R. H. Macy & Co.
Type Private (Subsidiary of Macy's, Inc.)
Headquarters Cincinnati, Ohio, USA
Clothing, footwear, bedding, furniture, Products jewelry, beauty products, and housewares.
?US$ 26.32 billion (FY2007) Revenue
Operating ?US$ 1.863 billion(FY2007) income
?US$ 893 million (FY2007) Net income
Employees 182,000 (2008)
Parent Macy's, Inc.
Macy's (officially R.H. Macy's) is a chain of mid-to-high range American department stores. Its selection of merchandise can vary significantly from location to location, resulting in the exclusive availability of certain brands in only higher-end stores. Its flagship store in Herald Square, New York City was recognized as the world's largest department store from 1924 until 2009. The company has designated additional regional flagships in major urban centers and operates a total of 810 U.S. stores (as of September 2008).
The company produces the annual Macy's Thanksgiving Day Parade, a well known parade which has been held on the streets of New York City annually since 1924. The company also sponsors the city's annual Fourth of July fireworks display, which began in 1976. History
Macys store sign at Herald Square.
The Macy's flagship department store with the famous brownstone at 34th and Broadway.
Macy's viewed from the Empire State Building
Macy's was founded in 1858 by Rowland Hussey Macy. On the company's first day of business which was October 28, 1858 the sales totaled $11.06 (Approximately $287.37 in 2007 USD). Macy had established a dry goods store in downtown Haverhill, Massachusetts in 1851 that initially served the mill industry employees of the area. Macy moved to New York City and established a new store named "R. H. Macy & Company" on the corner of
14th Street and 6th Avenue, later expanding to 18th Street and Broadway, on the "Ladies' Mile", the 19th century elite shopping district, where it remained for nearly forty years. In 1875, Macy took on two partners: Robert M. Valentine; and Abiel T. La Forge, and Macy died just two years later in 1877 from Bright's disease.
In 1893, R. H. Macy & Co. was acquired by Isidor Straus and his brother, Nathan Straus, who had previously held a license to sell china and other goods in the Macy's store. Isidor Straus was later killed in the sinking of the RMS Titanic. In 1902, the flagship store moved uptown to Herald Square at 34th Street and Broadway. Although the Herald Square store initially consisted of just one building, it expanded through new construction, eventually occupying almost the entire block bounded by 7th Avenue on the west, Broadway on the east, 34th Street on the south and 35th Street on the north. Exceptions are the small, pre-existing building on the corner of 34th and Broadway, which carries Macy's famous shopping bag sign under an agreement allowing the Macy's sign, and small pre-existing building on the corner of 35th and 7th.
The original Broadway R. H. Macy and Company Store (building), was built in 1901–02 by
architects De Lemos & Cordes. It is sheathed in a Palladian façade, but has been updated in many details. Other additions to the west were added in 1924, 1928, and 1931, all designed by architect Robert D. Kohn. They are all in the Art Deco style. The building has been
designated a National Historic Landmark. It boasts one of the few wooden escalators still in operation.
The problem of the pre-existing building also presented itself when Macys built a store on Queens Boulevard in Elmhurst, Queens, New York. This resulted in an architecturally unique round department store on 90 percent of the lot, with a small privately owned house on the corner.
Macy's underwent a period of expansion during the
1920s and 1930s. The company went public in
1922 and began to open up branch stores around
New York and Long Island. Acquisitions were also
made outside of the New York City region.
Department stores in Toledo (LaSalle & Koch
1924), Atlanta (Davison-Paxon-Stokes 1929),
Newark (L. Bamberger & Co. 1929), San
Francisco (O'Connor Moffat & Company 1945),
and Kansas City (John Taylor Dry Goods Co. 1947)
were purchased during this time. O'Connor Moffat
was renamed Macy's San Francisco in 1947, later
Macy's Entrance - 34th Street, New York becoming Macy's California, and John Taylor was
renamed Macy's Missouri-Kansas in 1949. Stores
in Toledo retained the LaSalle's name until 1984, becoming part of Macy's Midwest. These stores were sold to Elder-Beermen in 1986.
