Macy's, Inc. (M): History, Ownership, Mission, How It Works & Makes Money

Ever wonder about the story behind Macy's, Inc., a name synonymous with American retail? With a market cap of $3.15 Billion USD as of April 2025, and a rich history, it's more than just a department store. But how did it become a household name, who steers the ship, and, most importantly, how does it navigate the ever-changing currents of the retail industry to stay profitable?

Dive in to discover the evolution of Macy's, from its humble beginnings to its current strategic initiatives, including the 'Bold New Chapter' strategy aimed at enhancing customer experience and driving growth, as the company reported a GAAP diluted earnings per share (EPS) of $1.21, with an adjusted diluted EPS of $1.80 for the fourth quarter of 2024. From ownership structure to its mission and revenue streams, we'll unpack the key elements that define Macy's, Inc. and its place in today's market.

Macy's, Inc. (M) History

Macy's Founding Timeline

Year established

The company was founded in 1858.

Original location

The original store was located in New York City.

Founding team members

Rowland Hussey Macy Sr. was the founder.

Initial capital/funding

R.H. Macy started with a small dry goods store and a capital of $6,000.

Macy's Evolution Milestones

Macy's Transformative Moments

• Relocation to Herald Square: In 1902, the move to Herald Square significantly increased the store's visibility and customer base, establishing it as a major shopping destination.
• The Thanksgiving Day Parade: Initiated in 1924, the annual parade became a cultural phenomenon, boosting brand recognition and customer loyalty.
• Digital Transformation: In recent years, a strong push towards e-commerce and digital marketing has allowed the company to meet evolving consumer preferences and compete with online retailers.
• Strategic Acquisitions and Mergers: The merger with Federated Department Stores in 1994 expanded the company's portfolio and market reach, setting the stage for further growth.

These moments reflect the company's ability to adapt, innovate, and stay relevant in a constantly changing retail environment. The company's history demonstrates a commitment to customer engagement and brand building.

For more in-depth information about the investors, check this out: Exploring Macy's, Inc. (M) Investor Profile: Who’s Buying and Why?

Macy's, Inc. (M) Ownership Structure

Macy's, Inc. operates with a mixed ownership structure, featuring a blend of institutional, mutual fund, and individual holdings. The company's shares are publicly traded, influencing its governance and strategic decisions.

Macy's Current Status

Macy's, Inc. is a public company, meaning its shares are traded on the stock market. This allows anyone to buy and sell shares, making ownership distributed among many investors.

Macy's Ownership Breakdown

The ownership of Macy's, Inc. is distributed among various types of shareholders. Here's a breakdown:

Macy's Leadership

The leadership team is responsible for setting the strategic direction and overseeing the operations of the company. As of April 2025, key leaders at Macy's include:

• Tony Spring: Chief Executive Officer
• Adrian Mitchell: Chief Operating Officer & Chief Financial Officer
• Richard Lennox: Brand President, Bloomingdale’s
• Tricia Smith: Chief Legal Officer

For more insights into Macy's financial stability, check out: Breaking Down Macy's, Inc. (M) Financial Health: Key Insights for Investors

Macy's, Inc. (M) Mission and Values

Macy's, Inc. aims to deliver fashion and affordable luxury to its customers. The company's core values emphasize inclusivity, collaboration, and a commitment to giving back to the community.

Macy's Core Purpose

Official mission statement

While Macy's, Inc. does not have a single, universally publicized official mission statement, its purpose is reflected in its actions and communications. Here are key aspects of what the company aims to achieve:

• Enhance the shopping experience by providing a wide assortment of desirable products.
• Offer customers a mix of nationally recognized brands and exclusive private brands.
• Focus on creating a positive and engaging shopping environment, both in-store and online.
• Commit to corporate social responsibility through various community and sustainability initiatives.

For more in-depth information, you can explore: Mission Statement, Vision, & Core Values of Macy's, Inc. (M).

Vision statement

Macy's vision is to be a leading omnichannel retailer that delivers fashion and affordable luxury to its customers nationwide. This vision encompasses several key areas:

• Omnichannel Excellence: Integrating physical stores with a robust online presence to provide a seamless shopping experience.
• Fashion Authority: Remaining a go-to destination for the latest fashion trends and styles.
• Customer Engagement: Building lasting relationships with customers through personalized experiences and loyalty programs.
• Market Leadership: Maintaining a competitive edge in the retail industry through innovation and strategic initiatives.

Company slogan/tagline

Macy's has used various slogans and taglines throughout its history to capture its brand essence. Here are a few examples:

• 'Believe in the Magic of Macy's' (often used during holiday seasons)
• 'Own Your Style' (emphasizing personal expression through fashion)
• 'The Star of American Shopping' (highlighting its iconic status in retail)

These taglines reflect Macy's commitment to creating memorable shopping experiences and offering customers the opportunity to express their individual style.

Macy's, Inc. (M) How It Works

Macy's, Inc. operates department stores offering a wide range of apparel, accessories, cosmetics, home furnishings, and other consumer goods. The company primarily serves middle-to-upper income consumers looking for well-known brands and exclusive products.

