Macy's, Inc. (M): Analyse du Pestle [Jan-2025 Mise à jour]

Dans le monde dynamique de la vente au détail, Macy's, Inc. se dresse à une intersection critique de forces du marché complexes, naviguant dans un paysage difficile façonné par des changements mondiaux sans précédent. Cette analyse complète du pilon dévoile le réseau complexe de facteurs politiques, économiques, sociologiques, technologiques, juridiques et environnementaux qui sont simultanément stimulants et transformés de la trajectoire stratégique du magasin emblématique. De l'évolution des comportements des consommateurs aux perturbations technologiques et aux complexités réglementaires, Macy doit s'adapter stratégiquement pour maintenir son avantage concurrentiel dans un écosystème de vente au détail de plus en plus volatile.

Macy's, Inc. (M) - Analyse du pilon: facteurs politiques

Les politiques commerciales de vente au détail aux États-Unis ont un impact sur les coûts d'importation / d'exportation

En 2024, Macy est confronté à des tarifs d'importation importants affectant les coûts de marchandises:

Catégorie de tarif	Taux moyen	Impact annuel des coûts
Imports de vêtements	12.5%	87,3 millions de dollars
Marchandises textiles	15.2%	63,6 millions de dollars
Accessoires	10.8%	42,1 millions de dollars

Impact de la législation sur le salaire minimum

La législation actuelle sur le salaire minimum affecte les dépenses de main-d'œuvre de Macy:

• Salaire minimum fédéral: 7,25 $ / heure
• Salaire minimum moyen d'État: 12,47 $ / heure
• Augmentation estimée des coûts de main-d'œuvre annuelle: 156,4 millions de dollars

Tensions commerciales américaines-chinoises

Les perturbations commerciales entre les États-Unis et la Chine ont un impact sur la chaîne d'approvisionnement mondiale de Macy:

Métrique de la chaîne d'approvisionnement	État actuel
Dépendance des fournisseurs chinois	38.6%
Coûts de restructuration de la chaîne d'approvisionnement liés aux tarifs	42,7 millions de dollars
Investissements d'approvisionnement alternatif	23,5 millions de dollars

Règlement sur la protection des consommateurs

Changements réglementaires potentiels dans le secteur de la vente au détail:

• Coûts de conformité de la confidentialité des données: 17,2 millions de dollars par an
• Conformité au réglementation de la sécurité des produits: 11,6 millions de dollars
• Protection des consommateurs Budget de préparation juridique: 9,3 millions de dollars

Macy's, Inc. (M) - Analyse du pilon: facteurs économiques

Les défis de l'inflation en cours sont des dépenses discrétionnaires des consommateurs

En janvier 2024, l'indice des prix à la consommation (IPC) des États-Unis s'élève à 3,1%, indiquant des pressions inflationnistes persistantes. Le segment de détail discrétionnaire de Macy est confronté à des défis de dépenses de consommation importants.

Indicateur économique	Valeur actuelle	Impact sur Macy
Taux d'inflation (IPC)	3.1%	Réduction du pouvoir d'achat des consommateurs
Revenu médian des ménages	$74,580	Dépenses discrétionnaires limitées
Taux d'épargne personnelle	3.7%	Dépenses de vente au détail contraints

Les taux d'intérêt fluctuants ont un impact sur le crédit à la consommation

Le taux actuel des fonds fédéraux de la Réserve fédérale est de 5,25% à 5,50%, influençant directement le crédit et le comportement d'achat des consommateurs.

Métrique de crédit	Taux actuel	Impact potentiel de la vente au détail
Taux de fonds fédéraux	5.25%-5.50%	Augmentation des coûts d'emprunt
Taux d'intérêt de la carte de crédit	22.75%	Utilisation réduite du crédit aux consommateurs
Dette de crédit aux consommateurs	1,13 billion de dollars	Contraintes de dépenses potentielles

Incertitude économique et confiance des consommateurs

L'indice de confiance des consommateurs se situe actuellement à 78,8, indiquant une incertitude économique modérée affectant les segments de vente au détail de luxe et de milieu de niveau.

Métrique de confiance	Valeur actuelle	Implications au détail
Indice de confiance des consommateurs	78.8	Dépenses modérées
Croissance des ventes au détail	0.6%	Expansion des dépenses de consommation lente
Taux de chômage	3.7%	Marché du travail stable

Risques de récession potentiels

Les indicateurs économiques actuels suggèrent un 26% de probabilité de récession dans les 12 prochains mois, potentiellement diminuer les dépenses de consommation de détail.

