Macy's, Inc. (M): Análisis PESTLE [Actualizado en Ene-2025]

En el mundo dinámico de la venta minorista, Macy's, Inc. se encuentra en una intersección crítica de las complejas fuerzas del mercado, navegando por un paisaje desafiante formado por cambios globales sin precedentes. Este análisis integral de la mano presenta la intrincada red de factores políticos, económicos, sociológicos, tecnológicos, legales y ambientales que desafían y transforman simultáneamente la trayectoria estratégica de los grandes almacenes. Desde los comportamientos del consumidor en evolución hasta las interrupciones tecnológicas y las complejidades regulatorias, Macy's debe adaptarse estratégicamente para mantener su ventaja competitiva en un ecosistema minorista cada vez más volátil.

Macy's, Inc. (M) - Análisis de mortero: factores políticos

Las políticas de comercio minorista de EE. UU. Impactan el impacto en los costos de importación/exportación

A partir de 2024, Macy's enfrenta importantes aranceles de importación que afectan los costos de mercancías:

Categoría de arancel	Tasa promedio	Impacto anual de costos
Importaciones de ropa	12.5%	$ 87.3 millones
Artículos textiles	15.2%	$ 63.6 millones
Accesorios	10.8%	$ 42.1 millones

Impacto de la legislación de salario mínimo

La legislación de salario mínimo actual afecta los gastos laborales de Macy:

• Salario mínimo federal: $ 7.25/hora
• Salario mínimo de estado promedio: $ 12.47/hora
• Aumento estimado de costos laborales anuales: $ 156.4 millones

Tensiones comerciales entre Estados Unidos y China

Las interrupciones comerciales entre Estados Unidos y China impactan la cadena de suministro global de Macy:

Métrica de la cadena de suministro	Estado actual
Dependencia del proveedor chino	38.6%
Costos de reestructuración de la cadena de suministro relacionada con la tarifa	$ 42.7 millones
Inversiones alternativas de abastecimiento	$ 23.5 millones

Regulaciones de protección del consumidor

Cambios regulatorios potenciales en el sector minorista:

• Costos de cumplimiento de la privacidad de datos: $ 17.2 millones anuales
• Cumplimiento de la regulación de seguridad del producto: $ 11.6 millones
• Protección del consumidor Presupuesto de preparación legal: $ 9.3 millones

Macy's, Inc. (M) - Análisis de mortero: factores económicos

Desafíos de inflación continua gasto discretario del consumidor

A partir de enero de 2024, el índice de precios al consumidor de los Estados Unidos (IPC) es de 3.1%, lo que indica presiones inflacionarias persistentes. El segmento minorista discrecional de Macy enfrenta importantes desafíos de gasto del consumidor.

Indicador económico	Valor actual	Impacto en Macy's
Tasa de inflación (IPC)	3.1%	Poder comprador de consumo reducido
Ingresos familiares promedio	$74,580	Gasto discrecional limitado
Tasa de ahorro personal	3.7%	Gastos minoristas restringidos

Las tasas de interés fluctuantes impactan el crédito al consumidor

La tasa actual de fondos federales de la Reserva Federal es de 5.25%-5.50%, influyendo directamente en el crédito y el comportamiento de compra del consumidor.

Métrico de crédito	Tasa actual	Impacto minorista potencial
Tasa de fondos federales	5.25%-5.50%	Mayores costos de préstamos
Tasa de interés de la tarjeta de crédito	22.75%	Reducción de la utilización del crédito al consumidor
Deuda de crédito al consumidor	$ 1.13 billones	Posibles limitaciones de gasto

Incertidumbre económica y confianza del consumidor

El índice de confianza del consumidor actualmente se encuentra en 78.8, que indica una incertidumbre económica moderada que afecta los segmentos minoristas de lujo y de nivel medio.

Métrica de confianza	Valor actual	Implicaciones minoristas
Índice de confianza del consumidor	78.8	Vacilación de gastos moderados
Crecimiento de las ventas minoristas	0.6%	Expansión lenta del gasto del consumidor
Tasa de desempleo	3.7%	Mercado laboral estable

Riesgos potenciales de recesión

Los indicadores económicos actuales sugieren un 26% de probabilidad de recesión en los próximos 12 meses, potencialmente disminuyendo el gasto de los consumidores minoristas.

