albert Chan
Macy’s, Inc.
Sector: Department stores Countries of operation: The US (including Puerto Rico and Guam), plus Kuwait and Dubai under license agreements Key product categories: Apparel and accessories for kids, men and women; cosmetics; home furnishings and other consumer goods Annual Metrics [caption id="attachment_151517" align="aligncenter" width="700"]
Fiscal year ends January 30 of the following calendar year*TTM is calculated based on the month ending April 30, 2022[/caption] Summary Founded in 1830 and headquartered in New York City, Macy’s operates stores, websites and mobile applications under its Bloomingdale’s, Bluemercury and Macy’s banners. The retailer sells apparel and accessories for kids, men and women; cosmetics; home furnishings; and other consumer goods. As of January 29, 2022, the company operates 787 stores in the US, including Puerto Rico and Guam: 570 Macy’s, 57 Bloomingdale’s, and 160 Bluemercury stores. Macy’s also operates under license agreements in Dubai, UAE, and Al Zahra in Kuwait. Company Analysis Coresight Research insight: In response to pivoting its merchandise and services to cater to trending consumer categories, Macy’s made several constructive changes in its fiscal 2021 which have showed positive results, with revenue up 41.0% year over year and (0.4) compared to fiscal year 2019. First, Macy’s is investing in digital, with aims for its online channel to comprise $10 billion by 2023. Its digital sales were up 39% compared to fiscal year 2019 and represent 35% of sales—and it has redesigned and relaunched its mobile app, introduced live shopping, expanded 3D room shopping, added PayPal and Venmo in store and online, and introduced a sustainability sitelet. Additionally, it reported that newer, younger customers are engaging through its digital channels. Macy’s launched a digital marketplace in 2022 to further expand its online presence—this will be another positive step in reaching younger customers with new products and emerging brands. Secondly, the company launched three partnerships, with Toys“R”Us, licensed sports products company Fanatics and Pandora jewelry. The company opened five Pandora shop-in-shop locations in November 2021 and plans to add 28 more in 2022. These partnerships have been wise strategic moves, helping the retailer to grow underpenetrated categories, toys and expand its jewelry presence—all reaching younger customers. However, as Macy’s largely caters to the middle market—which is currently struggling—it will have to continue to differentiate itself going forward, introducing more trending apparel and product offerings to keep consumers shopping. The company also opened eight smaller format, off-mall stores during fiscal 2021, which the company reported are seeing strong growth. It plans to open 10 off-mall locations in 2022—including a mix of Bloomies and Bloomingdale’s the Outlet, Freestanding Backstage and Market by Macy’s. Opening small format stores is an intelligent strategic move, as they lack the high overhead costs of a larger format.
| Tailwinds | Headwinds |
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- Deliver fashion and style that meets core and new customer needs for all occasions, through existing and new retail platforms.
- Transform its assortment architecture, fashion curation, inventory productivity and vendor relationships to support these changes.
- Build trust and deliver value to customers through simple, easy-to-understand pricing and promotions driven by advanced analytics.
- Deepen core and new customer engagement through a personalized loyalty program as well as personalized communication and customer experiences across all touchpoints.
- Deliver profitable omnichannel growth by investing in a modern, frictionless digital shopping journey.
- Deliver a seamless user experience at every stage. The company aims to build immersive category-level experiences and a convenient delivery and returns system that is fully connected to stores.
- Enhance product discovery and the checkout process.
- Launch new digital business models.
- Create a tech-enabled, connected omni-ecosystem that supports reimagined store experiences focused on discovery, convenience, service and engagement—delivered through a streamlined store portfolio and new off-mall formats.
- Enhance the connection between its store and digital channels—elevate customer experience standards across the organization, enhance fulfillment options and provide convenience no matter where the customer shops.
- Move toward a faster and more efficient customer fulfillment infrastructure.
- Optimize its network to profitably support the expected continued growth in digital and provide enhanced customer delivery options to create a convenient, fast and efficient customer experience for delivery and returns.
- Enable and accelerate the company’s core priorities through foundational improvements.
- Modernize technology platforms to support and enable growth and embed data and analytics into every aspect of the company’s business.
