In 1858, Rowland Hussey at the age of 36 opened a dry goods store on NY Ave with $11.06 in first day sales. Within a year, the total sales increased by 770,000 percent. By 1924, the location became the largest department store in the world, transformed to sell apparel and other items. As time passed, Mr. Hussey expanded the store and housed several department stores to include Abraham & Stratus, F&R Lazarus, Shillito’s and Filene’s of Boston and Bloomingdale; thus forming the Federated Department Stores, Inc., Federated for short. The shareholders voted in 2007 to change the name to Macy’s Inc. First years sales totaled $112 million for the Federated. In 1939 the organization continued to expand by offering credit to customer as a form of payment. During that same year Fred Lazarus Jr. convinced President Franklin Roosevelt to move the Thanksgiving holiday to the 4th Thursday of the month to stimulate economic growth.
In 1964, annual sales net at $1.215 billion. The major growth however did not deter the organization from hitting financial troubles. Campeau Corporation acquired Federated in 1988 and filed for bankruptcy in 1990 with more than $8 billion in debt. In 1992, Macy’s Inc. filed for protection under Chapter 11 and was granted it. Macy’s Inc. emerged from bankruptcy and had annual sales of approximately $7 billion. By 1998, major agencies rated the debt as investment grade and quarterly dividends were initiated in 2003. Currently, Macy’s Inc. has invested $400 million to renovate Macy’s herald Square flagship, making it the largest capital investment in Macy’s Inc. history.
Macy’s Inc. organizational structure is centralized. The decision-making authority is concentrated at the top, and only a few people are responsible for making decisions and creating the organization’s policies (see Figure 1 for Macy’s Inc. Executive Officers). The most apparent advantages to this structure is Macy’s Inc. ability to closely control operations, provide a uniformed set of policies, practices and procedures throughout the organization. It also allows for better use of the experts knowledge.
|Name |Age |Position with the Company | |Terry J. Lundgren |60 |Chairman of the Board; President and Chief Executive Officer; Director | |Timothy M. Adams |58 |Chief Private Brand Officer | |Thomas L. Cole |63 |Chief Administrative Officer | |Jeffrey Gennette |50 |Chief Merchandising Officer | |Julie Greiner |58 |Chief Merchandise Planning Officer | |Karen M. Hoguet |55 |Chief Financial Officer | |Jeff Kantor |53 |Chairman of macys.com | |Martine Reardon |49 |Chief Marketing Officer | |Peter Sachse |54 |Chief Stores Officer | |Joel A. Belsky |58 |Executive Vice President and Controller | |Dennis J. Broderick |63 |Executive Vice President, general Counsel and Secretary |
Macy’s Inc. operates in the retail industry for department stores. The product line is extensive falling with one of the following...
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