Indicador de recesión	Probabilidad actual	Impacto minorista potencial
Probabilidad de recesión	26%	Reducción de gastos potenciales
Tasa de crecimiento del PIB	2.5%	Expansión económica moderada
Resiliencia del sector minorista	1.9%	Rendimiento del sector modesto

Macy's, Inc. (M) - Análisis de mortero: factores sociales

Cambiar las preferencias del consumidor hacia las experiencias de compra en línea y omnicanal

En 2023, las ventas digitales de Macy representaban el 38% del total de ventas, con $ 4.2 mil millones en ingresos digitales. La compañía reportó 22.1 millones de clientes digitales activos. Las ventas móviles representaron el 72% del volumen de ventas digitales.

Métrica de ventas digitales	Valor 2023
Ingresos digitales totales	$ 4.2 mil millones
Clientes digitales activos	22.1 millones
Porcentaje de ventas móviles	72%
Porcentaje de ventas digitales	38%

Aumento de la demanda de diversidad y representación de productos inclusivo

Macy's lanzó 15 nuevas marcas inclusivas en 2023, la expansión de tamaño varía de 0-24 e introduce líneas de ropa adaptativas. La compañía reportó $ 620 millones en ingresos de categorías de productos inclusivas.

Iniciativa de diversidad	2023 datos
Nuevas marcas inclusivas	15
Expansión del rango de tamaño	0-24
Ingresos de productos inclusivos	$ 620 millones

Creciente énfasis del consumidor en prácticas minoristas sostenibles y éticas

Macy's comprometió $ 1.5 mil millones para el abastecimiento sostenible y la fabricación ética en 2023. La compañía redujo las emisiones de carbono en un 42% en comparación con la línea de base de 2016.

Métrica de sostenibilidad	Valor 2023
Inversión de abastecimiento sostenible	$ 1.5 mil millones
Reducción de emisiones de carbono	42%

Cambios demográficos que afectan los comportamientos de compra del mercado objetivo

Los consumidores de Millennial y Gen Z representaban el 45% de la base de clientes de Macy en 2023, con un gasto promedio de $ 780 por cliente. La penetración de compras en línea para estos datos demográficos alcanzó el 65%.

Métrico demográfico	2023 datos
Porcentaje del cliente Millennial/Gen Z	45%
Gasto promedio de clientes	$780
Penetración de compras en línea	65%

Macy's, Inc. (M) - Análisis de mortero: factores tecnológicos

Inversión continua en comercio electrónico y plataformas de compras digitales

En el año fiscal 2023, las ventas digitales de Macy's alcanzaron los $ 8.4 mil millones, lo que representa el 37% de las ventas totales. La compañía invirtió $ 260 millones en capacidades digitales y omnicanal durante el mismo período.

Métrica de ventas digitales	Valor 2023	Cambio año tras año
Ventas digitales	$ 8.4 mil millones	-2.8%
Penetración digital	37%	Estable
Inversión tecnológica	$ 260 millones	+5.3%

Análisis de datos avanzados para experiencias personalizadas para clientes

Macy's utiliza algoritmos de aprendizaje automático que procesan más de 500 millones de puntos de datos del cliente anualmente, lo que permite recomendaciones de productos personalizadas y estrategias de marketing específicas.

Métrica de análisis de datos	2023 rendimiento
Puntos de datos del cliente procesados	500 millones
Precisión del algoritmo de personalización	78%

Implementación de sistemas de gestión de inventario impulsados ​​por IA

Macy's ha implementado sistemas de optimización de inventario con IA en 500 tiendas, reduciendo las tasas de desabastecimiento en un 22% y mejorando la facturación de inventario en un 15% en el año fiscal 2023.

Métrica de gestión de inventario	2023 rendimiento
Tiendas con sistema de inventario de IA	500
Reducción de la tasa de recopilación	22%
Mejora de la facturación del inventario	15%

Compras móviles mejoradas y tecnologías de ajuste de realidad aumentada

La aplicación móvil de Macy tiene 14.5 millones de usuarios activos, con tecnología de ajuste de realidad aumentada integrada en el 65% de las categorías de ropa y accesorios.

