Macy's, Inc. (M): Business Model Canvas [Dec-2025 Updated]

You're looking at a major retailer trying to pivot hard, and honestly, the Business Model Canvas for Macy's, Inc. tells a fascinating story of necessary, sometimes painful, transformation. After two decades analyzing these giants, I see a company executing its Bold New Chapter strategy: shedding about 150 underperforming stores by 2026 while simultaneously pouring capital into automation and growing luxury segments like Bluemercury. They are targeting net sales up to $21.625 billion for fiscal 2025, but this pivot hinges on making their omnichannel experience seamless and growing non-merchandise revenue streams like their Media Network, which pulled in $42 million in Q3 2025 alone. Want to see exactly how they're balancing massive real estate costs against loyalty program value and a focused store count of 350 go-forward locations? Dive into the nine building blocks below to see the blueprint for their next act.

Macy's, Inc. (M) - Canvas Business Model: Key Partnerships

You're looking at the crucial external relationships that power Macy's, Inc.'s operations as of late 2025. These aren't just transactional links; they are deep integrations that affect everything from customer financing to product flow and community standing.

Citibank, N.A. (Department Stores National Bank) for credit card portfolio

The relationship with Citibank, N.A., through its unit Citi Retail Services, remains central to Macy's financing and loyalty engine. The Program Agreement, which covers both Macy's and Bloomingdale's private label and co-branded cards, was extended until March 31, 2030. Historically, net credit card revenue was a significant earner, hitting $751 million in the year before the pandemic. While recent shifts to debit and Buy Now, Pay Later options may temper growth, credit card revenues historically represented about 3% of net sales. Macy's receives fees and shares in profits based on a tiered return structure under this arrangement.

American Express for co-branded Macy's credit card network

The open-loop Macy's American Express Card extends the loyalty program beyond Macy's stores, allowing cardholders to earn rewards everywhere American Express is accepted. The structure is tiered based on annual spend at Macy's, which determines the in-store earning rate, plus a flat rate for external spending. The average credit limit for members who matched with this card or similar cards was reported as $2,083. Here's how the rewards stack up for external spending:

Accumulating 1,000 points translates into a $10 Star Money reward, which must be redeemed within 30 calendar days. To achieve the top tier, Platinum status, a customer must spend $1,200 or more annually at Macy's to earn 5 points per dollar on those purchases.

Third-party logistics providers for final-mile delivery and shipping

Macy's relies on a network of third-party logistics (3PL) providers to manage the complexity of its omnichannel fulfillment, especially for vendors shipping directly to customers or into stores. This partnership structure is key to the 'Bold New Chapter' strategy, which targets significant cost reduction. Macy's is actively consolidating its vendor base and implementing supply chain automation, aiming for $100 million in savings in the current fiscal year, with an expected run-rate savings of $235 million by 2026. 3PLs specializing in Macy's vendor requirements focus on strict compliance with routing guides, labeling standards, and EDI (Electronic Data Interchange) compliance to avoid costly chargebacks. Some providers claim to help fashion accessory brands reduce routing violations by 75% within 60 days of onboarding.

National and private brand vendors for exclusive product assortment

Vendor relationships are critical for maintaining a differentiated offering. Macy's has a stated goal for its private label products to account for 25% of annual sales by 2025. This strategy aims to bolster profitability, as private label items have historically proven profitable. The success of the overall business, reflected in the raised fiscal 2025 net sales guidance between $21.475 billion and $21.625 billion, depends on this mix of exclusive and national brands. The company is also sharpening its focus on its top national brands.

The vendor ecosystem supports the company's performance, which saw Q3 2025 net sales of $4.7 billion. Key elements of vendor partnership include:

• Maintaining inventory KPIs for accurate stock levels.
• Ensuring fast shipping to meet customer expectations.
• Adhering to strict packaging and labeling specifications.
• Focusing on product assortments that vary by store size and trade area.

Big Brothers Big Sisters as a key Mission Every One charitable partner

Big Brothers Big Sisters (BBBS) is a core partner under Macy's Mission Every One social purpose platform. Macy's, Inc. has a commitment to give more than $125 million to aligned nonprofit organizations by 2025. The holiday campaign is a major fundraising driver for this partnership. The 2024 holiday campaign raised more than $3.7 million via in-store round-ups and online donations, bringing the total raised since 2022 to over $13 million as of February 2025. For the 2025 holiday season, a direct impact mechanism involves:

• Customers rounding up in-store purchases from November 1 through December 24.
• Donating directly online during the campaign period.
• Purchasing exclusive merchandise, where 50% of the purchase price benefits BBBS through December 31, 2025.

