Macy's, Inc.
Department Store RetailFounded 1858- Updated July 2025
Reviewed by Swet Parvadiya
Last reviewed: July 2025
CorpDigest
Macy's, Inc.
Company History
Founded 1858 in New York, New York
Last reviewed: 2025-07-15 · By Swet Parvadiya
On October 28, 1858, Rowland Hussey Macy opened a dry goods store on Sixth Avenue in New York City and rang up $11.06 in total sales. He had failed at retail four times before, including stores in Massachusetts and California. The New York location would be different. By the end of that first year, daily sales had climbed to $1,000.
The Herald Square flagship at 34th Street opened in 1902. Over the following decades the building expanded to become, briefly, the largest store in the world by retail floor space. The Macy's Thanksgiving Day Parade launched in 1924 — not as marketing, but because company employees wanted to celebrate American abundance by marching from the Upper West Side to Herald Square with animals borrowed from the Central Park Zoo.
The modern Macy's corporate structure arrived through decades of consolidation. The 1994 merger with Federated Department Stores brought together two of the largest mall anchor operators in the country. The 2005 acquisition of The May Department Stores Company added over 400 more locations and regional banners including Marshall Field's, Filene's, and Foley's — all of which were eventually converted to the Macy's nameplate, a decision that generated significant consumer backlash in markets with strong local banner identities.
Bluemercury, the luxury skincare boutique chain, joined the portfolio in 2015 as Macy's first acquisition specifically targeting the standalone specialty retail format — a quiet signal, eight years before the 150-store closure announcement, that the company understood its format had limits.
Rowland Hussey Macy was the founder of R.H. Macy and Company, having opened a small dry goods store in the Sixth Avenue neighborhood of Manhattan, New York City, in 1858. Macy, a Quaker whaler from Nantucket, was guided by the Quaker principle of 'strictly correct' business practices, and he introduced revolutionary retail concepts for the era, including fixed pricing with no haggling, daily cash-only transactions, and a money-back guarantee. The store's success was meteoric, and by 1875, Macy had consolidated the entire operation into a single, massive building at the corner of Broadway and 14th Street, creating one of the first true department stores in the United States. Following Macy's death in 1877, the store was purchased by his employees, the Straus brothers, who expanded the business aggressively, moving the flagship store to its current iconic location at Herald Square in 1902. Macy's vision of prioritizing transparency, quality, and customer trust created a brand equity that has endured for over 166 years, establishing the foundation for the national dominance that defines Macy's, Inc. today.
Rowland Hussey Macy opens a small dry goods store in Manhattan, introducing fixed pricing and a money-back guarantee, quickly establishing a reputation for quality and integrity.
The Straus brothers move the flagship store to its current iconic location at 34th Street and Broadway, creating a massive, city-block-long emporium that became the largest store in the world.
The company hosts the first Macy's Thanksgiving Day Parade in New York City, which quickly becomes a national tradition and cements the Macy's brand in the American consciousness.
Following a 1992 Chapter 11 bankruptcy, R.H. Macy & Co. is acquired by Federated Department Stores, creating the largest department store operator in the United States.
Federated acquires The May Department Stores Company for $11.5 billion, adding iconic regional banners like Marshall Field's and Filene's to the portfolio, establishing national dominance.
The company completes the conversion of all regional banners, including Marshall Field's and Filene's, to the Macy's nameplate, creating a unified national brand identity.
Macy's announces the most aggressive real estate contraction in its history, closing 150 underperforming stores to concentrate on the top 75 U.S. markets, targeting $1 billion in annualized savings by 2026.
Federated Department Stores acquired The May Department Stores Company to achieve national scale, eliminate a major competitor, and acquire iconic regional banners like Marshall Field's, Filene's, and Kaufmann's, creating the largest department store operator in the United States.
Federated Department Stores acquired the bankrupt R.H. Macy & Co. out of Chapter 11, consolidating the two largest department store operators in the United States and acquiring the iconic Macy's brand name and its highly profitable Herald Square flagship.
Macy's acquired Bluemercury, a rapidly growing off-mall beauty retailer, to accelerate its presence in the high-margin prestige beauty category and gain access to a specialized, customer-centric retail format that complemented the traditional department store model.
Macy's, Inc. traces origins to 1858 New York City founding by Rowland Hussey Macy (1822-1877) — establishing substantial American department store operations that subsequently became one of largest US department store operators through 166+ years of continued operations across various ownership periods. The 1858 founding context: substantial Rowland Hussey Macy substantial New England merchant background including various failed retail ventures supporting various continued considerations, comprehensive substantial October 1858 substantial Rowland Hussey Macy opening of R.H. Macy & Co. at substantial 14th Street and Sixth Avenue New York City supporting substantial early dry goods operations, comprehensive substantial substantial various continued operational development. The substantial 19th-20th century expansion: substantial 1875 substantial Lazarus family business interest establishment supporting substantial subsequent Federated Department Stores operations, comprehensive substantial 1902 substantial Macy's Herald Square flagship store opening (substantial 34th Street and Broadway New York City location representing substantial largest department store in world for many decades) supporting substantial flagship operations, comprehensive substantial substantial multi-decade operational development across various subsequent decades. The substantial corporate consolidation: substantial 1929 substantial Federated Department Stores formation through merger of substantial various Lazarus family operated department stores supporting substantial multi-decade consolidation, comprehensive substantial 1994 substantial Federated Department Stores acquisition of R.H. Macy & Co. for $4.1 billion combining substantial Macy's into Federated portfolio, comprehensive substantial 2005 substantial Federated Department Stores May Department Stores acquisition for $17 billion adding substantial Lord & Taylor, Filene's, Marshall Field's, Robinsons-May, Famous-Barr, Strawbridge & Clothier, and various other department store brands, comprehensive substantial 2007 substantial Federated Department Stores rebranding to Macy's, Inc. supporting substantial brand consolidation. The continued operations generate approximately $23 billion annual revenue.