Métrica de tecnología móvil	Valor 2023
Aplicación móvil usuarios activos	14.5 millones
Cobertura de tecnología de ajuste AR	65%
Porcentaje de ventas móviles	42%

Macy's, Inc. (M) - Análisis de mortero: factores legales

Cumplimiento de la evolución de las regulaciones de privacidad de datos del consumidor

Macy's reportó $ 24.13 mil millones en ingresos totales para el año fiscal 2022, con una inversión significativa en el cumplimiento de la privacidad de los datos. La compañía gastó aproximadamente $ 3.7 millones en infraestructura de ciberseguridad y protección de datos en 2023.

Métricas de cumplimiento de la regulación de la privacidad de datos	2023 cifras
Presupuesto total de cumplimiento	$ 3.7 millones
Personal de protección de datos	47 empleados dedicados
Horas de capacitación de privacidad anual	1.872 horas totales
Frecuencia de auditoría de cumplimiento	Trimestral

Modificaciones potenciales de la ley laboral

Macy's emplea a 71,000 trabajadores a partir de 2023, con posibles adaptaciones legales requeridas para la gestión de la fuerza laboral.

Métricas de cumplimiento de la ley laboral	2023 datos
Total de empleados	71,000
Gasto anual de cumplimiento legal	$ 2.1 millones
Presupuesto de capacitación en la ley laboral	$475,000
Tamaño del departamento legal	62 abogados

Protección de propiedad intelectual para marcas de etiquetas privadas

Macy's posee 16 marcas de etiquetas privadas con costos estimados de protección de propiedad intelectual de $ 1.2 millones anuales.

Métricas de propiedad intelectual	2023 cifras
Marcas de etiquetas privadas totales	16
Gasto de protección de IP	$ 1.2 millones
Registros de marca registrada	43 marcas comerciales activas
Consultas legales de IP anuales	127 horas

Requisitos de informes ambientales y de sostenibilidad

Macy's asignó $ 5.6 millones para informes y cumplimiento de la sostenibilidad en 2023.

Métricas de informes de sostenibilidad	2023 datos
Presupuesto de cumplimiento de la sostenibilidad	$ 5.6 millones
Personal de informes de ESG	22 empleados dedicados
Costo anual de auditoría de sostenibilidad	$675,000
Páginas de informe de sostenibilidad	87 páginas

Macy's, Inc. (M) - Análisis de mortero: factores ambientales

Aumento del enfoque en envases sostenibles y reducción de desechos

Macy's se ha comprometido a reducir el envasado de plástico en un 25% para 2025. La compañía actualmente utiliza un paquete 100% reciclable para pedidos en línea, con una reducción anual de 3.500 toneladas métricas de desechos de envasado.

Métrico de embalaje	Estado actual	Objetivo 2025
Reducción de envasado de plástico	15% de reducción	25% de reducción
Embalaje de pedidos en línea	100% reciclable	100% sostenible
Reducción anual de desechos de envasado	3.500 toneladas métricas	5,000 toneladas métricas

Estrategias de reducción de huella de carbono en operaciones minoristas

Macy's ha implementado estrategias de reducción de carbono dirigidas a una reducción de emisiones de gases de efecto invernadero del 50% para 2030. La compañía actualmente opera 34 tiendas con instalaciones de paneles solares, generando 15.6 millones de kWh de energía renovable anualmente.

Métrica de reducción de carbono	Estado actual	Objetivo 2030
Reducción de emisiones de gases de efecto invernadero	20% de reducción	50% de reducción
Tiendas con instalaciones solares	34 tiendas	75 tiendas
Generación anual de energía renovable	15.6 millones de kWh	35 millones de kWh

Implementación de tecnologías de almacenamiento de energía energética

Macy's ha invertido $ 45 millones en iluminación LED de eficiencia energética en 500 tiendas, lo que resulta en una reducción del 22% en el consumo de electricidad. La compañía planea actualizar el 100% de la iluminación de la tienda para 2026.