- Define and create a performance-driven operation model that sets the tone, pace and expectations across the business to execute against the Polaris strategy.
Source: Company reports[/caption]
Company Developments
| Date | Development |
| July 26, 2022 | Macy’s announced the launch of Akwaaba Inns for Hotel Collection, a limited-edition assortment created for Macy’s of functional and fashionable home and décor pieces curated by Monique Greenwood, founder and CEO of Akwaaba Inns. |
| July 25, 2022 | Food Network star Molly Yeh is launching a kitchenware collection exclusively at Macy’s, Girl Meets Farm™ by Molly Yeh featuring a range of cookware, serveware and bakeware. |
| July 20, 2022 | Macy’s announces that, as part of its Polaris strategy, the company will open four new off-mall, small-format stores in the fall of 2022. The locations will include Market by Macy’s, a smaller store that offers customers more to love with its curated assortment of the latest fashion trends, as well as the first-ever dual Market by Macy’s and Macy’s Backstage off-price location. |
| July 18, 2022 | Macy’s expands partnership with WHP Global to bring Toys“R”Us brand to every Macy’s store in America this holiday season. Beginning late July and rolling out through October 15th, the in-store shops will range from 1,000 sq. feet and span up to 10,000 sq. feet in flagship locations in Atlanta, Chicago, Honolulu, Houston, Los Angeles, Miami, New York and San Francisco. |
| June 29, 2022 | Bloomingdale's announces AQUA x Studio 189, a limited-edition collaboration between the retailer's best-selling brand and the artisan-produced fashion luxury lifestyle brand and social enterprise co-founded by luxury executive and educator Abrima Erwiah and actress and activist Rosario Dawson. |
| June 20, 2022 | Macy’s announces it will launch a limited collection of 10,000 free Macy’s firework NFTs (Non-Fungible Tokens). In preparation for the new NFT drop, Macy’s will launch its Discord channel, adding to the company’s roster of social platforms where the brand engages with fans and customers. |
| May 31, 2022 | Macy’s honors national LGBTQ Pride month through a nationwide give-back campaign benefiting The Trevor Project. Additionally, Macy’s will recognize Pride with exclusive merchandise available at select stores, on Macys.com and its app. |
| May 19, 2022 | Macy’s joins Better Cotton to advance its goal of achieving 100 percent preferred materials in exclusive brands by 2030. Better Cotton is an organization that promotes better standards and practices in cotton farming. Better Cotton’s mission is to help cotton communities survive and thrive, while protecting and restoring the environment. |
| April 26, 2022 | Macy’s announces the return of The Workshop at Macy’s, a retail development program for underrepresented brands, with enhanced programming to include new curriculum. Twenty-five entrepreneurs will participate in a five-week program, taking place virtually and in-person in New York City, from April 25 – May 27, 2022. |
| April 21, 2022 | Macy’s celebrates Black creatives with the return of Icons of Style, a collaboration with Black visionaries GooGoo Atkins, Areeayl Goodwin, Matthew Harris, Jerome LaMaar, Ade Samuel and Stella and Blaise Bennett, who will create limited-edition seasonal collections throughout 2022 available on macys.com, the Macy’s app and at select locations nationwide. |
| April 6, 2022 | Macy’s issued notes to redeem approximately $1.1 billion of its near-term debt that was originally maturing in 2023 and 2024. The net result of the issuance and redemptions is an approximately $300 million reduction to its total long-term debt. As a result, the company reported it will have no material debt maturities for the next five years, providing it with financial flexibility. |
| March 31, 2022 | Macy’s announces plans to expand supply chain operations by opening a 1.4 million square foot fulfillment center in North Carolina in 2024. |
| March 30, 2022 | Macy’s appoints Marie Chandoha and Jill Granoff to Board of Directors. |
| March 24, 2022 | Macy’s launches a casual apparel collection with singer Maluma which embraces inclusivity and a fluid design concept that allows shoppers to mix and match between the women’s and men’s collections. It is available in sizes XS to XXL. |
| March 22, 2022 | Macy’s announces it will open 37 Backstage store-within-stores in the spring of 2022. |
| March 2022 | Macy’s launches Own Your Style brand platform, which will help customers discover and express their unique personal style by connecting them with products, advice, inspiration and value. |