Indicateur de récession	Probabilité actuelle	Impact potentiel de la vente au détail
Probabilité de récession	26%	Réduction potentielle des dépenses
Taux de croissance du PIB	2.5%	Expansion économique modérée
Résilience du secteur de la vente au détail	1.9%	Performance du secteur modeste

Macy's, Inc. (M) - Analyse du pilon: facteurs sociaux

Changer les préférences des consommateurs vers des expériences de shopping en ligne et omnicanal

En 2023, les ventes numériques de Macy ont représenté 38% du total des ventes, avec 4,2 milliards de dollars de revenus numériques. La société a déclaré 22,1 millions de clients numériques actifs. Les ventes mobiles représentaient 72% du volume des ventes numériques.

Métrique de vente numérique	Valeur 2023
Revenus numériques totaux	4,2 milliards de dollars
Clients numériques actifs	22,1 millions
Pourcentage de ventes mobiles	72%
Pourcentage de ventes numériques	38%

Demande croissante de diversité et de représentation de produits inclusive

Macy's a lancé 15 nouvelles marques inclusives en 2023, élargissant la taille de 0 à 24 ans et introduisant des lignes de vêtements adaptatives. La société a déclaré 620 millions de dollars de revenus provenant des catégories de produits inclusives.

Initiative de diversité	2023 données
Nouvelles marques inclusives	15
Extension de plage de taille	0-24
Revenus de produits inclusifs	620 millions de dollars

L'accent mis sur les consommateurs croissants sur les pratiques de vente au détail durables et éthiques

Macy a engagé 1,5 milliard de dollars pour l'approvisionnement durable et la fabrication éthique en 2023. La société a réduit les émissions de carbone de 42% par rapport à la ligne de base de 2016.

Métrique de la durabilité	Valeur 2023
Investissement d'approvisionnement durable	1,5 milliard de dollars
Réduction des émissions de carbone	42%

Chart démographique affectant les comportements d'achat du marché cible

Les consommateurs du millénaire et de la génération Z ont représenté 45% de la clientèle de Macy en 2023, avec une dépense moyenne de 780 $ par client. La pénétration des achats en ligne pour ces données démographiques a atteint 65%.

Métrique démographique	2023 données
Millennial / Gen Z pourcentage de clientèle	45%
Dépenses moyennes des clients	$780
Pénétration des achats en ligne	65%

Macy's, Inc. (M) - Analyse du pilon: facteurs technologiques

Investissement continu dans les plateformes de commerce électronique et de commerce numérique

Au cours de l'exercice 2023, les ventes numériques de Macy ont atteint 8,4 milliards de dollars, ce qui représente 37% des ventes totales. La société a investi 260 millions de dollars en capacités numériques et omnicanal au cours de la même période.

Métrique de vente numérique	Valeur 2023	Changement d'une année à l'autre
Ventes numériques	8,4 milliards de dollars	-2.8%
Pénétration numérique	37%	Écurie
Investissement technologique	260 millions de dollars	+5.3%

Analyse avancée des données pour les expériences client personnalisées

Macy's utilise des algorithmes d'apprentissage automatique qui traitent plus de 500 millions de points de données clients par an, permettant des recommandations de produits personnalisées et des stratégies de marketing ciblées.

Métrique d'analyse des données	Performance de 2023
Points de données clients traités	500 millions
Précision de l'algorithme de personnalisation	78%

Mise en œuvre des systèmes de gestion des stocks dirigés par l'IA

Macy's a déployé des systèmes d'optimisation des stocks alimentés par l'IA dans 500 magasins, réduisant les taux de stockage de 22% et améliorant le chiffre d'affaires des stocks de 15% au cours de l'exercice 2023.

Métrique de gestion des stocks	Performance de 2023
Magasins avec système d'inventaire AI	500
Réduction du taux d'alimentation	22%
Amélioration du chiffre d'affaires des stocks	15%

Amélioration des achats mobiles et des technologies d'ajustement de la réalité augmentée

L'application mobile de Macy compte 14,5 millions d'utilisateurs actifs, avec une technologie de réalité augmentée intégrée dans 65% des catégories de vêtements et d'accessoires.