Macy's, Inc. has navigated substantial department store industry challenges across recent decades through comprehensive operational restructuring, brand consolidation, store closures, and various other strategic considerations. The substantial department store industry challenges: substantial substantial e-commerce continued growth affecting various continued department store considerations, comprehensive substantial substantial off-price retailer growth from substantial TJX Companies, Ross Stores, Burlington Stores affecting various continued considerations, comprehensive substantial substantial mall traffic decline affecting various continued considerations particularly substantial various Macy's mall locations, comprehensive substantial substantial 2020 COVID-19 pandemic substantial substantial department store disruption affecting various continued considerations, comprehensive substantial substantial demographic considerations affecting various continued considerations. The Macy's operational responses: comprehensive substantial substantial 2007 Federated Department Stores rebranding to Macy's, Inc. supporting substantial brand consolidation, comprehensive substantial substantial systematic store closures across multiple years supporting various continued operational considerations, comprehensive substantial substantial Polaris Strategy (2020+) supporting substantial digital transformation and operational excellence including substantial new format Macy's Backstage outlet operations expansion, comprehensive substantial substantial Bloomingdale's substantial upscale operations continued growth, comprehensive substantial substantial Bluemercury beauty retail operations continued growth, comprehensive substantial substantial 2024 substantial Bold New Chapter strategy launch under Tony Spring CEO supporting substantial substantial transformation including substantial 150 Macy's store closures over three years supporting substantial substantial portfolio optimization. The continued strategic execution: comprehensive substantial substantial Macy's brand operations supporting various continued considerations, comprehensive substantial substantial Bloomingdale's and Bluemercury brands supporting various continued considerations, comprehensive substantial substantial various continued strategic considerations. The continued strategic execution requires sustained operational performance through challenging department store industry dynamics.
Macy's, Inc. has substantially positioned through 2024 Bold New Chapter strategy launch under substantial Tony Spring CEO (since February 2024) supporting substantial substantial transformation including substantial various strategic initiatives. The Bold New Chapter strategy context: substantial substantial February 2024 substantial Tony Spring CEO appointment succeeding Jeff Gennette supporting substantial new strategic direction, comprehensive substantial substantial February 2024 substantial Bold New Chapter strategy launch supporting substantial substantial transformation, comprehensive substantial substantial various continued considerations. The Bold New Chapter strategy initiatives: substantial substantial 150 Macy's store closures over three years (2024-2026) supporting substantial substantial portfolio optimization, comprehensive substantial substantial focus on approximately 350 'go-forward' Macy's locations supporting substantial substantial operational investment in remaining locations, comprehensive substantial substantial Macy's Small Format store expansion supporting substantial substantial new format operations across various continued markets, comprehensive substantial substantial Bloomingdale's substantial continued upscale operations, comprehensive substantial substantial Bluemercury beauty retail substantial continued expansion, comprehensive substantial substantial substantial various other strategic initiatives. The activist investor considerations: substantial substantial 2023-2024 substantial activist investor pressure including substantial Arkhouse Management and Brigade Capital Management substantial $6.6 billion buyout proposal subsequently withdrawn following substantial Macy's rejection, comprehensive substantial substantial various continued strategic considerations. The strategic implications: substantial substantial portfolio optimization supporting various continued considerations, comprehensive substantial substantial operational refocus supporting various continued considerations, comprehensive substantial substantial various continued strategic positioning. The continued strategic execution under Tony Spring leadership supports continued institutional positioning across US department store industry.
Macy's, Inc. has substantially developed Bloomingdale's substantial upscale department store operations supporting various continued considerations as substantial second Macy's brand beyond pure Macy's mid-tier department store focus. The Bloomingdale's operations: substantial substantial Bloomingdale's substantial upscale department store operations across approximately 33 full-line stores plus substantial Bloomingdale's Outlet locations supporting various continued considerations, comprehensive substantial substantial Bloomingdale's flagship locations including substantial Bloomingdale's 59th Street New York City flagship supporting substantial flagship operations, comprehensive substantial substantial various continued Bloomingdale's operations supporting various continued considerations. The strategic value: substantial substantial Bloomingdale's substantial upscale positioning supporting various continued considerations versus pure Macy's mid-tier positioning, comprehensive substantial substantial established Bloomingdale's brand equity supporting various continued considerations, comprehensive substantial substantial Bloomingdale's continued growth supporting various continued considerations particularly substantial substantial recent years, comprehensive substantial substantial various other strategic benefits. The competitive comparison: substantial Nordstrom (substantial upscale department store operator with approximately $14-15 billion annual revenue though with substantial late 2024 potential family-led private equity buyout for approximately $6 billion), comprehensive substantial substantial Saks Fifth Avenue (substantial luxury department store operator), comprehensive substantial substantial Neiman Marcus (substantial luxury department store operator subsequently acquired by Saks Fifth Avenue parent HBC for approximately $2.65 billion July 2024 creating substantial Saks Global), comprehensive substantial various other upscale department store competitors. The continued Bloomingdale's operations support continued institutional positioning beyond pure Macy's mid-tier focus.