Macy's New York began opening stores outside of its historic New York City–Long Island
trade area in 1983 with a location at Aventura Mall in Aventura, Florida (a suburb of Miami), followed by several locations in Plantation, Florida (now relocated from the Fashion Mall to the Broward Mall since the Burdine's acquisition), Houston, New Orleans, and Dallas.
Davison's in Atlanta was renamed Macy's Atlanta in early 1985 with the consolidation of an early incarnation of Macy's Midwest (former Taylor and LaSalle's stores in Kansas City and Toledo, respectively), but late in 1985, Macy's turned around and sold the former Midwest locations. Bamberger's, which had aggressively expanded throughout New Jersey, into the Greater Philadelphia Metropolitan area in the 1960s and 1970s as well as into Nanuet, New York(southern Rockland County), and into the Baltimore Metropolitan area in the early 1980s, was renamed Macy's New Jersey in 1986.
In 1986 Edward Finkelstein, Chairman & CEO of R. H. Macy & Co., Inc., led a leveraged buy-out of the company and subsequently engaged in a takeover battle for Federated Department Stores, Inc., in 1988 that he lost to Canada's Campeau Corp. As part of its settlement with Campeau, Macy's purchased Federated's California-based, fashion-oriented Bullock's and its high-end Bullocks Wilshire and I. Magnin divisions. It followed with a reorganization of its divisions into Macy's Northeast (former Macy's New York and Macy's New Jersey), Macy's South/Bullock's (Macy's Atlanta stores plus Macy's New York's operations in Texas, Florida and Louisiana), and Macy's California, the latter including a semi-autonomous I. Magnin/Bullocks Wilshire organization. The Bullocks Wilshire stores were renamed I. Magnin in 1989.
Subsequently, R. H. Macy & Co., Inc., filed for bankruptcy on January 27, 1992, after which point its banks brought in a new management team, which shut several underperforming stores, jettisoned two-thirds of the luxury I. Magnin chain, and reduced Macy's to two divisions; Macy's East and Macy's West.
Federated Department Stores merger
The Macy's West flagship store in San Francisco.
At the start of 1994, Federated began pursuing a merger with Macy's. After a long and difficult courtship, R. H. Macy & Co. finally merged with Federated Department Stores on December 19, 1994. Following the merger the reorganized Macy’s moved its headquarters to Cincinnati, Ohio under the name Federated Department Stores. Federated promptly shut down the remainder of the I. Magnin chain, converting several to Macy's or Bullock's and selling four in Carmel, Beverly Hills, San Diego and Phoenix to Saks Fifth Avenue. Federated also merged its Abraham & Straus/Jordan Marsh division with the new "Macy's East" organization based in New York, renaming the Abraham & Straus stores in
metropolitan New York with the Macy's nameplate in 1995, and then erasing the Jordan Marsh moniker in New England in early 1996.
Federated followed that by leading a bid in mid-1995 to acquire the bankrupt Woodward & Lothrop/John Wanamaker organization in the mid-Atlantic region, a bid it lost to rival group led by long-time rival and future acquisition target May Department Stores. Instead Federated soon agreed to purchase Broadway Stores, Inc. (owner of The Broadway, Emporium and Weinstock's stores in California, Arizona, Nevada and New Mexico), from its majority shareholder, Samuel Zell, thereby gaining a leading position in Southern California and a dominant one in the Northern California marketplace. In early 1996 Federated dissolved Broadway Stores, incorporating the majority of its locations into Macy's West, rebadging them as Macy's and using the opportunity to retire the Bullock's name. Several of the redundant Broadway locations were used to establish Bloomingdale's on the West Coast, while many other were sold to Sears.
The Macy's in downtown Cincinnati.
In 2001 Federated dissolved its Stern's division in the New York metropolitan area, with the bulk of the stores being absorbed into Macy's East. Additionally, in July 2001 it acquired the Liberty House chain with department and specialty stores in Hawaii and Guam, consolidating it with Macy's West.
In early 2003 Federated closed the majority of its historic Davison's franchise in Atlanta (operating as Macy's since 1985), rebranding its other Atlanta division Rich's with the unwieldy name, Rich's–Macy's. The downtown location—formerly the Davison's flagship
store at 180 Peachtree Street -- was shuttered at this time as well. The original Macy's Lenox Square and Perimeter Mall locations were extensively remodeled and opened in October 2003 as the first Bloomingdale's stores in Atlanta. The company rapidly followed suit in May 2003 with similar rebranding announcements for its other nameplates, Burdines in Florida, Goldsmith's in Memphis, Lazarus in the lower Midwest, and The Bon Marché in the Pacific Northwest.