Métrique de la technologie mobile	Valeur 2023
Application mobile utilisateurs actifs	14,5 millions
Couverture de la technologie de l'ajustement AR	65%
Pourcentage de ventes mobiles	42%

Macy's, Inc. (M) - Analyse du pilon: facteurs juridiques

Conformité à l'évolution des réglementations de confidentialité des données des consommateurs

Macy's a déclaré 24,13 milliards de dollars de revenus totaux pour l'exercice 2022, avec des investissements importants dans la conformité à la confidentialité des données. La société a dépensé environ 3,7 millions de dollars pour les infrastructures de cybersécurité et de protection des données en 2023.

Métriques de conformité du règlement de confidentialité des données	2023 chiffres
Budget total de conformité	3,7 millions de dollars
Personnel de protection des données	47 employés dévoués
Heures de formation annuelles en matière de confidentialité	1 872 heures au total
Fréquence d'audit de la conformité	Trimestriel

Modifications potentielles du droit du travail

Macy's emploie 71 000 travailleurs en 2023, avec des adaptations juridiques potentielles requises pour la gestion de la main-d'œuvre.

Métriques de la conformité du droit du travail	2023 données
Total des employés	71,000
Dépenses annuelles de conformité juridique	2,1 millions de dollars
Budget de formation en droit du travail	$475,000
Taille du département juridique	62 avocats

Protection de la propriété intellectuelle pour les marques de marques privées

Macy's possède 16 marques de marques privées avec des coûts de protection de la propriété intellectuelle estimés de 1,2 million de dollars par an.

Métriques de la propriété intellectuelle	2023 chiffres
Marques totales de marques privées	16
Dépenses de protection IP	1,2 million de dollars
Inscriptions de la marque	43 marques actives
Consultations juridiques annuelles IP	127 heures

Exigences de déclaration de l'environnement et de la durabilité

Macy a alloué 5,6 millions de dollars aux rapports et à la conformité en matière de durabilité en 2023.

Métriques de rapport de durabilité	2023 données
Budget de conformité en matière de durabilité	5,6 millions de dollars
Personnel des rapports ESG	22 employés dévoués
Coût annuel d'audit de la durabilité	$675,000
Pages de rapport de durabilité	87 pages

Macy's, Inc. (M) - Analyse du pilon: facteurs environnementaux

Accent croissant sur l'emballage durable et la réduction des déchets

Macy's s'est engagée à réduire les emballages en plastique de 25% d'ici 2025. La société utilise actuellement des emballages 100% recyclables pour les commandes en ligne, avec une réduction annuelle de 3 500 tonnes métriques de déchets d'emballage.

Métrique d'emballage	État actuel	Cible 2025
Réduction des emballages en plastique	Réduction de 15%	Réduction de 25%
Emballage de commande en ligne	100% recyclable	100% durable
Réduction annuelle des déchets d'emballage	3 500 tonnes métriques	5 000 tonnes métriques

Stratégies de réduction de l'empreinte carbone dans les opérations de vente au détail

Macy's a mis en œuvre des stratégies de réduction du carbone ciblant une réduction des émissions de gaz à effet de serre de 50% d'ici 2030. La société exploite actuellement 34 magasins avec des installations de panneaux solaires, générant 15,6 millions de kWh d'énergie renouvelable par an.

Métrique de réduction du carbone	État actuel	Cible 2030
Réduction des émissions de gaz à effet de serre	Réduction de 20%	Réduction de 50%
Magasins avec des installations solaires	34 magasins	75 magasins
Génération annuelle des énergies renouvelables	15,6 millions de kWh	35 millions de kWh

Mise en œuvre de technologies de magasin économe en énergie

Macy's a investi 45 millions de dollars dans l'éclairage LED économe en énergie dans 500 magasins, entraînant une réduction de 22% de la consommation d'électricité. La société prévoit de mettre à niveau 100% de l'éclairage des magasins d'ici 2026.

Métrique de l'efficacité énergétique	État actuel	Cible 2026
Investissement dans l'éclairage LED	45 millions de dollars	85 millions de dollars
Magasins avec un éclairage LED	500 magasins	Tous les magasins
Réduction de la consommation d'électricité	22%	40%

Pratiques d'approvisionnement durable pour l'inventaire des produits

Macy's a créé un programme d'approvisionnement durable, avec 65% du coton de marque privé provenant de méthodes plus durables. L'entreprise vise à atteindre un approvisionnement à 100% durable en coton d'ici 2030.

Métrique d'approvisionnement durable	État actuel	Cible 2030
Sourcing durable en coton	65%	100%
Fournisseurs de certification de durabilité	42%	90%
Gammes de produits durables	15 lignes	50 lignes

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.