| March 2022 | Macy’s announces that Emily Erusha-Hilleque has joined the company as Senior Vice President for Macy’s private brands. |
| March 2022 | Macy’s announces that its private-label brand bar III has launched a collection in collaboration with Nicole Williams English, celebrity designer and television personality. The collection includes spring styles available in sizes XXS to XXL. |
| March 2022 | Macy’s launches Mission Every One, an enterprise-wide social purpose platform built on three impact pillars—people, communities and planet. Macy’s will direct $5 billion of the company’s spend and scaling through 2025, to the partners, products, people and programs that help create a more equitable and sustainable future. |
| January 2022 | Macy’s launches a give-back campaign from February 1–February 28 with the United Negro College Fund (UNCF), the US’s largest minority education organization, to raise funds for scholarships and historically Black colleges and universities. |
| December 2021 | Macy’s announces that its private-label brand, Jenni, is launching a limited-edition exclusive capsule collection in collaboration with social media influencers and viral fashion creators Denise Mercedes and Maria Castellanos. The collection, Style Not Size, focuses on loungewear in sizes XS to XXL and plus sizes 1X to 3X, ranging from $34.50 to $59.50. |
| November 2021 | Macy’s celebrates National Believe Week by doubling its donation to Make-A-Wish as part of Macy’s annual Believe letter-writing campaign. From the start of Believe campaign through its final day on December 24, for every letter sent to Santa online or dropped off in Macy’s stores, Macy’s will donate $1 to Make-A-Wish—up to $1 million. |
| November 2021 | Macy’s launches its first-ever NFT series in celebration of the 95th Annual Macy’s Thanksgiving Day Parade. Macy’s will celebrate with a special drop of 9,500 free NFT artworks featuring iconic balloons in support of Make-A-Wish. |
| November 2021 | Macy’s announces plans to launch a curated digital marketplace in the second half of 2022. The new marketplace will significantly expand the company’s assortment in existing categories and brands and introduce a range of new categories—by enabling selected third-party merchants to sell their products on Macys.com and Bloomingdales.com. |
| November 2021 | Macy’s announces a tuition benefit program and raises its company-wide minimum rate to $15 per hour. |
| November 2021 | Macy’s announces that its private-label brand, bar III, launches a limited-edition exclusive collection in collaboration with Sofia Richie. Created in partnership with Reunited Clothing, the Sofia Richie collection features casual silhouettes in knits, faux-leather outerwear and matching sets. |
| October 2021 | Macy’s announces that its private-label brand, I.N.C. International Concepts is launching a collection in collaboration with Jeannie Mai, the Emmy-award winning host of TV show The Real. Designed in partnership with Reunited Clothing, the Jeannie Mai x I.N.C. collection features new fall must-haves, including elevated loungewear, suiting, knits and statement pieces. |
| October 2021 | Macy’s helps shoppers get ready for the holidays with new brands and services including an upgraded app, live shopping, a personalized fragrance finder, 3D room planning and payment solutions PayPal and Venmo. |
| September 2021 | Macy’s plans to hire 76,000 colleagues for the holiday season and beyond. |
| August 2021 | Bloomingdale’s opens the doors today of its very first Bloomie’s store, located in Fairfax, Virginia. Bloomie’s is an all-new smaller store concept offering a curated assortment of top contemporary and luxury brands, convenient services, tech-enabled stylists, new store design concepts, and a vibrant restaurant experience. |
| August 2021 | Macy’s announces a partnership with WHP Global to partner with Toys “R” Us. Rolling out in 2022, customers will be able to shop online and in more than 400 Macy’s stores nationwide. |
| July 2021 | Macy’s announces that Prabhakar Iyer is named Vice President, Treasury and Corporate Development, effective immediately. |
| July 2021 | Macy’s announces that Maly Bernstein is named Chief Executive Officer of Bluemercury, effective September 13, 2021. |
| July 2021 | Macy’s introduces a new private-label brand, And Now This. The line offers ready-to-wear and men’s categories for the fashion-forward, contemporary dresser, and features wearable elevated basics and sophisticated pieces, according to the company. |
