boston were sold to
Operations as Macy's, Inc.
This section needs additional citations for verification. (October 2023) |
2000s
On February 27, 2007, Federated announced that its board of directors would ask shareholders to change the company's name to Macy's Group, Inc. By March 28, the company revised its plans for the new name, opting to eventually become Macy's, Inc. Federated shareholders approved the revised proposal during the company's annual meeting on May 18, 2007.[24]
The name took effect on June 1, 2007. The reasoning for the proposed name change—according to Terry Lundgren, Federated's chairman, president, and chief executive officer—hinges on the large-scale conversions throughout the company toward the Macy's nameplate. "Today, we are a brand-driven company focused on Macy's and Bloomingdale's, not a federation of department stores," Lundgren said in the company's press release heralding the proposed name.[25] Upon the change to Macy's Inc., Federated's stock ticker symbol on the New York Stock Exchange changed from "FD" to "M", making the new Macy's Inc. one of a handful of single-letter ticker symbol companies.[26]
In April 2008, Moody's Investors Service said that it might downgrade Macy's Inc. bonds to just above junk status.[27] That same month, Fitch Ratings downgraded their bond credit rating to BBB− from BBB, noting a deterioration in the company's operating and credit metrics.
The domain macysinc.com attracted at least 3 million visitors annually by 2008, according to a Compete.com survey.[28]
On Wednesday, February 6, 2008, Terry Lundgren announced the localization strategy and the company's plan to shed 2,550 jobs. This new localization strategy is known as "My Macy's."
Employees of the Macy's North headquarters office in Minneapolis, the Macy's Northwest headquarters office in Seattle, and the Macy's Midwest headquarters office in St. Louis were given pink slips, as Macy's pared its seven regional centers to four. About 40 new jobs were to be created in May as part of the restructuring. By 2009, the company expected to save $100 million (equivalent to $142 million in 2024) a year from the cuts.
On February 2, 2009, Macy's announced the elimination of 7,000 jobs, or 4% of its workforce, and slashed its dividend as it looked to lower expenses as part of a major restructuring.
Macy's also got rid of its division structure and integrated its functions into one organization. Macy's central buying, merchandise planning, stores senior management and marketing functions merged to its
Macy's Inc. decided to close the Bloomingdale's at the Mall of America in Minnesota. Since 1994, Bloomingdale's had been one of the 4 anchor stores of the mall, and will be replaced with a $30 million renovation with four new foreign clothing stores.
2010s
On October 14, 2013, Macy's Inc. announced the decision to open most of their stores for the first time on
As of February 2014[update], Macy's Inc. is valued at US$28 billion.[30]
In September 2015, Macy's announced it would close 40 stores, 5% of its total stores in early 2016. It also announced plans to open 6 additional Macy's Backstage locations. From 2010 to 2015, Macy's had closed 52 stores and opened 12.[31]
2020s
In February 2020, Macy's announced that their headquarters in downtown Cincinnati will be closing in the near future with all corporate operations relocating to New York City. This news came after a gradual pulling out of the Cincinnati area with a couple of area store closures and the retirement of a top executive.
In November 2021, Macy's announced the launch of its digital marketplace, which set to debut in the second half of 2022. Macy's will partner with AlixPartners and Mirakl.[32]
In November 2023, it was reported that Arkhouse Management and Brigade Capital Management have offered to buy Macy's Inc. for $5.8 billion.[33] Macy's rejected the offer in January 2024 citing the unsolicited offer to be undervalued.[34] The investor group increased their offer to $6.6 billion two months later.[35]
In February 2024, Macy's announced it would close 150 stores by 2026.[36]
Nameplates
Name | Year founded |
Year acquired |
Notes |
---|---|---|---|
Bloomie’s | 2021 | — | Small-format Bloomingdale’s |
Bloomingdale's | 1860 | 1930 | |
Bloomingdale’s The Outlet Store | 2010 | — | |
