Macy's, Inc.
Business Model Analysis
How Macy's Makes Money
Annual Revenue: $22.6B
Macy's generates revenue primarily through Department Store Retail, with roughly $22.6B in annual revenue.
Core Growth Engine: Macy's Bold New Chapter strategy, announced in February 2024, has three parts: close roughly 150 underperforming Macy's stores through 2026, invest in a go-forward fleet led by the Reimagine 200 stores (more staffing, be...
Revenue Model & Pricing
Macy's is an omnichannel retailer that buys national brands (and develops private brands such as INC International Concepts, Charter Club and Hotel Collection) and sells them through stores and digital sites under three nameplates: Macy's, Bloomingdale's and Bluemercury. Merchandise net sales were $21.764B in FY2025. The remaining $857M of FY2025 revenue was 'other revenue', chiefly credit-card income from its partnership with Citi plus Macy's Media Network retail advertising. In Q2 2026, other revenue was $193M, including $156M of credit-card net revenue and $37M from Macy's Media Network.
Core Revenue Streams
Merchandise Net Sales
Not formally reportedSales of apparel, accessories, beauty, home, furniture, jewelry, watches, and other merchandise through stores and digital channels.
Women's Accessories, Shoes, Cosmetics and Fragrances
Not formally reportedLargest disclosed merchandise family in FY2025 net sales.
Women's Apparel
Not formally reportedWomen's apparel sold across Macy's and Bloomingdale's channels.
Men's and Kids'
Not formally reportedMen's and children's apparel and related categories.
Other Revenue
Not formally reportedOther revenue including credit-card and service-related revenue beyond merchandise net sales.
Growth Strategy
Macy's Bold New Chapter strategy, announced in February 2024, has three parts: close roughly 150 underperforming Macy's stores through 2026, invest in a go-forward fleet led by the Reimagine 200 stores (more staffing, better assortments and visuals), and accelerate Bloomingdale's and Bluemercury, including small-format Bloomie's and new Bluemercury stores. It also leans on digital, private-brand refreshes, the Citi credit-card program and Macy's Media Network.
How Macy's Makes Money: FAQ
How does Macy's, Inc. generate revenue and operating cash flow?
Macy's generates revenue primarily through retail merchandise sales of apparel, footwear, accessories, cosmetics, and home furnishings across brick-and-mortar department stores and digital e-commerce websites (Macys.com, Bloomingdales.com, Bluemercury.com), supplemented by credit card revenues and vendor advertising via Macy's Media Network.
How does the Macy's credit card program contribute to earnings?
Macy's partners with Citi on its proprietary and co-branded cards and shares in the program's profits. Credit-card net revenues were $156M in Q2 2026.
What is the role of Bloomingdale's and Bluemercury in Macy's luxury portfolio?
Bloomingdale's and Bluemercury serve as high-growth, high-margin luxury growth engines for Macy's, Inc. Bloomingdale's targets affluent designer fashion consumers with flagship stores and smaller 'Bloomie's' boutiques, while Bluemercury captures luxury skincare, cosmetics, and spa service spending.
What is Macy's small-format store strategy?
Macy's has opened smaller off-mall Macy's stores in open-air centers and smaller Bloomie's stores, offering curated assortments and order pickup at lower operating cost than mall anchors.
How does Macy's Media Network monetize digital advertising?
Launched in 2020, Macy's Media Network allows beauty, fashion, and home brand vendors to run targeted programmatic ads, sponsored product search placements, and video promotions across Macys.com and Bloomingdales.com, delivering high-margin retail media revenue.
What is Macy's digital marketplace model?
Macy's operates a curated digital third-party marketplace on Macys.com and Bloomingdales.com powered by Mirakl, enabling third-party fashion, home, and toy brands to sell products directly to Macy's shoppers while Macy's collects commissions without taking inventory risk.
How does Macy's manage omnichannel order fulfillment?
Macy's uses its physical store fleet as localized fulfillment nodes alongside giant regional direct-to-consumer mega-centers, offering Buy Online Pickup in Store (BOPIS), Curbside Pickup, and Ship-from-Store capabilities that reduce parcel transit times.
What is Macy's vendor concession and license model with luxury brands?
Macy's and Bloomingdale's partner with premier luxury brands (such as Louis Vuitton, Gucci, Chanel, and Ralph Lauren) under leased concession models, where luxury brands design and staff their own in-store shop-in-shops while paying percentage rent to Macy's.
How does Macy's make money?
Macy's operates the classic, highly capital-intensive "department store" model. They buy massive wholesale volumes of apparel, cosmetics, and home goods from brands (like Ralph Lauren and Estée Lauder) and sell them at a retail markup in their massive mall anchor stores. However, their highest-margin, absolute most critical revenue engine today is high-end beauty (Bluemercury) and massive private-label apparel brands.
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