On March 6, 2005, the Bon-Macy's, Burdines-Macy's, Goldsmith's-Macy's, Lazarus-Macy's, and Rich's-Macy's stores were renamed as simply "Macy's", the first two as the new Macy's Northwest and Macy's Florida divisions respectively and the later three as part of the Macy's Central division. As of July 2005, Macy's had 424 stores throughout the U.S.
After a series of corporate name changes, first simply Federated Department Stores, then Macy’s-Federated Department Stores the Cincinnati based company simply became Macy’s Department Stores.
Merger with May Department Stores
The Macy's store in Downtown Pittsburgh with a Kaufmann's sign in front. It was converted from the Kaufmann's chain's flagship store to a Macy's in the summer of 2006. On February 28, 2005, Federated agreed to terms of a deal to acquire May Department Stores for $11 billion in stock, creating the nation's second largest department store chain with $30 billion in annual sales and more than 1,000 stores.
On July 28, 2005, Federated announced, based on the success of converting its own regional brands to the Macy's name, its plans to similarly convert 330 regional department stores owned by the May Company (as May Department Stores was generally referred to) to the Macy's nameplate. This included May's Marshall Field's (purchased by the May Company from Target just 8 months prior to Federated's purchase of the May Company), Kaufmann's, Famous-Barr, Filene's, Foley's, Hecht's, The Jones Store, L. S. Ayres, Meier & Frank, Robinsons-May, and Strawbridge's chains, pending approval of the merger by federal regulators. This was met with negative reaction in many of the local areas of these department stores because they were considered local institutions in those regions. The regions with the most negative reactions were the Marshall Field's of Chicago and the Kaufmann's of Pittsburgh, they both were well known for their famous clocks and flagship downtown stores. Kaufmann's also ran the locally ran Kaufmann's Celebrate the Season Parade which was broadcast live around the state. The home of Filene's and Sons in Boston, MA and suburb areas where mad. There was a backlash at (Macys) The Federated Department Store from loyal customers of The May Company (Filene's). Many of the Filene's customers either vowed never to stop at Macy's or to go the competitor instead. Where existing Macy's stores were in close proximity to former May Company stores, some redundant stores would be closed or sold off to other retailers.
On January 12, 2006, Federated announced its plans to divest May Company's Lord & Taylor division by the end of 2006 after concluding that chain did not fit with their strategic focus for building the Macy's and Bloomingdale's national brands. On June 22, 2006, Macy's announced that NDRC Equity Partners, LLC would purchase Lord & Taylor for US$1.2 billion, and completed the sale in October 2006.
Macy's becomes a national brand
Exterior of a typical ex-Marshall Fields suburban Macy's store at Westfield Hawthorn in Vernon Hills, IL)
On February 21, 2006, Macy's appointed a new chief marketing officer, Anne MacDonald, to oversee the transformation of Macy's into a "national department store." By September 9, 2006, and after renaming the former May Company locations, Macy's operated approximately 850 stores in the United States. To promote its largest and most recent expansion, Macy's used a version of the Martha and the Vandellas hit song, "Dancing in the Street", in its advertising. Also, the company took props from its annual Thanksgiving Day parade to various re-labeled stores throughout the nation, in what the company marketed as its "Parade on Parade."
Macy's significantly increased its use of television advertising and product placement in 2006 and 2007, using branding spots that featured the new Macy's star logo. During the February 11, 2007, episode of the popular ABC television series Desperate Housewives, a Macy's
(under the fictional name McMay's) location in the fictional city of Fairview was featured, a rare instance of product placement promoting a department store chain in a scripted series. Nearly two years earlier, one of the first national commercials for Macy's had aired during Desperate Housewives, shortly after the conversion of Rich's, Lazarus, Goldsmith's, The Bon Marché and Burdines.