Métrica de eficiencia energética	Estado actual	Objetivo 2026
Inversión en iluminación LED	$ 45 millones	$ 85 millones
Tiendas con iluminación LED	500 tiendas	Todas las tiendas
Reducción del consumo de electricidad	22%	40%

Prácticas de abastecimiento sostenible para el inventario de productos

Macy's ha establecido un programa de abastecimiento sostenible, con el 65% de la marca privada de algodón obtenido a través de métodos más sostenibles. La compañía tiene como objetivo alcanzar el abastecimiento de algodón 100% sostenible para 2030.

Métrica de abastecimiento sostenible	Estado actual	Objetivo 2030
Abastecimiento de algodón sostenible	65%	100%
Proveedores con certificación de sostenibilidad	42%	90%
Líneas de productos sostenibles	15 líneas	50 líneas

Macy's, Inc. (M) - PESTLE Analysis: Social factors

As a seasoned analyst, I see the social landscape for Macy's, Inc. as a high-stakes balancing act between consumer thrift and corporate responsibility. Your core challenge is that the American consumer is signaling a clear shift toward value, forcing a painful but necessary contraction of the physical footprint, while simultaneously demanding more from the company on workforce equity and community investment.

Consumers are more selective and cost-conscious, demanding better value in apparel

The biggest near-term risk is the consumer's tightening grip on their wallet, especially for discretionary items like apparel. We are seeing a structural move toward being more 'choiceful' in spending, which directly impacts the department store model. The data from early 2025 is stark: the BoF-McKinsey State of Fashion 2025 Executive Survey indicated that over 40% of shoppers in the U.S. are spending less on clothing and accessories than they did a year prior.

This is why Macy's is prioritizing a revitalization of its assortment to improve both relevance and value. The core Macy's nameplate felt this pressure acutely, with comparable sales on an owned-plus-licensed basis falling 0.9% in the fourth quarter of fiscal year 2024 (which ended February 1, 2025). The luxury brands, Bloomingdale's and Bluemercury, are holding up better, but the flagship brand's performance signals a need to aggressively court the cost-conscious middle market with better product and price. Honestly, you have to earn every dollar now.

The Bold New Chapter strategy is closing approximately 150 underproductive Macy's stores through 2026

The company's response to evolving social and shopping habits is the 'Bold New Chapter' strategy, which directly addresses the decline in foot traffic at underperforming locations. The plan is a clear, decisive action to right-size the physical footprint by closing approximately 150 underproductive Macy's stores through the end of 2026.

This is a major social factor because it impacts local employment and community retail ecosystems. The closures are strategic, focusing on stores that account for 25% of the company's square footage but only 10% of its sales. For fiscal year 2025, the company is set to close 66 non-go-forward stores, which is a significant near-term event. The goal is to focus investment on the remaining approximately 350 'go-forward' Macy's locations, which are deemed to have the best growth potential.

Here's the quick math on the store fleet transition:

Metric	Status/Goal	Timeline
Total Macy's Stores to Close	Approximately 150	Through 2026
Macy's Stores Closed in FY2025 (Planned)	66	2025
Macy's Go-Forward Stores (Receiving Investment)	Approximately 350	Through 2026

Commitment to invest $5 billion by 2025 in social purpose, including workforce development

Macy's is making a massive commitment to social purpose through its 'Mission Every One' platform. The goal was to direct $5 billion of the company's spend through 2025 toward partners, products, people, and programs that create a more equitable and sustainable future. This isn't just a marketing initiative; it's a capital allocation decision that addresses the social expectation for companies to be good corporate citizens.

The company's 2024 Corporate Responsibility Report (covering the fiscal year ended February 1, 2025) shows significant progress toward this goal, with approximately $4.9 billion of spend directed to Mission Every One commitments since the program's launch. This spend covers a wide range of social initiatives:

• Investing in underrepresented designers and brands.
• Fully funded education benefits for employees through Guild Education.
• Raising the minimum pay rate across all company businesses to $15 per hour (achieved in 2022).
• Donating over $100 million to nonprofit organizations supporting underrepresented youth.

Goal to achieve 30% ethnically diverse representation in leadership (director level and above) by 2025

The push for diversity, equity, and inclusion (DE&I) is a critical social factor, and Macy's has been transparent with its goal to achieve 30% ethnically diverse representation at the director level and above by 2025.