| July 2021 | Macy’s raises more than $1.7 million through its “Pride + Joy” campaign for The Trevor Project, the world’s largest suicide prevention and crisis intervention organization for LGBTQ youth, becoming the organization’s largest 2021 Pride partner. |
| May 2021 | Macy’s launches a nationwide give-back campaign benefiting The Trevor Project, in support of at-risk LGBTQ youth. |
| May 2021 | Macy’s announces that Nina Parker, TV host and content creator, is launching a plus-size collection designed exclusively for Macy’s, created in partnership with Reunited Clothing. |
| May 2021 | Macy’s announces its vision for renewing its commitment to its flagship Herald Square store, including $235 million of private investment in the surrounding neighborhood. Macy’s plan will upgrade Herald Square’s transit infrastructure and public realm into a modern, pedestrian-friendly urban space with upgraded subway access, improved transit connections and ADA-accessible elevators. |
| April 2021 | Macy’s celebrates the 10th anniversary of The Workshop at Macy’s by launching an inaugural diverse and women-owned vendor development program featuring 50 participating brands. This incubator fosters up-and-coming businesses to scale both at Macy’s and within the retail industry at large. |
| April 2021 | Macy’s announces that Will Coss has joined the company as Vice President, Executive Producer of Branded Entertainment. In this role, Coss is responsible for all aspects of the planning and production of the brand’s annual events. |
| March 2021 | Macy’s celebrates Black creatives with the launch of Icons of Style, a collaboration with five Black designers, featuring exclusives across ready-to-wear, men’s, and shoes by Zerina Akers, Misa Hylton, Aminah Abdul Jillil, Allen Onyia and Ouigi Theodore. |
| March 2021 | Macy’s announces changes to its senior leadership team. John Harper, Chief Operations Officer, will depart the company effective August 1, 2021. Subsequently, the role of Chief Operations Officer will be eliminated. Laura Miller is appointed Chief Information Officer, effective March 15, 2021. Marla Beck, Bluemercury, Inc.’s Chief Executive Officer and Co-Founder, will leave the company in summer 2021. Macy’s has commenced a search for a new Chief Executive Officer. Chuck DiGiovanna, currently Vice President, Real Estate, has been appointed to lead Macy’s Real Estate function, succeeding Douglas W. Sesler, who is leaving the company. |
| February 2021 | Macy’s highlights Black creatives and Black-owned brands in honor of Black history and introduces a round-up campaign in stores and online in support of Black Girls CODE and UNCF. |
| January 2021 | Macy’s announces that Nata Dvir has been named Chief Merchandising Officer of the Macy’s brand, effective February 1, 2021. She currently serves as Macy’s Senior Vice President and General Business Manager for Beauty and Center Core merchandise. |
| 020 | Macy’s names Malek Robert “Bobby” Amirshahi Senior Vice President of Corporate Communications, effective December 7, 2020. |
| November 2020 | Macy’s upgrades its curbside pickup options to include a digital check-in experience and a “colleague app” to process curbside orders more quickly. |
| November 2020 | Macy’s announces that its same-day delivery partnership with service provider DoorDash has fully launched across all Macy’s and Bloomingdale’s stores. |
| November 2020 | Macy’s reports that more than 1 million new customers signed up to its Star Rewards loyalty program, Bronze tender-neutral tier, in the third quarter of 2020, taking the Bronze enrollment to 9 million members since it launched this option. |
| October 2020 | Macy’s appoints Adrian V. Mitchell Chief as Financial Officer, effective November 2, 2020. |
| October 2020 | Macy’s announces a partnership with Klarna, a “buy now, pay later” service provider. |
| September 2020 | Macy’s provides an update on its store expansion plans (which had been on pause due to Covid-19). The company plans to restart its market-based concept store. Over the next two years, it will open several smaller-format off-mall Macy’s and test a smaller-format off-mall Bloomingdale’s. In off-price, it will open several additional freestanding Backstage stores, continue the expansion of Bloomingdale’s The Outlet and test Backstage online. Every off-mall store will have full service for pickup and returns. |
