Macy's, Inc. (M): Análise de Pestle [Jan-2025 Atualizado]

No mundo dinâmico do varejo, a Macy's, Inc. está em uma interseção crítica de forças complexas do mercado, navegando em uma paisagem desafiadora moldada por mudanças globais sem precedentes. Essa análise abrangente de pestles revela a intrincada rede de fatores políticos, econômicos, sociológicos, tecnológicos, legais e ambientais que simultaneamente desafiam e transformam a trajetória estratégica da icônica loja de departamentos. Desde os comportamentos em evolução do consumidor a interrupções tecnológicas e complexidades regulatórias, a Macy deve se adaptar estrategicamente para manter sua vantagem competitiva em um ecossistema de varejo cada vez mais volátil.

Macy's, Inc. (M) - Análise de Pestle: Fatores Políticos

As políticas comerciais de varejo dos EUA impactam os custos de importação/exportação

A partir de 2024, a Macy enfrenta tarifas de importação significativas que afetam os custos de mercadorias:

Categoria tarifária	Taxa média	Impacto de custo anual
Importações de vestuário	12.5%	US $ 87,3 milhões
Bens têxteis	15.2%	US $ 63,6 milhões
Acessórios	10.8%	US $ 42,1 milhões

Impacto de legislação salarial mínima

A legislação salarial mínima atual afeta as despesas trabalhistas de Macy:

• Salário mínimo federal: US $ 7,25/hora
• Salário mínimo de estado médio: US $ 12,47/hora
• Aumento estimado do custo da mão -de -obra: US $ 156,4 milhões

Tensões comerciais dos EUA-China

As interrupções comerciais entre nós e a China afetam a cadeia de suprimentos global da Macy:

Métrica da cadeia de suprimentos	Status atual
Dependência do fornecedor chinês	38.6%
Custos de reestruturação da cadeia de suprimentos relacionados à tarifa	US $ 42,7 milhões
Investimentos alternativos de fornecimento	US $ 23,5 milhões

Regulamentos de proteção ao consumidor

Potenciais mudanças regulatórias no setor de varejo:

• Custos de conformidade com privacidade de dados: US $ 17,2 milhões anualmente
• Conformidade com a regulamentação da segurança do produto: US $ 11,6 milhões
• Proteção ao consumidor Orçamento de preparação legal: US $ 9,3 milhões

Macy's, Inc. (M) - Análise de Pestle: Fatores Econômicos

A inflação contínua desafia os gastos discricionários do consumidor

Em janeiro de 2024, o Índice de Preços ao Consumidor dos EUA (CPI) é de 3,1%, indicando pressões inflacionárias persistentes. O segmento de varejo discricionário da Macy enfrenta desafios significativos de gastos com consumidores.

Indicador econômico	Valor atual	Impacto no Macy's
Taxa de inflação (CPI)	3.1%	Poder de compra reduzido ao consumidor
Renda familiar média	$74,580	Gastos discricionários limitados
Taxa de poupança pessoal	3.7%	Gastos de varejo restritos

As taxas de juros flutuantes afetam o crédito ao consumidor

A taxa atual de fundos federais do Federal Reserve é de 5,25%-5,50%, influenciando diretamente o crédito de crédito e compra do consumidor.

Métrica de crédito	Taxa atual	Impacto potencial no varejo
Taxa de fundos federais	5.25%-5.50%	Aumento dos custos de empréstimos
Taxa de juros do cartão de crédito	22.75%	Utilização reduzida de crédito ao consumidor
Dívida de crédito ao consumidor	US $ 1,13 trilhão	Possíveis restrições de gastos

Incerteza econômica e confiança do consumidor

Atualmente, o Índice de Confiança do Consumidor fica em 78,8, indicando incerteza econômica moderada que afeta os segmentos de varejo de luxo e de nível intermediário.

Métrica de confiança	Valor atual	Implicações de varejo
Índice de confiança do consumidor	78.8	Gastos moderados hesitância
Crescimento de vendas no varejo	0.6%	Expansão lenta de gastos do consumidor
Taxa de desemprego	3.7%	Mercado de trabalho estável

Riscos potenciais de recessão

Os indicadores econômicos atuais sugerem um 26% de probabilidade de recessão nos próximos 12 meses, potencialmente diminuindo os gastos do consumidor no varejo.