The partnership also involves community engagement, such as having Bigs and Littles participate in the Macy's Thanksgiving Day Parade®.

Macy's, Inc. (M) - Canvas Business Model: Key Activities

You're looking at the core actions Macy's, Inc. is taking right now to reshape its business under the 'Bold New Chapter' plan. Honestly, these activities are where the capital is flowing and where the near-term success of the entire strategy will be judged.

Executing the Bold New Chapter strategy across all three nameplates

The overarching activity is driving the three strategic priorities of the 'Bold New Chapter' across Macy's, Bloomingdale's, and Bluemercury. This involves a shift from an operationally-led to a customer-led strategy, focusing on improving the customer experience and driving profitable growth. For instance, the company is reinvesting savings from closures into the go-forward business, aiming for low-single-digit annual comparable Owned + Licensed + Marketplace sales growth beginning in 2025. The success of the 'Reimagine 125' locations, which achieved 1.4% comparable sales growth in Q2 2025, shows this execution is starting to pay off in specific areas. The company raised its full-year 2025 outlook based on this progress.

Key strategic focus areas include:

• Strengthening the Macy's nameplate assortment and environment.
• Accelerating growth for the luxury divisions, Bloomingdale's and Bluemercury.
• Simplifying and modernizing end-to-end operations.

Managing the Star Rewards loyalty program and customer data analytics

This activity is crucial for customer retention and data capture, which feeds personalization efforts. The Star Rewards program is a major engine for engagement. As of late 2025, the program has nearly 30 million members. The financial results from the third quarter of fiscal 2025 clearly show the monetization of this customer base. Net credit card revenues hit $158 million, marking a 31.7% increase year-over-year, and this now represents 3.4% of total sales. Furthermore, Macy's Media Network, which leverages customer data for targeted advertising, generated $42 million in revenue in Q3 2025, flat compared to the prior year. The company uses tools like Google Analytics and Adobe Analytics to optimize website performance and customer experience.

Here's a quick look at the loyalty program's financial contribution in Q3 FY2025:

Modernizing the supply chain, including the new China Grove fulfillment center

Supply chain modernization is the third pillar of the strategy, aimed at building a faster, more efficient network. The opening of the new China Grove fulfillment center in October 2025 is a centerpiece of this effort. This facility is the company's largest and most technologically advanced to date. The initial plan for this center was a $584 million investment announced in 2022. The facility spans 2.5 million square feet and is the third site to deploy high-performance automation, featuring an advanced warehouse management system (WMS). Initially, it supports customer fulfillment and store replenishment for the Macy's nameplate, with plans to expand service to other nameplates over the next two years. The goal of right-sizing the supply chain network is to save an estimated $235 million by 2026.

Curating exclusive private label and market brand merchandise

This activity focuses on revitalizing the assortment to improve both relevance and value across all nameplates, with a specific acceleration in the luxury segment. While specific private label revenue percentages for late 2025 aren't public, the results from the luxury brands highlight the success of this curation. Bloomingdale's saw its net sales rise 4.6% in Q2 2025, which outpaced many luxury competitors. This focus on curated, relevant product helped Macy's overall Q2 2025 total net sales reach $4.8 billion, despite a 2.5% decrease compared to the prior year period. The company is also expanding the Bloomingdale's footprint by up to 15 stores and Bluemercury by at least 30 new locations through 2026, indicating a strategic bet on these curated brands.

Optimizing the store portfolio by closing approximately 150 underproductive locations by 2026

This is a necessary, albeit difficult, activity to focus resources on the remaining, more profitable locations. The target remains closing approximately 150 underproductive Macy's locations by the end of fiscal 2026 (January 2027). As of the last reported update, 64 stores had closed in the past year, and the company planned to close 66 in 2025 alone. This aggressive pruning is intended to leave a core fleet of approximately 350 go-forward locations. The company expects to monetize between $600 million and $750 million through asset sales by 2026 to help fund reinvestment.

Store optimization progress as of late 2025:

Finance: draft 13-week cash view by Friday.