| June 2020 | Macy’s announces restructuring to address sales impact from Covid-19; it eliminates approximately 3,900 corporate and management roles. |
| April 2020 | Macy’s Executive Vice President and Chief Financial Officer Paula Price announces she will be leaving Macy’s effective May 31, 2020. |
| April 2020 | Macy’s is delisted from S&P 500 as market capitalization declines to $1.5 billion, 69% from the period one year prior. |
| March 2020 | Macy’s closes its physical stores from March 18 through May 4, due to Covid-19. |
| March 2020 | Macy’s announces that it will furlough the majority of its workforce and keep the “absolute minimum workforce needed to maintain basic operation,” due to Covid-19. |
| February 2020 | Macy’s opens “Market by Macy’s” in Texas, an off-mall, smaller-format store with curated merchandise and local goods, focused on community-oriented events. |
| February 2020 | Macy’s introduces its Polaris Strategy at its Investor Day in New York City, highlighting that the strategy was developed over six months by business leaders across the organization. |
| February 2020 | Macy’s announces at its Investor Day that it will close approximately 125 of its least productive stores over the next three years, representing 25% of its fleet but less than 10% of sales volume; the stores are mainly located in C and D malls. |
| February 2020 | Macy’s launches the next phase of its Star Rewards loyalty program where customers earn rewards on every purchase regardless of how they pay. |
| September 2019 | Macy’s announces plans to sell its landmark building in downtown Seattle and close the store in February 2020. The closure marks the ending of a 90-year run of retail at that site. Macy’s took the building from The Bon Marché in 2003. |
| September 2019 | Macy’s announces the transition of Bluemercury founders; Macy’s states that Bluemercury’s COO Barry Beck has stepped down to pursue a new entrepreneurial venture, while Bluemercury’s CEO Marla Beck will stay during a transition period. |
| September 2019 | Bluemercury launches its first loyalty program, named BlueRewards |
| August 2019 | Macy’s begins a pilot with ThredUp, the world’s largest fashion resale marketplace, in 40 Macy’s stores across the country. |
| August 2019 | Bloomingdale’s announces plans to launch “My List at Bloomingdale’s,” an online subscription rental service for a flat monthly fee of $149, in September. |
| July 2019 | Macy’s unveils an outdoor-themed STORY shop in collaboration with Miracle-Grow and Dick’s Sporting Goods, which will focus on entertainment and recreational activities. |
| April 2019 | Macy’s launches STORY at Macy’s, bringing curated products and community events from more than 70 brands to 36 of Macy’s stores in 15 states. Macy’s has trained over 270 associates to staff the 36 STORY shops. |
| January 2019 | Bloomingdale’s unveils a 36,408-square-foot reimagined beauty department at its 59th Street flagship location in New York. |
| November 2018 | Macy’s announces that Facebook will bring products from nearly 100 digitally native businesses to Macy’s marketplace, The Market @ Macy’s. |
| October 2018 | Macy’s partners with 3D product visualization company Marxent to roll out virtual reality (VR) installations in 70 Macy’s stores nationwide. |
| October 2018 | Macy’s begins relaunching its stores as part of its Growth 50 program, a strategy that calls for a $200 million investment to renovate and modernize 50 of its best-located stores. |
| June 2018 | Macy’s announces the appointment of Naveen Krishna as Chief Technology Officer, effective June 16, 2018. |
| May 2018 | Macy’s acquires STORY, a retail concept store in New York City that operates as a marketplace, rotating the concept every four to six weeks. |
| April 2018 | Macy’s rolls out the “vendor direct program” on its e-commerce store that lets third-party sellers fulfill orders and ship to customers directly. |
| February 2018 | Macy’s launches its owned concept, The Market @ Macy’s, an in-store pop-up marketplace that features rotating collections of brands, and shop-in-shop locations with b8ta, helping digitally native brands break into brick-and-mortar retail. |
- Jeffrey Gennette—Chairman and CEO
- Adrian Mitchell—Chief Financial Officer
- Michael McGuire—Head of Investor Relations
- John Harper—Executive Vice President and COO
- Michelle Israel—Senior Vice President Off-Price
- Douglas Sesler—Senior Vice President Real Estate
- Nata Dvir—Chief Merchandising Officer
- Richard Lennox—Chief Customer Officer
- Laura Miller—Chief Information Officer
Source: Company reports