The Macy's at Greenspoint Mall in Houston, Texas was a Foley's until 2006 On February 27, 2007, Federated Department Stores announced plans to change its corporate name from Federated Department Stores, Inc., to Macy's Group, Inc. By March 28, the
company further announced plans to convert its stock ticker symbol from "FD" to "M", and revised its earlier proposed name change, instead opting to change to Macy's, Inc. The
change in corporate names was approved by shareholders on May 18, 2007, and took effect on June 1, 2007. The company will continue to operate stores under both the Macy's and Bloomingdale's nameplates.
The red Macy's star has been around since the 1850s when Rowland Macy opened his first store in New York. Mr. Macy was a sea captain who became lost at sea and thought he was lost until a star appeared in the skies above him. He used that star to steer, and it guided him back to land. Once there, he had a star tattooed on his arm to keep that memory alive. He adopted the red star as a symbol for Macy's and it has been around ever since.
Macy's Turns 150
In 2008, Macy's celebrated its 150th birthday. The store launched a commercial including old Macy's commercials, and actors and actresses mentioning Macy's on shows. It also featured clips of past Macy's Thanksgiving Day Parades. The commercial was used to promote Macy's and a way of saying thank you for making Macy's part of your life for 150 years. The commercial aired around when the annual Primetime Emmy Awards aired live on ABC on September 2008. The commercial has aired on different channels also throughout the whole September, October, and November months.
Prior to the merger of Federated and May, Macy's had been organized into five divisions. Incorporation of properties from six former regional May Company divisions began in February 2006, when existing Macy's stores and properties yet to be converted were then organized into seven divisions with store locations in 45 states, Washington, D.C., Puerto Rico and Guam. As of June 2009, the only states without a Macy's store were Alaska, Arkansas, Iowa, Mississippi and Nebraska.
On February 6, 2008, Macy's Inc. announced consolidation of its Macy's store locations into four primary geographic divisions. From that date, three of the divisions each had approximately 250 locations each as a result of the reorganization, while its Florida-based division remained unaffected, as did its Bloomingdale's division.
; Macy's East, was headquartered in New York City, with locations ranging from the
eastern to north-central United States. Prior to the consolidation of May Company
properties into the division in February 2006, the division contained 216 stores/29,100
employees in Connecticut, Delaware, Maine, Maryland, Massachusetts, New
Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, portions
of Virginia, and the city of Washington, D.C.. In addition to Macy's, this division
formerly operated Filene's stores in New England, the majority of Kaufmann's stores
in upstate New York, and Strawbridge's and Hecht's stores in the mid-Atlantic region.
After announced divestitures/store closures were completed by late 2006, this division
contained 185 locations until consolidation with Macy's North.
Macy's North, headquartered in Minneapolis from February 2006 until February 2008,
was consolidated into Macy's East. Prior to its consolidation, the division included 65
stores in Illinois, Indiana, Michigan, Minnesota, North Dakota, Ohio, South Dakota,
and Wisconsin. Formerly, most locations had operated as Marshall Field's, which in
turn included many former Dayton's and Hudson's locations. Additionally, the former
L. S. Ayres location in Merrillville, Indiana, and Macy's at Mall of America in
Bloomington, Minnesota, were included in the Macy's North division. The division's
successor, in effect, was a corporate region within Macy's East, with regional offices
moved from Minneapolis to Chicago.
; Macy's Central, which was headquartered in Atlanta, Georgia, was the second
incarnation of the division name within what is currently Macy's Inc., with stores
throughout the midwestern and southeastern United States. The current Macy's
Central consolidates the following locations:
Macy's South, which was also headquartered in Atlanta, operated from February 2006 until February 2008. The Federated/Macy's Inc. division itself was a consolidation of May Company properties with the first incarnation of Macy's Central — a renaming
of Federated's RLG division, which had included Rich's, Lazarus, and Goldsmith's. As of March 2007, the division contained 136 stores/22,500 employees in Alabama, Georgia, Kentucky, Louisiana, North Carolina, Oklahoma, South Carolina, Tennessee, Texas & Virginia. Macy's South as operated by Federated/Macy's Inc. was created by consolidating former Rich's and Goldsmith's locations with several stores from the Foley's chain. (Lazarus stores were transferred to Macy's Midwest.) From 1988 to 1992, R. H. Macy & Co., Inc.'s Macy's South division was also headquartered in Atlanta, Georgia, with stores in Alabama, Georgia, Virginia, South Carolina, Florida, Louisiana and Texas operating as Macy's, while stores in California, Arizona and Nevada operated as Bullock's. The former South division was formed following Macy's acquisition of Bullock's, incorporating Macy's Atlanta (the former Davison's stores renamed in 1985) with the Florida, Louisiana and Texas locations of Macy's New York and Bullock's. It was dissolved in 1992 and its stores consolidated into Macy's East and Macy's West.