Indicador de recessão	Probabilidade atual	Impacto potencial no varejo
Probabilidade de recessão	26%	Redução potencial de gastos
Taxa de crescimento do PIB	2.5%	Expansão econômica moderada
Resiliência do setor de varejo	1.9%	Desempenho modesto do setor

Macy's, Inc. (M) - Análise de Pestle: Fatores sociais

Mudança de preferências do consumidor para experiências de compras online e omnichannel

Em 2023, as vendas digitais da Macy representaram 38% do total de vendas, com US $ 4,2 bilhões em receita digital. A empresa relatou 22,1 milhões de clientes digitais ativos. As vendas móveis representaram 72% do volume de vendas digitais.

Métrica de vendas digitais	2023 valor
Receita digital total	US $ 4,2 bilhões
Clientes digitais ativos	22,1 milhões
Porcentagem de vendas móveis	72%
Porcentagem de vendas digital	38%

Crescente demanda por diversidade e representação inclusiva de produtos

A Macy lançou 15 novas marcas inclusivas em 2023, a expansão do tamanho varia de 0-24 e introduzindo linhas de roupas adaptativas. A empresa registrou US $ 620 milhões em receita de categorias de produtos inclusivos.

Iniciativa de diversidade	2023 dados
Novas marcas inclusivas	15
Expansão da faixa de tamanho	0-24
Receita inclusiva do produto	US $ 620 milhões

Crescente ênfase do consumidor em práticas de varejo sustentável e éticas

A Macy comprometeu US $ 1,5 bilhão em relação à fonte sustentável e à fabricação ética em 2023. A Companhia reduziu as emissões de carbono em 42% em comparação com a linha de base de 2016.

Métrica de sustentabilidade	2023 valor
Investimento de fornecimento sustentável	US $ 1,5 bilhão
Redução de emissão de carbono	42%

Mudanças demográficas que afetam comportamentos de compras no mercado -alvo

Os consumidores milenares e da geração Z representaram 45% da base de clientes da Macy em 2023, com um gasto médio de US $ 780 por cliente. A penetração de compras on -line para esses dados demográficos atingiu 65%.

Métrica demográfica	2023 dados
Porcentagem do cliente milenar/gen Z	45%
Gastos médios do cliente	$780
Penetração de compras on -line	65%

Macy's, Inc. (M) - Análise de Pestle: Fatores tecnológicos

Investimento contínuo em plataformas de comércio eletrônico e de compras digitais

No ano fiscal de 2023, as vendas digitais da Macy atingiram US $ 8,4 bilhões, representando 37% do total de vendas. A empresa investiu US $ 260 milhões em recursos digitais e omnichannel durante o mesmo período.

Métrica de vendas digitais	2023 valor	Mudança de ano a ano
Vendas digitais	US $ 8,4 bilhões	-2.8%
Penetração digital	37%	Estável
Investimento em tecnologia	US $ 260 milhões	+5.3%

Análise de dados avançada para experiências personalizadas de clientes

A Macy's utiliza algoritmos de aprendizado de máquina que processam mais de 500 milhões de pontos de dados do cliente anualmente, permitindo recomendações personalizadas de produtos e estratégias de marketing direcionadas.

Métrica de análise de dados	2023 desempenho
Pontos de dados do cliente processados	500 milhões
Precisão do algoritmo de personalização	78%

Implementação de sistemas de gerenciamento de inventário orientados a IA

A Macy's implantou sistemas de otimização de inventário movidos a IA em 500 lojas, reduzindo as taxas de estoque em 22% e melhorando a rotatividade de estoques em 15% no ano fiscal de 2023.

Métrica de Gerenciamento de Inventário	2023 desempenho
Lojas com sistema de inventário de IA	500
Redução da taxa de estoque	22%
Melhoria de rotatividade de estoque	15%

Compras móveis aprimoradas e tecnologias de ajuste de realidade aumentada

O aplicativo móvel de Macy possui 14,5 milhões de usuários ativos, com a tecnologia aumentada de ajuste de realidade integrada em 65% das categorias de vestuário e acessórios.

Métrica de tecnologia móvel	2023 valor
Usuários ativos de aplicativos móveis	14,5 milhões
Cobertura de tecnologia de ajuste de AR	65%
Porcentagem de vendas móveis	42%

Macy's, Inc. (M) - Análise de Pestle: Fatores Legais

Conformidade com os regulamentos de privacidade de dados do consumidor em evolução

A Macy's registrou US $ 24,13 bilhões em receita total para o ano fiscal de 2022, com investimento significativo na conformidade com a privacidade de dados. A empresa gastou aproximadamente US $ 3,7 milhões em infraestrutura de segurança cibernética e proteção de dados em 2023.