Macy's, Inc. (M) - Canvas Business Model: Key Resources

You're looking at the hard assets and core capabilities Macy's, Inc. relies on to execute its strategy as of late 2025. These aren't just line items; they are the engines driving the business.

Extensive real estate portfolio, including flagship and mall anchor locations

The physical footprint remains a massive, if evolving, asset. Analyst estimates for the total value of the real estate holdings range from $5 billion to $14 billion. One valuation scenario places the worth at approximately $10.5 billion. As part of the ongoing footprint optimization, Macy's, Inc. plans to close approximately 150 underproductive locations through 2026, aiming to prioritize investment in approximately 350 go-forward locations. In fiscal 2024, the company closed 64 stores. For the 2025 fiscal year, Macy's, Inc. expects to realize $275 million from sales of its retail properties. Asset sale gains for fiscal 2024 totaled $144 million. As of February 2024, the portfolio included 718 total stores.

Multi-brand portfolio: Macy's, Bloomingdale's (luxury), and Bluemercury (beauty)

The portfolio diversification supports different consumer needs. In the third quarter of fiscal 2025, the company reported total revenue of $4.91 billion. Bloomingdale's showed strength, posting an 8.8% increase in comparable sales in Q3 2025. The company is focused on accelerating luxury growth.

• Bronze members earn 1 point per $1 spent.
• Silver members earn 2 points per $1 spent.
• Gold members earn 3 points per $1 spent.
• Platinum members earn 5 points per $1 spent.

Star Rewards loyalty program with millions of active members

The Star Rewards program drives engagement, with 1,000 accumulated points converting to a $10 Star Money reward. Status tiers are tied to annual Macy's Credit Card spend: Gold status requires spending between $500 and $1,199 annually, while Platinum status requires $1,200 or more. Cardholders start at Silver status.

Proprietary digital platforms and omnichannel technology stack

Macy's, Inc. is actively investing in digital platforms and AI to enhance personalization. The company is working to simplify and modernize end-to-end operations to deliver a scalable technology platform. In Q3 2025, Selling, General, and Administrative (SG&A) expenses as a percentage of total revenues declined 90 basis points to 41.2%. The company returned $150 million to shareholders year-to-date through Q2 2025, and repurchased $50 million in shares during Q3 2025.

Automated fulfillment and distribution network (e.g., the $584 million China Grove DC)

The investment in the China Grove facility, initially announced at more than $584 million, has an increased total capital investment of $640.6 million. This 1.4 million-square-foot facility is designed to support 30% of Macy's digital supply chain. The company is also expanding operations from its existing Houston distribution center with a new, approximately 1 million-square-foot facility in Tomball, Texas.

Macy's, Inc. (M) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Macy's, Inc. right now, late in fiscal 2025. It's a mix of broad appeal and targeted luxury, all tied together digitally.

Broad, curated merchandise assortment from value to luxury price points

Macy's, Inc. is clearly pushing a multi-brand, multi-category strategy that spans the spectrum. The overall comparable sales growth (Owned-Plus-Licensed-Plus-Marketplace or O+L+M) for the third quarter of 2025 was up 3.2%, showing the breadth is working. While the core Macy's nameplate saw O+L+M comparable sales rise 2.0% in Q3 2025, the company is also leaning on its luxury banners for outsized growth. For instance, Bloomingdale's posted a strong 9% comparable sales increase in that same quarter. This curated mix is key; the company is actively managing its product assortment, as evidenced by the focus on categories like women's contemporary, men's tailored clothing, and fine jewelry within the Macy's banner.

Seamless omnichannel experience (buy online, pick up in store, ship from store)

The digital component is a major value driver. Digital Commerce 360 projects Macy's, Inc.'s total web sales for the full year 2025 will hit $7.21 billion. The company is investing heavily here; they committed $3 billion to digital initiatives as part of their 'Bold New Chapter' strategy. The success of the physical footprint is now tied to this digital integration, seen in the 2.7% O+L+M comparable sales growth at the 125 'Reimagined' stores in Q3 2025. These locations are the physical anchors for the omnichannel promise, helping to drive that overall positive comp performance.