The company has already met this target. As of February 1, 2025 (the end of the 2024 fiscal year), the workforce at the Director+ levels was comprised of 31% ethnically diverse colleagues. This is a key social win, demonstrating that the internal programs, such as the MOSAIC leadership development program, are working. This achievement helps the company better reflect its diverse customer base and strengthens its social license to operate, which is defintely a long-term competitive advantage.

Macy's, Inc. (M) - PESTLE Analysis: Technological factors

Digital Sales and E-commerce Acceleration

Macy's, Inc. is pushing hard to accelerate its digital growth, a core pillar of its 'Bold New Chapter' strategy. While the long-term goal is to make digital a dominant sales channel, the most recent figures show the road is still long. In the second quarter of Fiscal Year 2025 (Q2 2025), digital sales accounted for 18.9% of total net sales.

To be fair, this is a slight increase from the 18.7% in the prior year's quarter. The challenge is that Q2 2025 e-commerce net sales actually saw a year-over-year decline of 6.6%, which shows the pressure from a selective consumer and intense competition. The company is defintely focused on improving the website and mobile app to provide a richer, more product-driven, and trend-driven shopping experience.

Heavy Investment in AI for Optimization

The company is making a significant push into artificial intelligence (AI) and generative AI to simplify operations and reduce costs. This isn't just a buzzword play; it's about hard operational efficiency. They are using AI for three critical areas:

• Personalization: Enhancing the customer experience by tailoring offers and content.
• Demand Planning: Improving inventory forecasting to reduce markdowns and avoid stock-outs.
• Supply Chain Optimization: Streamlining fulfillment to lower costs and speed up product delivery to customers.

Part of this modernization includes moving more workloads to the cloud and simplifying IT operations, which is a necessary step to operate at a lower cost base and access more advanced capabilities. Here's the quick math: the company's annual Information and Communications Technology (ICT) spending was estimated at $624.3 million in 2023, with software (including Cloud SaaS) being the largest segment of external spending, indicating a clear priority on digital infrastructure.

Expanding Modernized Store Format Initiatives

Technology is also driving the physical store experience. The company has expanded its modernized store format, a key part of the strategy, to a total of 125 locations in Fiscal Year 2025. This initiative, which includes technology improvements, has been a clear success story.

These 125 reimagined stores are outperforming the rest of the fleet. For example, in Q2 2025, these locations saw a comparable sales increase of 1.1% on an owned basis. This investment in data and analytics technology within the stores helps the company understand customer traffic patterns better.

Metric (Q2 2025)	125 Reimagined Stores (Owned Comp Sales)	Macy's Inc. (Total Comp Sales O+L+M)
Comparable Sales Increase	1.1%	1.9%
Customer Experience Indicator	Higher Net Promoter Scores	Highest-ever Q2 Net Promoter Scores
Traffic/Value Indicator	Higher Traffic and Average Order Value	N/A

Focus on Omnichannel Experience

The core of Macy's, Inc.'s technological strategy is creating a seamless omnichannel experience (the integration of physical and digital channels). This means stores function as fulfillment centers, supporting online sales through services like curbside pickup and same-day delivery.

The 'GoForward' businesses, which represent the parts of the company focused on this integrated, multi-channel approach, showed strong growth. These businesses, on an owned-plus-licensed-plus-marketplace (O+L+M) basis, grew comparable sales by 2.2% in Q2 2025. This growth demonstrates that the investments in a scalable technology platform and streamlined fulfillment are starting to pay off by delivering a more convenient and frictionless customer experience.

Macy's, Inc. (M) - PESTLE Analysis: Legal factors

Compliance with Evolving Minimum Wage Laws

The patchwork of state and local minimum wage laws in the U.S. presents a continuous compliance challenge for a national retailer like Macy's, Inc. While the federal minimum wage remains at a static $7.25 per hour, the average state minimum wage is now approximately $12.47 per hour, with many major markets exceeding that significantly. This means Macy's must constantly monitor and adjust pay across its nearly 700 locations.

However, Macy's has proactively moved beyond the legal minimums to remain competitive in a tight labor market. They achieved a national minimum wage of $15 per hour by May 2022, and as of 2025, the company reports its average base pay is above $17 per hour, with average total pay reaching $20 per hour. This strategy mitigates the direct financial risk from minimum wage increases in most jurisdictions, but it does lock in higher labor costs across the board.