Bluemercury | 1999 | 2015 | |
Macy's | 1858 | 1994 | |
Macy's Backstage | 2015 | — | |
Market by Macy's | 2020 | — | Small-format Macy’s |
Previous nameplates
Name | Year founded |
Year acquired |
Year defunct |
Notes |
---|---|---|---|---|
A. Harris and Company
|
1889 | 1961 | 1961 | Merged with Sanger Brothers to form Sanger-Harris |
Abraham & Straus | 1865 | 1929 | 1995 | Replaced by Macy's |
After Hours | 1946 | 2005 | 2008 | Sold to Men's Wearhouse in 2006 |
Bamberger's | 1893 | 1986 | 1986 | |
The Bon Marché | 1890 | 1992 | 2005 | Co-branded Bon-Macy's from 2003–2005; converted to Bloomingdale's and Macy's |
Boston Store
|
1897 | 1948 | 1985 | Sold to Maus Frères |
The Broadway | 1896 | 1995 | 1996 | |
Bullock's | 1907 | 1995 | 1996 | Previously owned by Federated from 1948–1985; converted to Macy's |
Burdines | 1896 | 1956 | 2005 | Co-branded Burdines-Macy's from 2003–2005; converted to Macy's |
David's Bridal | 1950 | 2005 | — | Sold to Leonard Green & Partners in 2006 |
Davison's | 1860 | 1925 | 1986 | |
The Emporium | 1896 | 1995 | 1996 | Converted to Macy's |
Famous-Barr | 1911 | 2005 | 2006 | Converted to Macy's |
Filene's | 1881 | 2005 | 2006 | Previously owned by Federated from 1929–1988; converted to Macy's |
Filene’s Basement
|
1908 | 1929 | 2011 | Spun off after Federated acquisition by Campeau Corporation in 1988 |
Foley's | 1900 | 2005 | 2006 | Previously owned by Federated from 1947–1988; converted to Macy's |
Gold Circle | 1967 | 1967 | 1988 | |
Gold Triangle | 1970 | 1970 | 1981 | Converted into Richway |
Goldsmith's | 1870 | 1959 | 2005 | Co-branded Goldsmith's-Macy's from 2003–2005; converted to Macy's |
Hecht's | 1857 | 2005 | 2006 | Converted to Bloomingdale's and Macy's |
I. Magnin | 1876 | 1994 | 1994 | Previously owned by Federated from 1964–1987; converted to Macy's |
John Taylor Dry Goods Co. | 1949 | |||
The Jones Store | 1887 | 2005 | 2006 | Converted to Macy's |
Jordan Marsh | 1841 | 1988 | 1996 | Converted to Macy's |
Kaufmann's | 1871 | 2005 | 2006 | Converted to Macy's |
L. S. Ayres | 1872 | 2005 | 2006 | Converted to Macy's |
Lasalle & Koch | 1865 | 1981 | 1981 | |
Lazarus | 1851 | 1929 | 2005 | Co-branded Lazarus-Macy's from 2003–2005; converted to Macy's |
Liberty House | 1849 | 2001 | 2001 | Converted to Macy's |
Lord & Taylor | 1826 | 2005 | 2021 | Sold to NRDC Equity Partners |
Maas Brothers | 1886 | 1988 | 1991 | Converted to Burdines |
MainStreet | 1983 | 1983 | 1988 | Sold and converted to Kohl's |
Marshall Field's | 1852 | 2005 | 2006 | Converted to Bloomingdale's and Macy's |
Meier & Frank | 1857 | 2005 | 2006 | Converted to Macy's |
O'Connor, Moffat & Co. | 1947 | |||
Ralphs | 1873 | 1968 | — | Sold to DeBartolo Corporation in 1992 |
Rich's | 1867 | 1976 | 2005 | Co-branded Rich's-Macy's from 2003–2005; converted to Bloomingdale's and Macy's |
Richway | 1968 | 1976 | 1988 | Converted to Gold Circle |
Rike's | 1853 | 1959 | 1982 | Merged with Shillito's to form Shillito-Rike's |
Robinsons-May | 1993 | 2005 | 2006 | Converted to Bloomingdale's and Macy's |
Sanger Brothers
|
1868 | 1951 | 1961 | Merged with A. Harris and Company to form Sanger-Harris |
Sanger-Harris
|
1961 | 1961 | 1987 | Converted to Foley's |
Shillito's | 1830 | 1929 | 1982 | Merged with Rike's to form Shillito-Rike's |
Shillito-Rike's | 1982 | 1982 | 1986 | Converted to Lazarus |
Stern's | 1867 | 1988 | 2001 | Converted to Bloomingdale's and Macy's |
Strawbridge's | 1868 | 2005 | 2006 | Converted to Macy's |
Weinstock's | 1924 | 1995 | 1995 |
Criticism
The conversion of Marshall Field's in Chicago was particularly criticized, with many customers boycotting its historic State Street flagship store. The Chicago Tribune continues to report on the poor reception of Macy's in Chicago. Pittsburgh customers also strongly resisted the name change from Kaufmann's, in part because of the Kaufmann family role in Pittsburgh history, as well as the central store's Christmas windows and holiday parade.
Gallery
-
Federated logo until 2007
-
Macy's, Inc. logo from 2007–2019
-
Macy's, Inc. logo from 2019–2023
References
- ^ "Macy's, Inc. 2018 Annual Report (Form 10-K)". sec.gov. U.S. Securities and Exchange Commission. February 2019.
- ^ "Store Count and Square Footage". Macy's, Inc. Archived from the original on 2019-03-23. Retrieved 2022-11-19.