High-touch, personalized service in luxury segments (Bloomingdale's, Bluemercury)

The luxury segments are delivering premium service and results. Bloomingdale's net sales rose 8.6% in Q3 2025, with comparable sales up 9%. Bluemercury also contributed with a 1.1% comparable sales increase in the third quarter. To be fair, these segments are less sensitive to the discretionary spending pressures affecting the broader market, and their merchandise margins are reportedly exceeding 45%. The company is clearly using these banners to offer a higher-touch experience that justifies premium pricing and drives margin resilience.

Financial incentives and rewards via the Star Rewards loyalty program

Macy's, Inc. is going all-in on its loyalty base, which now includes nearly 30 million members. The structure is designed to reward spend, especially for cardholders, though every member earns now. Here's the quick math on the earning structure:

Accumulating 1,000 points translates directly into a $10 Star Money reward, which members can use on future merchandise purchases.

Off-price value through the Macy's Backstage store-within-a-store concept

For the value-seeking customer, Macy's Backstage is a significant proposition. As of June 2025, this off-price concept has successfully expanded to nearly 300 Macy's stores nationwide. The performance of Backstage is noted as an ongoing outperformer within the broader Macy's nameplate results for Q3 2025. These locations offer an ever-changing assortment of curated brands at compelling prices, appealing to shoppers looking for the 'thrill of the hunt' within the convenience of a full-line Macy's store.

Macy's, Inc. (M) - Canvas Business Model: Customer Relationships

You're looking at how Macy's, Inc. connects with its customers as of late 2025, which is heavily focused on digital integration and elevating the physical store experience. The numbers show a clear differentiation strategy across the nameplates.

Automated, data-driven personalization via the digital platform and AI

Macy's, Inc. is pushing personalization hard, using data to tailor interactions across channels. This is not just a vague goal; they have concrete metrics showing the scale of this effort. They are regularly reaching over 30 million customers with personalized touch points. Since the program's launch, the company has delivered nearly half a billion tailored offers. To be fair, this focus is translating into action, as 50% of all communications sent to Macy's Star Rewards customers are now personalized. This digital focus supports the overall omnichannel experience.

Dedicated loyalty program management (Star Rewards tiers)

The Star Rewards program remains central, with nearly 30 million members actively engaging. The structure clearly rewards higher spenders, which is key for relationship management. The financial results from the credit card side, which is intrinsically linked to loyalty status, show strong engagement. Net credit card revenues in the third quarter of 2025 hit $158 million, a year-over-year increase of 31.7%, making up 3.4% of total sales for the quarter. The tiers define the value exchange:

Personal Stylist and custom beauty plan services (Bluemercury)

For the prestige beauty segment, the relationship is high-touch and expert-driven, primarily through the Bluemercury banner. While specific utilization numbers for personal stylist appointments or custom beauty plan sign-ups aren't public, the banner's performance validates the strategy. Bluemercury delivered positive comparable sales growth of 1.1% on an owned basis in Q3 2025, marking its 19th consecutive quarter of growth. The banner operates more than 180 locations nationwide, with 39 stores modernized under the 'New Blue' transformation to enhance this intimate, expert-led experience. This focus on curated expertise is a core relationship driver in the luxury beauty space.

Transactional self-service for basic online and in-app functions

Basic transactional needs are met through frictionless digital tools, supported by the growth of Macy's Media Network, which indicates digital advertising engagement. Macy's Media Network revenues for Q3 2025 were $42 million, flat year-over-year, representing 0.9% of sales. This digital infrastructure supports the loyalty program dashboard, which shows members points and recommendations.

High-touch, in-store hospitality at 'Reimagine 125' locations

The physical store relationship is being actively upgraded in 125 key locations under the 'Reimagine 125' initiative. The investment in hospitality and experience is showing up in the results, as these stores outperformed the broader Macy's nameplate fleet. The strategy is clearly working to drive traffic and satisfaction. Here's a quick look at how the renovated fleet compared in Q3 2025:

The commitment to hospitality is a direct counter to purely transactional online shopping. Finance: draft 13-week cash view by Friday.

Macy's, Inc. (M) - Canvas Business Model: Channels

You're looking at how Macy's, Inc. gets its products and services to the customer base as of late 2025, which is heavily weighted toward an omnichannel approach, balancing a streamlined physical footprint with digital strength.

The physical channel is undergoing a significant refinement under the Bold New Chapter strategy, focusing resources on the best-performing locations.

