Company name | Macy's Department Stores, Inc. |
---|---|
Company logo | |
Company type | Subsidiary |
Foundation | New York City, 1858 |
Location | New York City, United States |
Locations | 805 |
Slogan | The Magic of Macy's |
Industry | Retailing |
Products | Clothing, footwear, bedding, furniture, jewelry, cosmetics, housewares |
Parent | Macy's, Inc. |
Revenue | $24.892 billion (FY2009) |
Operating income | US$ 1.863 billion(FY2007) |
Net income | US$ 893 million (FY2007) |
Num employees | 167,000 (2009) |
Homepage | Macys.com |
Corporate site |
Macy's is a U.S. chain of mid-to-high range department stores. In addition to its New York flagship store, the company has designated additional regional flagships in several other major urban centers and operates over 800 stores in the United States. In addition, Macy's operates eSpot ZoomShops kiosks in over 300 store locations, selling consumer electronics.
The company produces the annual Macy's Thanksgiving Day Parade, a noted parade which has been held in New York City annually since 1924. The company also sponsors the city's annual Fourth of July fireworks display, beginning in 1976.
Despite being advertised as the largest in the world, it is no longer the biggest store in the world. Currently the biggest store in the world, according to the Guinness Book of World Records, is the flagship store of Shinsegae in Centum City, South Korea with an area of , almost twice that of Macy's.
The chain competes with Belk, The Bon-Ton Stores, Dillard's, Nordstrom, Neiman Marcus and Saks Fifth Avenue.
Macy's was founded by Rowland Hussey Macy, who between 1843 and 1855 opened four retail dry goods stores, including the original Macy's store in downtown Haverhill, Massachusetts, established in 1851 to serve the mill industry employees of the area. They all failed, but he learned from his mistakes. Macy moved to New York City in 1858 and established a new store named "R.H Macy Dry Goods" on Sixth Avenue between 13th and 14th Streets, which was far north of where other dry goods stores were at the time. On the company's first day of business on October 28, 1858 sales totaled US$11.08, equal to $}} today. From the very beginning, Macy's logo has included a star in one form or another, which comes from a tattoo that Macy got as a teenager when he worked on a Nantucket whaling ship.
As the business grew, Macy's expanded into neighboring buildings, opening more and more departments, and used publicity devices such as a store Santa Claus, themed exhibits, and illuminated window displays to draw in customers. It also offered a money back guarantee, although it only accepted cash into the 1950s. The store also produced its own made-to-measure clothing for both men and women, assembled in an on-site factory. The store later moved to 18th Street and Broadway, on the "Ladies' Mile", the elite shopping district of the time, where it remained for nearly forty years.
In 1875, Macy took on two partners, Robert M. Valentine (1850–1879), a nephew; and Abiel T. La Forge (1842–1878) of Wisconsin, who was the husband of a cousin. Macy died just two years later in 1877 from Bright's disease, The following year La Forge died, and Valentine died in 1879. Ownership of the company was passed down through the Macy family until 1895, when the company, now called "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.
In 1902, the flagship store moved uptown to Herald Square at 34th Street and Broadway, so far north of the other main dry goods emporia that it had to offer a steam wagonette to transport customers from 14th Street to 34th Street. Although the Herald Square store initially consisted of just one building, it expanded through new construction, eventually occupying almost the entire block bounded by Seventh Avenue on the west, Broadway on the east, 34th Street on the south and 35th Street on the north, with the exception of a small pre-existing building on the corner of 35th Street and Seventh Avenue and another on the corner of 34th Street and Broadway. This latter 5-story building was purchased by Robert H. Smith in 1900 for $375,000 – an incredible sum at the time – with the idea of getting in the way of Macy's becoming the largest store in the world: it is largely supposed that Smith, who was a neighbor of the Macy's store on 14th Street, was acting on behalf of Siegel-Cooper, which had built what they thought was the world's largest store on Sixth Avenue in 1896. Macy's ignored the tactic, and simply built around the building, which now carries Macy's "shopping bag" sign by lease arrangement.
The original Broadway store, designed by architects De Lemos & Cordes and built in 1901–02 by the Fuller Company. It has a Palladian facade, but has been updated in many details. Other additions to the west were added in 1924 and 1928, and the Seventh Avenue building in 1931, all designed by architect Robert D. Kohn, the newer buildings becoming increasingly Art Deco in style.
The building was added to the National Register of Historic Places as a National Historic Landmark in 1978. The store has several wooden escalators still in operation.
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 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 Corporation. 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 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 The May Department Stores Company. 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, Sam 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.
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 West 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.
On February 28, 2005, Federated agreed to terms of a deal to acquire The May Department Stores Company 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, , Foley's, Hecht's, The Jones Store, L. S. Ayres, Meier & Frank, Robinsons-May, and Strawbridge & Clothier chains, pending approval of the merger by federal regulators.