Macy's Product/Service Portfolio

Macy's Operational Framework

Macy's operational framework involves several key processes that drive value creation:

• Merchandise Procurement: Sourcing products from a mix of private-label and national brands, with a focus on exclusive collaborations and designs to differentiate offerings.
• Inventory Management: Utilizing sophisticated systems to forecast demand, manage inventory levels, and optimize product assortment across different store locations and online channels.
• Store Operations: Maintaining visually appealing and customer-friendly store environments, staffed with knowledgeable sales associates who provide personalized service.
• Marketing and Promotion: Implementing targeted marketing campaigns through various channels, including digital advertising, social media, email marketing, and print media, to drive traffic and sales. In 2024, Macy's invested heavily in digital marketing to reach a broader audience.
• E-commerce Platform: Operating a robust e-commerce platform that provides customers with a seamless online shopping experience, including features such as online ordering, shipping, and returns.
• Supply Chain Management: Managing a complex supply chain network to ensure timely delivery of products from suppliers to stores and customers, with a focus on efficiency and cost optimization.
• Customer Service: Providing excellent customer service through various channels, including in-store assistance, online chat, and phone support, to build customer loyalty and satisfaction.

Macy's Strategic Advantages

Macy's possesses several strategic advantages that enable it to compete effectively in the retail market:

• Brand Recognition: Strong brand heritage and recognition, built over many years, which attracts a loyal customer base.
• Store Locations: A network of well-located stores in major metropolitan areas and shopping malls, providing convenient access for customers.
• Omnichannel Capabilities: Integrated online and offline channels that allow customers to shop seamlessly across different platforms.
• Exclusive Brands and Products: Partnerships with well-known brands and designers to offer exclusive products that differentiate Macy's from its competitors.
• Loyalty Program: A robust loyalty program (Star Rewards) that incentivizes repeat purchases and builds customer loyalty.
• Data Analytics: Leveraging data analytics to gain insights into customer behavior, optimize product assortment, and personalize marketing efforts.

For more insights into the company's financial performance, you can check this out: Breaking Down Macy's, Inc. (M) Financial Health: Key Insights for Investors

Macy's, Inc. (M) How It Makes Money

Macy's, Inc. primarily generates revenue through the retail sale of apparel, accessories, cosmetics, home furnishings, and other consumer goods via its department stores, websites, and mobile applications.

Macy's, Inc. Revenue Breakdown

Macy's, Inc. Business Economics

Macy's business economics are influenced by several key factors:

• Pricing Strategies: Macy's employs a variety of pricing strategies, including promotional pricing, clearance events, and everyday value pricing, to attract customers and manage inventory levels.
• Cost of Goods Sold (COGS): The cost of goods sold includes the direct costs of purchasing merchandise, as well as inbound freight and inventory handling costs. Managing COGS effectively is crucial for maintaining profitability.
• Operating Expenses: Operating expenses encompass a wide range of costs, including selling, general, and administrative expenses, as well as marketing and advertising costs. Controlling operating expenses is essential for maximizing earnings.
• Economic Factors: Macroeconomic conditions, such as consumer confidence, employment rates, and disposable income levels, can significantly impact Macy's sales and profitability.

Macy's, Inc. Financial Performance

Macy's financial performance can be assessed through the following metrics:

• Revenue: For the fiscal year 2024, Macy's, Inc. reported net sales of $23.088 billion.
• Gross Margin: In the fiscal year 2024, Macy's, Inc. reported a gross margin rate of 40.0%.
• Operating Income: In the fiscal year 2024, Macy's, Inc. reported operating income of $754 million.
• Net Income: In the fiscal year 2024, Macy's, Inc. reported net income of $121 million.
• Comparable Sales: Comparable sales, which measure sales at stores open for at least one year, are a key indicator of Macy's performance.

To gain a deeper understanding of Macy's financial health, consider exploring this analysis: Breaking Down Macy's, Inc. (M) Financial Health: Key Insights for Investors

Macy's, Inc. (M) Market Position & Future Outlook

As of April 2025, Macy's, Inc. is navigating a dynamic retail landscape, striving to maintain its relevance and market share amidst evolving consumer preferences and increasing competition. The company's future outlook hinges on its ability to successfully execute its strategic initiatives, adapt to changing market conditions, and capitalize on emerging opportunities while mitigating potential risks. For more insights, explore Breaking Down Macy's, Inc. (M) Financial Health: Key Insights for Investors.

Competitive Landscape

Opportunities & Challenges

Industry Position

Macy's, Inc. holds a significant position in the department store sector, leveraging its brand heritage and extensive store network. However, the company faces increasing pressure from online retailers and changing consumer preferences.

• The company is adapting by investing in its digital capabilities, enhancing its omnichannel offerings, and focusing on differentiated products and experiences.
• Strategic partnerships and collaborations with other brands are crucial for attracting new customers and staying relevant in the evolving retail landscape.
• Focusing on data analytics and customer insights to personalize marketing efforts and improve inventory management will be vital for optimizing performance and driving growth.