• Macy's full-line department stores: Prioritizing a fleet of approximately 350 go-forward locations through fiscal 2026. The company confirmed the closure of 66 non-go-forward Macy's locations during 2025. The core Macy's nameplate go-forward business saw comparable sales growth of 2.7% on an owned basis in Q3 2025.
• Small-format, off-mall Macy's stores: These are part of the overall fleet strategy, with investments focused on the go-forward locations.
• Macy's Backstage off-price stores: This concept is integrated within full-line stores and contributed to the positive comparable sales growth for the Macy's nameplate in Q3 2025.

The digital channel is a critical driver, complementing the physical experience.

Macy's, Inc. also utilizes its dedicated e-commerce websites and mobile apps for the Bloomingdale's brand, which posted Q3 2025 comparable sales growth of 9.0% on an owned-plus-licensed-plus-marketplace (O+L+M) basis.

The specialty beauty segment operates through distinct, high-touch physical locations.

• Bluemercury standalone shops: As of May 2025, Bluemercury operated across 185 stores and counting. The chain stocks over 200 luxury beauty brands. Bluemercury reported Q3 2025 comparable sales growth of 1.1%. The company plans to open at least 30 new Bluemercury stores and remodel an additional 30 over the next three years from 2024. 39 stores have undergone the 'New Blue' modernization.

The Macy's Media Network is part of the digital advertising network channel, supporting the overall omnichannel strategy, which contributed to Macy's, Inc.'s overall comparable sales growth of 3.2% (O+L+M) in Q3 2025.

You can see the mix of physical and digital channels reflected in the Q3 2025 results where Macy's, Inc. net sales, inclusive of store closures, were $4.7 billion.

Macy's, Inc. (M) - Canvas Business Model: Customer Segments

Macy's, Inc. serves a spectrum of consumers across its three main nameplates, with the core business focusing on the mass-market while luxury banners target higher-income brackets.

The core Macy's customer base is predominantly middle to upper income households, described as resilient and engaged during the third quarter of fiscal 2025. The strategy involves winning back these shoppers through investments in the go-forward fleet, including the upgraded locations.

• Macy's nameplate comparable sales (owned basis) for Q3 2025 were up 2.0%.
• Comparable sales for the Macy's go-forward business (owned basis) increased 2.7% in Q3 2025.
• Comparable sales at the Reimagine 125 locations rose 2.7% (owned basis) in Q3 2025.
• Macy's nameplate net sales were down 2.3% in Q3 2025.

The affluent and luxury-seeking segment is primarily served by Bloomingdale's. This group is seen as a major growth driver, maintaining spending pace even as the broader consumer environment is viewed as more choiceful. To be fair, the success here highlights the K-shaped economy trend.

Bluemercury captures the high-end beauty and skincare enthusiasts, showing consistent performance. This banner achieved its latest reported quarter of growth in Q3 2025, continuing a multi-quarter positive trend.

The financial contribution from credit card holders is significant, underpinning a key part of the Other Revenue stream. This segment is valued for driving substantial net credit card revenue, reflecting a healthy portfolio.

• Net credit card revenues for Q3 2025 reached $158 million.
• This Q3 2025 figure represented 3.4% of total net sales.
• Net credit card revenues increased 31.7% year-over-year in Q3 2025.

Younger, digitally-native shoppers are a focus area, supported by ongoing digital investments that contribute to the omnichannel experience. The marketplace component is integrated into the overall comparable sales metric.

Here's the quick math on the performance across the key nameplates for the third quarter of 2025:

Digital engagement is quantified by projected web sales for the full fiscal year 2025. This segment is crucial for reaching the digitally-native customer.

• Digital Commerce 360 projects Macy's total web sales in 2025 will reach $7.21 billion.

The luxury customer base is defined by income level, with Bloomingdale's targeting an even more affluent demographic than the general Macy's base.

• Nearly half of Macy's, Inc.'s overall customer base earns more than $100,000 annually.

Finance: draft 13-week cash view by Friday.

Macy's, Inc. (M) - Canvas Business Model: Cost Structure

You're looking at the cost side of Macy's, Inc.'s operations as of late 2025. Honestly, for a retailer with a massive physical footprint, the fixed costs are always the elephant in the room. We're talking about the long-term commitments tied up in store leases and real estate ownership, which form a significant, non-negotiable base cost before a single item sells.