Before and After shots of the former Lazarus store located at Eastland Mall in Columbus, Ohio. (Store was relocated to the former Kaufmann's building at Eastland in April 2006). The former Lazarus stores became part of Macy's Midwest.
Macy's Midwest, headquartered in St. Louis, Missouri, from February 2006 until February 2008, was consolidated with Macy's South to form the more recent Macy's Central division. Prior to its consolidation, this Macy's Midwest division included 95 stores throughout the midwestern United States. There was a prior division of R. H. Macy & Co., Inc. named Macy's Midwest that was headquartered in Kansas City formed from a consolidation of two Macy's divisions, LaSalle's and Macy's Missouri-Kansas, in 1981. It was merged with Davison's to form Macy's Atlanta on February 1, 1985. Its former LaSalle's stores were sold to Elder-Beerman later that year and its former Kansas and Missouri stores were sold to Dillard's in 1986. Macy's Midwest incorporated several historic department store franchises owned by the former Federated Department Stores, Inc. and by May Company. The franchises represented by Macy's Midwest include The F&R Lazarus & Co., Shillito's, Rike's, William H. Block Co., Joseph Horne Co., Famous-Barr, L. S. Ayres, The Jones Store, Kaufmann's, May Company Ohio, O'Neils and Strouss. St. Louis will remain as a regional headquarters location for a corporate region within Macy's Central. Another corporate regional headquarters within the division will be based in Cincinnati.
; Macy's West, was headquartered in San Francisco, California, with locations throughout the western United States, building on the foundation of store locations that first operated as O'Connor, Moffat & Company in San Francisco's Union Square and other sites. Prior to the February 2006 inclusion of May Company properties, the division included 232 stores/31,100 employees throughout Arizona, California, Colorado, Hawaii, Nevada, New Mexico, Texas and Guam. In addition to Macy's stores, the division operated former Foley's locations in Colorado, New Mexico, and
El Paso, Texas, as well as Robinson's-May stores. After announced divestitures/store
closures were completed by late 2006, this division operated approximately 190 stores,
until consolidation with Macy's Northwest.
Macy's Northwest, headquartered in Seattle from February 2006 until February 2008,
was consolidated into Macy's West. Many of the locations were formerly locations of
The Bon Marché, and the division included 71 stores/7,200 employees prior to the
February 2006 inclusion of May Company properties. Store locations in the division
were located throughout Idaho, Montana, Oregon, Utah, Washington, and Wyoming.
In addition to former Bon Marché stores, the division added stores formerly operating
as Meier & Frank, which in turn had included former ZCMI locations. Seattle will
remain as a regional headquarters location for a corporate region within Macy's West.
; Macy's Florida, which was headquartered in Miami, Florida, included 61 stores/9,800
employees in Florida and Puerto Rico. The majority of the stores were formerly
Burdines; the San Juan, Puerto Rico, store was transferred from Macy's East in
In conjunction with these geographic divisions, the New York-based Macy's Home Store division was responsible for buying, planning and marketing home-related merchandise sold in all Macy's stores.
All store divisions nationwide were also served by two administrative divisions, prior to February 2009:
; Macy's Corporate Marketing headquartered in New York, responsible for overall
activity on initiatives implemented to support the company's focus on Marketing.
; Macy's Merchandising Group, headquartered in New York, responsible for
conceptualizing, designing, sourcing, and marketing private label and private branded
goods sold at Macy's and managing core vendor relationships in the domestic branded
On February 2, 2009, Macy's announced that their four divisions will be consolidated into one division based in New York City. The restructuring will result in job cuts of 7,000 positions, or 4% of its workforce, although also creating 1,200 new positions.
The constantly enlarging textile industry often negatively contributes to the environment. Because Macy’s is a large clothing retailer, their production often hurts the environment. A few of the effects of the consistently increasing textile industry are water deficit, pollution,