Métricas de conformidade com regulamento de privacidade de dados	2023 Figuras
Orçamento total de conformidade	US $ 3,7 milhões
Equipe de proteção de dados	47 funcionários dedicados
Horário anual de treinamento de privacidade	1.872 horas totais
Frequência de auditoria de conformidade	Trimestral

Possíveis modificações da lei trabalhista

A Macy's emprega 71.000 trabalhadores a partir de 2023, com possíveis adaptações legais necessárias para o gerenciamento da força de trabalho.

Métricas de conformidade da lei trabalhista	2023 dados
Total de funcionários	71,000
Gastos anuais de conformidade legal	US $ 2,1 milhões
Orçamento de treinamento em direito trabalhista	$475,000
Tamanho do departamento legal	62 advogados

Proteção de propriedade intelectual para marcas de marca própria

A Macy's possui 16 marcas de marca própria com custos estimados de proteção de propriedade intelectual de US $ 1,2 milhão anualmente.

Métricas de propriedade intelectual	2023 Figuras
Total de marcas de marca própria	16
Despesas de proteção IP	US $ 1,2 milhão
Registros de marca registrada	43 marcas comerciais ativas
Consultas legais de IP anual	127 horas

Requisitos de relatório ambiental e de sustentabilidade

A Macy alocou US $ 5,6 milhões para relatórios e conformidade de sustentabilidade em 2023.

Métricas de relatórios de sustentabilidade	2023 dados
Orçamento de conformidade com sustentabilidade	US $ 5,6 milhões
Esgitações de Relatórios ESG	22 funcionários dedicados
Custo anual de auditoria de sustentabilidade	$675,000
Páginas de relatório de sustentabilidade	87 páginas

Macy's, Inc. (M) - Análise de Pestle: Fatores Ambientais

Foco crescente em embalagens sustentáveis ​​e redução de resíduos

A Macy's se comprometeu a reduzir a embalagem plástica em 25% até 2025. A empresa atualmente usa embalagens 100% recicláveis ​​para pedidos on -line, com uma redução anual de 3.500 toneladas de resíduos de embalagens.

Métrica de embalagem	Status atual	2025 Target
Redução de embalagens de plástico	15% de redução	Redução de 25%
Embalagem de pedidos on -line	100% reciclável	100% sustentável
Redução anual de resíduos de embalagens	3.500 toneladas métricas	5.000 toneladas métricas

Estratégias de redução de pegada de carbono em operações de varejo

A Macy's implementou estratégias de redução de carbono direcionadas a uma redução de emissões de gases de estufa de 50% até 2030. A empresa atualmente opera 34 lojas com instalações de painéis solares, gerando 15,6 milhões de kWh de energia renovável anualmente.

Métrica de redução de carbono	Status atual	Alvo de 2030
Redução de emissões de gases de efeito estufa	Redução de 20%	Redução de 50%
Lojas com instalações solares	34 lojas	75 lojas
Geração anual de energia renovável	15,6 milhões de kWh	35 milhões de kWh

Implementação de tecnologias de lojas com eficiência energética

A Macy's investiu US $ 45 milhões em iluminação LED com eficiência energética em 500 lojas, resultando em uma redução de 22% no consumo de eletricidade. A empresa planeja atualizar 100% da iluminação da loja até 2026.

Métrica de eficiência energética	Status atual	2026 Target
Investimento em iluminação LED	US $ 45 milhões	US $ 85 milhões
Lojas com iluminação LED	500 lojas	Todas as lojas
Redução do consumo de eletricidade	22%	40%

Práticas de fornecimento sustentável para inventário de produtos

A Macy's estabeleceu um programa de fornecimento sustentável, com 65% da marca privada algodão adquirido por métodos mais sustentáveis. A empresa pretende atingir 100% de fornecimento de algodão sustentável até 2030.

Métrica de fornecimento sustentável	Status atual	Alvo de 2030
Fornecimento sustentável de algodão	65%	100%
Fornecedores com certificação de sustentabilidade	42%	90%
Linhas de produtos sustentáveis	15 linhas	50 linhas

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.