The operating expenses, specifically Selling, General, and Administrative (SG&A) expenses, show the company is actively managing its overhead. For the third quarter of fiscal 2025, SG&A expenses were reported at $2.0 billion, which was a decrease of $40 million year-over-year. This reduction reflects the net benefit from closed Macy's locations and ongoing cost containment efforts, though it was partially offset by investments in the go-forward business like the Reimagine 125 locations. As a percentage of total revenues, SG&A expenses actually levered down by 90 basis points to 41.2% in Q3 2025.

Merchandise costs are constantly under pressure, and you see that clearly in the gross margin line. For Q3 2025, the gross margin rate was 39.4%. A major factor here was the 50 basis point tariff impact on that margin. To be fair, the actual impact was better than expected because their mitigation actions performed well.

The investment in the future is clearly visible in capital expenditure, particularly around logistics. Macy's, Inc. recently opened a massive, highly automated fulfillment center in China Grove, North Carolina, representing a significant capital outlay of $640 million. This single facility is a huge chunk of their tech spend, designed to handle nearly 30% of the company's digital supply chain volume. For the entire third quarter of 2025, total capital expenditures were $525 million, which was down from the $649 million spent in the prior year period.

Don't forget the people costs; employee salaries and benefits for a nationwide workforce are a substantial, recurring expense base. This cost category is managed alongside store closures, which provide savings, but the company continues to invest in its teams supporting growth initiatives.

Here's a quick snapshot of some key financial figures that underpin these cost considerations as of the end of Q3 2025:

The cost structure is evolving, moving away from manual processes toward technology-driven efficiency, which means shifting fixed costs from one area (like older real estate) to another (like advanced warehouse infrastructure).

The key cost drivers you need to watch include:

• High fixed costs from store leases and real estate ownership.
• Employee salaries and benefits for a large, nationwide workforce.
• Ongoing technology investment, like the $640 million automation hub.
• Merchandise costs subject to external factors like tariffs.

Finance: draft 13-week cash view by Friday.

Macy's, Inc. (M) - Canvas Business Model: Revenue Streams

You're looking at the core ways Macy's, Inc. brings in cash right now, which is key for any valuation model you're building. It's not just about what you buy off the rack; it's about the whole ecosystem they've built around the transaction.

The biggest chunk, naturally, comes from selling goods. The company has set its full-year fiscal 2025 guidance for net sales-which covers the merchandise sales through physical stores and e-commerce-in a tight range. Here's the quick math on that expectation:

• Merchandise sales through physical stores and e-commerce (FY 2025 guidance): $21.475B to $21.625B.

To give you a sense of scale, in the third quarter of fiscal 2025, the reported net sales were $4.71 billion, which was a slight dip of 0.6% from the year-ago quarter, but still beat analyst expectations. Still, the growth in comparable sales-which is what you really watch-was positive, with owned-plus-licensed-plus-marketplace comps up 3.2% for that quarter.

Beyond the racks, Macy's, Inc. has two other significant, non-merchandise revenue streams that are growing in importance, often grouped under Other Revenue. In Q3 2025, this category totaled $200 million, a year-over-year increase of 24.2%. This bucket is where the financial services and media network income sits.

The credit card revenue is definitely showing strength, driven by the health of the proprietary portfolio and prudent loss management. That $158 million in Q3 2025 is a solid indicator of the value of their customer financing arm. The Macy's Media Network, while smaller, is also a key part of the modern retail model, monetizing their customer data and digital traffic.

Finally, you can't ignore the capital allocation strategy tied to their physical footprint. Macy's, Inc. is actively working to unlock value from its real estate holdings, which is a separate, lumpy source of cash flow. They are targeting significant proceeds from asset monetization, primarily from the sale of non-core real estate and closed distribution centers. This target is set to be realized over the next few years:

• Asset monetization from the sale of non-core real estate (targeting through 2026): $600M-$750M.

For context, in the first nine months of fiscal 2025, asset sale gains were $12 million, which shows the ongoing nature of this activity, though it's not as large as the full-year target suggests. The licensing fees and commissions from in-store licensed departments are generally embedded within the merchandise sales figures or are part of the overall owned-plus-licensed sales metric, but a distinct, standalone revenue number for just that line item wasn't separately broken out in the latest reports, so we treat it as part of the core merchandise stream for now.