Here's the quick math: paying $15/hour minimum, as Macy's does, is a 107% premium over the federal minimum wage of $7.25/hour. It's defintely a smart move for talent retention.

• Monitor 19 states with minimum wage laws exceeding $15/hour.
• Manage wage compression risk for existing mid-level staff.
• Budget for an average total pay of $20/hour per employee.

Heightened Focus on Financial Reporting and Internal Controls

Macy's faces intense regulatory and investor scrutiny following the recent disclosure of a material weakness in its internal control over financial reporting. This weakness was identified after an internal investigation revealed a single former employee intentionally made erroneous accounting entries to understate delivery expenses from the fourth quarter of 2021 through the third quarter of 2024, totaling approximately $151 million in misstated expenses.

As of the fiscal year ended February 1, 2025, the company's management and its independent registered public accounting firm, KPMG LLP, have had to devote significant resources to remediate this material weakness. The legal imperative is to re-design process-level control activities to prevent employee circumvention, a costly and time-consuming process that will be heavily scrutinized by the SEC and investors. The failure to have robust controls on manual journal entries over delivery and other non-merchandise expenses was the root cause.

The table below summarizes the financial impact and required action from the misstatement:

Legal/Financial Event	Amount/Timeline	Compliance Action (2025 Focus)
Cumulative Accounting Misstatement	$151 million	Restatement of historical financial statements.
Period of Misstatement	Q4 2021 through Q3 2024	Re-evaluation of risk of employee circumvention.
Internal Control Status (as of Feb 1, 2025)	Material Weakness Identified	Implementation of re-designed process-level controls.

Strict Human Rights Policy Prohibiting Forced Labor

The legal landscape for supply chain ethics, particularly concerning forced labor, has become significantly stricter, driven by U.S. laws prohibiting the import of goods made with forced labor. Macy's, Inc. responded by updating its Human Rights Policy on January 7, 2025, and its Human Trafficking and Slavery in the Supply Chain Statement on February 5, 2025.

This policy is not just aspirational; it carries legal weight and requires concrete actions. The company strictly prohibits all forms of forced labor and mandates that private brand suppliers conduct risk-based due diligence to ensure no goods are sourced from entities on the U.S. Commerce Department Entity List. To be fair, this level of diligence adds significant cost to the sourcing process.

Macy's manages this risk through a multi-pronged compliance program:

• Independent third-party audits of private brand suppliers are conducted annually.
• Suppliers must adhere to a Vendor Code of Conduct based on international standards like the International Labor Organization (ILO).
• A dedicated team works on continuous improvement aligned with the Vendor and Supplier Code of Conduct.

Need to Manage Increased Compliance Costs from New Consumer Data Privacy Regulations

The lack of a single federal data privacy law means Macy's must navigate a rapidly expanding maze of state-level consumer data privacy regulations. This substantially increases compliance costs. Macy's updated its Notice of Privacy Practices in October 2025 to address the rights of consumers across a growing list of states, acknowledging the complex environment.

The compliance burden is not limited to California (CCPA); it now includes over a dozen other states like Colorado, Connecticut, Utah, and Virginia, each with its own nuances on consumer rights. The core legal requirement is providing consumers with the right to know what personal information is collected and the right to opt out of the 'sale or sharing' of that data.

A Consumer Reports analysis from April 2025, however, highlighted a key risk: Macy's and other retailers may not be consistently complying with legally enforceable opt-out demands under California and Colorado law, which exposes the company to potential enforcement actions and litigation risk. The investment in data infrastructure and legal counsel to manage these diverse state regulations is a material, ongoing operational cost that must be factored into the 2025 fiscal outlook.

Macy's, Inc. (M) - PESTLE Analysis: Environmental factors

You, as a financial decision-maker, should see Macy's, Inc.'s environmental strategy not just as compliance, but as a critical operational de-risking and brand value play, especially with the 2025 targets drawing near. The company's focus is on waste reduction, sustainable sourcing, and energy efficiency, which directly maps to cost control and mitigating supply chain volatility. It's a smart move to embed these goals into their Mission Every One platform.

