Macy’s, America’s leading department store retailer, has a rich history dating back to 1858 when it was started off as a small dry goods store by Rowland Hussey Macy's. At come that time, no one would have guessed that the store would grow on to become one of the largest department store retailers.
However, it was not all success in the initial period and after some failed retail ventures; R H Macy’s continued hard work and grit paid off with the launch of R.H. Macy & Co. Sales at the end of first year were almost $ 90,000. Over the years, Macy’s continued success saw the company open up regional stores and take over other retailers to increase its presence in the market.
Way back in November 25, 1929, another revolution was being made in American retail when Abraham & Straus of Brooklyn, Filene's of Boston, F&R Lazarus & Co. of Columbus, OH, and Bloomingdale's of New York combined together to form Federated Department Stores, Inc. (renamed Macy's, Inc. in June 2007). Each of these retailers had marked and prominent presence in the market with the backing of their rich history. The company grew to be one of the biggest retailers in the company and acquired other stores and retailers in the coming years. It had its own ups and down but in the 1990’s, Federated Department Stores acquired Macys to form Macy’s Inc. Macy's, Inc. is the owner of both Macy's and Bloomingdale's department stores.
With an annual 2010 sales of $25 billion, Macy’s currently serves its customers in over 800 stores throughout the country and specializes in retail clothing, fashion accessories such as jewellery, handbags and shoes along with household items such as furniture and kitchen items.
Macy’s is not just a simple retailer; from its traditional Macy’s Thanksgiving Day Parade and the 4th of July Fireworks to its Annual Flower Shows and the tree lightings and animated window displays at the time of Christmas, Macy’s has always been in the forefront in creating its own distinctive and unique identity.
Innovation at its forefront, Macy’s is very well known as bringing many ‘firsts’ in the retail industry. Macy introduced several revolutionary business practices in the industry; it initiated the one price system, in which an item was sold across the shops to every customer at one price. It also was the first company to quote prices of different products in the newspapers. Macy also made history when it assigned Margaret Getchell, the first female executive in the retail industry. It also was the first retail store in New York to hold the license to sell liquor.
With its corporate philosophy revolving around the customer, Macy’s has always recognized the importance of directing its strategies towards providing localized shopping experience to its customers.
The Corporate Financial objectives of Macy’s, Inc. are:
•To grow sales;
•To continue to increase the company’s proﬁtability levels (earnings before interest, taxes, depreciation and amortization) as a percent of sales; •To improve return on invested capital;
•To maximize total shareholder return.
Keeping in mind the above objectives, Macy’s has seen an increase in sales in the year 2010 by 4.6 % as compared to the previous year while its operating income in the year 2010 was 7.6% of its sales.
A SWOT analysis examines a company's internal Strengths and Weaknesses in relation to the external Opportunities and Threats it faces from its competitors and other environmental factors. In the following pages, these four forces effecting Macy’s will be briefly analysed. STRENGTHS
With the acquisitions of small retailers at all regional levels, Macy’s has strategically aligned and integrated Diversity in all aspects of its operations. For Macy’s, diversity has become the most integral and essential part of business. Macy’s cater to a much diversified market and this has made it very beneficial to its...