The conversion of the May brands was met with negative reaction in many of the regions surrounding those department stores because they were widely considered to be beloved local institutions. The strongest reactions occurred with the loss of Filene's, Marshall Field's, and Kaufmann's, which were all well known for their flagship downtown stores and local traditions. For example, Kaufmann's operated the Kaufmann's Celebrate the Season Parade which was traditionally broadcast live throughout the Commonwealth of Pennsylvania on television. Many customers publicly vowed to never again shop at the May stores that were converted and to permanently switch their loyalty to other major department store chains beyond Federated's control. Prominent film critic Roger Ebert voiced the grief of many Chicagoans at the loss of Field's when he wrote in his column on September 21, 2005:
A "Rally for Field's" is scheduled to take place at the Chicago State Street Macy's, at 12 noon on Saturday, September 10, 2011, under "The Great Clock" at State & Washington.
Where existing Federated stores were in close proximity to former May Company stores, some redundant stores were closed or sold off to other retailers. In a number of malls where a May Company store and a Macy's store had traditionally coexisted in the same mall, Federated occasionally instituted a pattern which Macy's West had successfully pioneered in the 1990s with earlier acquisitions (specifically, Broadway Stores and Liberty House's former U.S. mainland stores). This involved converting one store to a Macy's Men and Home store, which primarily carried men's apparel, luggage, and housewares, and the other to a Macy's Women store which primarily carried women's apparel, children's apparel, and cosmetics. Having two stores configured like this allows Macy's to offer broader inventories of all products without having to incur the expense of building a single flagship-size store. At some malls, like Fashion Show Mall, the dual-store system proved to be unsuccessful, so Macy's closed one of the stores and converted the other back to a general Macy's store.
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.
suburban Macy's store at Westfield Hawthorn in Vernon Hills, Illinois]]
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.
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.
In March 2009, Macy's opened a one-level, concept store in Gilbert, Arizona, a Phoenix suburb, that was designed to better fit open air lifestyle malls. Additional stores with the new format have opened in Fairview, Texas; Lee’s Summit, Missouri; and Nampa, Idaho. The stores are designed to be compact and meet current demands for more convenient shopping similar to Kohl’s and newer J. C. Penney stores. Lifestyle stores feature Starbucks Coffee Cafés with wireless web and fitting rooms designed to feel like lounges with sofas and Plasma TVs. Ceilings in the center areas are higher to be reminiscent of older department stores. The format was the culmination of 18 months of research to create stores for the "My Macy's" initiative that allows stores to be merchandised differently in markets across the country to meet local demands.
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 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. : 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 Kumler Co., William H. Block Co., Horne's, Famous-Barr, L. S. Ayres, The Jones Store, Kaufmann's, May Company Ohio, O'Neil's 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. In 2009 Macy's announced that they would downsize the former Famous-Barr flagship store in Downtown St. Louis from seven stories to three.
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:
In July 2003, then-New York State Attorney General Eliot Spitzer launched an investigation of the private policing system Macy's has used to deal with suspected shoplifters. The investigation was prompted by a civil rights lawsuit and an article in The New York Times, which reported on many of Macy's tactics, including private jails and interrogations. Spitzer's investigation found many of Macy's actions, from ethnic profiling to handcuffing detainees, to be unlawful. Macy's settled the civil rights complaint for US$600,000, claiming to have put the illegal tactics to an end while maintaining the security system itself.
The Macy's East downtown Boston store (formerly the Jordan Marsh flagship) touched off a local public relations firestorm with the June 6, 2006, removal of two mannequins and the Web address of the AIDS Action Committee from a window display promoting Boston's annual gay pride celebration. The removal was apparently in response to pressure from MassResistance, a local group opposed to same-sex marriage, whose members complained the mannequins were "homosexual". The removal of the mannequins was widely condemned by residents and officials, including Boston mayor Thomas Menino, who was quoted as saying:
Macy's response to the debacle was to publish an apology by the Macy's East chairman, Ron Klein, in In Newsweekly, a Boston-area weekly with a large gay readership. Klein's description of the incident as "an internal breakdown in communication," further stated it was regrettable some would doubt Macy's commitment to diversity as a result. The Web address was later restored—the mannequins, however never made a reappearance.
Macy's Boston was also a target of Animal Rights protesters, who held signs and handed out pamphlets throughout the 1990s regarding Macy's participation in the fur trade industry. Macy's West had at the time stopped carrying their line of fur coats and apparel, and although the demonstrations have since quieted, Macy's East continues to sell fur coats and apparel, as does a portion of Macy's South stores.
Category:Department stores of the United States Category:Clothing retailers of the United States Category:Landmarks in Manhattan Category:Companies established in 1858 Category:Shops in New York City Category:Companies based in Ohio
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