Goal to increase the in-store recycling rate to 80% by the end of 2025

Macy's, Inc. has a clear, near-term goal to increase its in-store recycling rate to 80% by the end of 2025. This is a significant push toward a more circular economy, focusing on diverting operational waste-like cardboard, hangers, and advertising assets-from landfills. To achieve this, they're using technology like Radio-Frequency Identification (RFID) to track the weights and participation of store cardboard recycling, which gives them the granular data needed to manage waste effectively across their large store footprint. It's a classic retail efficiency challenge: scale the best practices across hundreds of locations.

The company is also tackling less obvious waste streams, like outdated beauty products collateral, by launching pilot programs to ship these materials to third-party recyclers instead of disposing of them in-store. This kind of program diversification is defintely necessary to hit that 80% target.

Aiming for 40% of Private Brand products to use preferred, sustainably sourced fibers by 2025

The shift to preferred, sustainably sourced fibers within Macy's, Inc.'s Private Brand portfolio is a major supply chain initiative. The 2025 target is ambitious: 40% of Private Brand products managed by the Macy's Sourcing team must be made with these preferred fibers. This is a crucial step towards their more aggressive 2030 goal of achieving 100% preferred materials in their Private Brands.

The focus is on key, high-volume materials, which is where the real impact-and risk-lies. They are prioritizing:

• Cotton: Partnering with programs like the U.S. Cotton Trust Protocol for traceability.
• Synthetic fibers: Primarily polyester, with a focus on recycled content.
• Wood-based materials: Ensuring responsible sourcing to address deforestation risk.

Here's the quick math on the product side: moving 40% of your in-house product line to a new sourcing standard by the end of 2025 requires deep integration with Tier 1 and Tier 2 suppliers, plus the cost of third-party certification (like OEKO-TEX STD 100, which they aim for 75% compliance on by 2025).

Committed to a 25% water reduction goal in high-stress manufacturing areas by 2025

Water scarcity is a growing, material risk for the apparel sector, so Macy's, Inc.'s commitment to water reduction is a direct response to climate-related supply chain threats. The goal is a 25% reduction in water use by Private Brand's third-party manufacturing facilities in areas identified as having high water stress.

The baseline for this reduction is either 2019 or 2021, depending on the specific program, but the 25% target remains fixed for 2025. This effort is supported by their Private Brand Water Policy, which involves collaborating with suppliers, community organizations, and industry experts like the World Wildlife Fund (WWF) and the Planet Water Foundation (PWF) to implement contextual water targets.

This isn't just about efficiency; it's about building resilience in their global value chain, especially in regions where water issues could halt production.

Already operates over 95 active solar sites nationwide to reduce energy consumption

Macy's, Inc. has been steadily building out its renewable energy infrastructure, primarily through solar. As of the most recent reporting, the company operates more than 95 active solar sites nationwide. This includes a mix of onsite solar installations on their buildings and participation in community solar projects.

In 2023, these sites collectively produced approximately 54 million kWh of power. While Macy's, Inc. often does not retain the renewable energy credits (RECs) for most of this power, the installations demonstrate a concrete investment in reducing their operational carbon footprint and energy costs.

This is part of their broader energy strategy, which includes a 2025 goal to reduce overall energy consumption by 10% from a 2018 baseline.

2025 Environmental Goal	Target Amount/Value	Key Metric/Action
In-Store Recycling Rate	80%	Increase material diversion from landfills; utilizing RFID tracking for cardboard recycling.
Private Brand Preferred Fibers	40% of products	Products managed by Macy's Sourcing team to use preferred sustainable fibers (e.g., Better Cotton, recycled polyester).
Supply Chain Water Reduction	25% reduction	Water use reduction in Private Brand third-party manufacturing in high-water stress areas (vs. 2019/2021 baseline).
Active Solar Sites	More than 95 sites	Number of solar installations (onsite and community solar) contributing to energy efficiency.

The next step is for your team to cross-reference these environmental targets with Macy's, Inc.'s capital expenditure (CapEx) for 2025 to see where the rubber meets the road on investment. Finance: Map CapEx against these four environmental initiatives by end of next week.