- ^ Deloitte, Switching Channels: Global Powers of Retailing 2012, January 2012, at pp. G11 and G27.
- ^ "Fred Lazarus 3d, 84, Retailing Executive". The New York Times. 4 August 1996. Retrieved 2018-06-25.
- ^ Feran, Tim. "Store executive Robert Lazarus Jr. was community pillar". The Columbus Dispatch. Retrieved 2018-06-25.
- ^ "Business – The Enquirer – October 12, 1997". enquirer.com. Retrieved 2018-06-25.
- ^ "History of Federated Department Stores, Inc. – FundingUniverse". www.fundinguniverse.com. Retrieved 20 October 2019.
- ^ "Federated to Buy Twin Fair Stores", The New York Times, March 27, 1982 (accessed August 26, 2008).
- ^ "Federated Stores". The New York Times. 10 October 1983. Retrieved 2018-06-25.
- ^ Mayer, Caroline E. (March 16, 1988). "Macy's counters Campeau with new Federated bid". The Washington Post.
- ISSN 0190-8286. Retrieved 2018-06-25.
- ^ "Federated, Allied file for Chapter 11 bankruptcy". UPI. Retrieved 2018-06-25.
- ^ Loomis, Carol (18 June 1990). "The biggest looniest deal ever". CNN Money. Retrieved 8 April 2024.
In January, days before the filing, Campeau Corp.'s board, by then strongly influenced by the Reichmanns, stripped Bob Campeau of authority over retailing and put the operation on its own. Then the board put Federated, Allied, and 65 subsidiaries into Chapter 11. As boss of what is now called Federated Stores Inc., the directors installed G. William Miller
- ^ Lazzareschi, Carla (4 February 1992). "Ex-Creditors Acquire Ralphs Supermarkets". Los Angeles Times. Retrieved 20 October 2019.
- ^ "Federated to Buy Broadway Stores For $1.6 Billion". The New York Times. August 15, 1995.
- ^ "The Cincinnati Enquirer from Cincinnati, Ohio on November 10, 2001 · Page 27". Newspapers.com. Retrieved 2018-06-25.
- ^ "Federated Settles for Millions," BCD News and Comment. Vol. 32:1. March 3, 1998.
- ^ "Federated Department Store Settles FTC Action for 8 Million," Consumer Financial Services Law Report. Vol. 3:1. June 11, 1999.
- ^ "FTC and Federated Settle Reaffirmation Claims," Consumer Bankruptcy News, Vol. 8:19. June 17, 1999.
- ^ "Exhibit10.1 11012014". www.sec.gov. Retrieved 2018-06-25.
- ^ Liberty House (department store)
- ^ Fasig, Lisa (2 June 2005). "Federated to sell credit card business for $4.5 billion".
- ^ Federated Agrees to Sell Bridal Group, Federated Department Stores, Inc., November 17, 2006.
- ^ "Yahoo Finance - Stock Market Live, Quotes, Business & Finance News".
- ^ "Federated Plans Corporate Name Change", Federated Department Stores, February 27, 2007.
- ^ Read, Madlen (March 28, 2007). "Federated Plans 'M' Stock Ticker". Yahoo Business. AP. Archived from the original on May 4, 2007.
- ^ Witkowski, Wallace (April 4, 2008). "Moody's may downgrade Macy's on weak credit". MarketWatch. Retrieved 2015-05-24.
- ^ "macysinc.com UVs for April 2015". siteanalytics.compete.com. Archived from the original on 2011-05-22. Retrieved 2015-05-24.
- ^ Malcolm, Hadley (October 14, 2013). "Most Macy's stores will open at 8 p.m. on Thanksgiving". USA Today. Retrieved October 15, 2013.
- ^ Moin, David (February 26, 2014). "Macy's Sets Strategy to Keep Momentum". WWD. Retrieved February 26, 2014.
- ^ Isidore, Chris (2015-09-09). "Macy's closing up to 40 more stores". CNNMoney.
- ^ Lauren Thomas (November 18, 2021). "Macy's shares surge on upbeat earnings, decision to hire AlixPartners to review business". CNBC. Retrieved February 10, 2022.
- ^ Fonrouge, Gabrielle; Picciotto, Rebecca (2023-12-10). "Macy's receives $5.8 billion buyout offer, sources say". CNBC. Retrieved 2023-12-11.
- ^ Valinsky, Jordan (January 22, 2024). "Macy's rejects a $5.8 billion unsolicited takeover offer". CNN Business.
- ^ Mishra, Savyata (March 4, 2024). "Macy's surges after investor group sweetens take-private bid to $6.6 bln". Reuters.
- ^ "Macy's to close 150 stores, or about 30% of its locations - CBS News". CBS News. 27 February 2024.
External links
- Business data for Macy's, Inc.: