Macy's, Inc. vs Nordstrom, Inc.: Strategic Comparison

This in-depth comparison examines Macy's, Inc. and Nordstrom, Inc. across revenue, market value, business model, competitive positioning, and long-term growth strategy. Whether you are researching Macy's, Inc. on its own, evaluating Nordstrom, Inc., or weighing the two companies side by side, the breakdown below highlights where each company leads and where the gap between Macy's, Inc. and Nordstrom, Inc. is widest.

On the headline numbers, annual revenue is $22.6B (FY2025) for Macy's, Inc. and $15.0B (FY2024) for Nordstrom, Inc., while their respective market capitalizations stand at $5.8B and N/A. Both Macy's, Inc. and Nordstrom, Inc. are headquartered in United States. Their local markets and applicable rules may still differ.

Macy's, Inc.: Macy's, Inc. is the largest U.S. department store operator by sales, headquartered at Herald Square in New York City. It runs Macy's, the mid-market department store chain; Bloomingdale's, its upscale fashion banner; and Bluemercury, a prestige beauty and spa chain. The company sponsors the Macy's Thanksgiving Day Parade (since 1924) and the Macy's 4th of July Fireworks. Its main challenge is that many Macy's stores anchor enclosed malls where traffic has fallen, while off-price chains and online retailers compete for the same shoppers. The company is headquartered in New York City, New York.

Nordstrom, Inc.: Nordstrom, Inc. is a Seattle-based fashion retailer selling apparel, shoes, beauty, and accessories through full-line Nordstrom stores, Nordstrom Rack off-price stores, Nordstrom Local service hubs, Nordstrom.com, and NordstromRack.com in the United States. Founded in 1901, it is run by the fourth generation of the Nordstrom family: co-CEOs Erik and Pete Nordstrom and chief merchandising officer Jamie Nordstrom. The family and El Puerto de Liverpool took the company private in May 2025 in a deal valued at about $6.25B. The company is headquartered in Seattle, Washington. Nordstrom was founded in 1901 in Seattle, Washington, by Swedish immigrant John W. Nordstrom and shoemaker Carl Wallin as Wallin & Nordstrom, growing from a downtown shoe store into an iconic luxury department store chain.

Macy's, Inc. and Nordstrom, Inc. pursue distinct approaches to generating revenue, and understanding how each company operates is the foundation of any fair comparison between Macy's, Inc. and Nordstrom, Inc..

Macy's, Inc. business model: 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.

Nordstrom, Inc. business model: Nordstrom makes money by selling apparel, shoes, beauty, accessories, and home goods through two banners. The Nordstrom banner covers full-line department stores, Nordstrom Local service hubs, and Nordstrom.com, selling designer and premium brands at full price with services such as alterations and styling. Nordstrom Rack covers off-price stores and NordstromRack.com, selling mostly merchandise bought specifically for Rack at lower prices. Nordstrom also earns revenue from its credit card program with TD Bank and from its Nordy Club loyalty ecosystem. In FY2024, net sales were $14.557B and total revenues, including credit card revenue, were $15.016B.

The durability of a company's moat often decides long-term winners. Here is how the competitive advantages of Macy's, Inc. stack up against those of Nordstrom, Inc..

Macy's, Inc. competitive advantage: Macy's main advantages are national brand recognition, deep vendor relationships with major apparel and beauty brands, a proprietary credit-card and loyalty base, cultural assets such as the Thanksgiving Day Parade and Herald Square flagship, and an upscale banner in Bloomingdale's. Bloomingdale's comparable sales rose 11.3% in Q2 2026, its second straight quarter of double-digit growth, and Bluemercury gives the group a specialty prestige-beauty format.

Nordstrom, Inc. competitive advantage: Nordstrom's advantage is a service reputation built over 125 years combined with a connected store, digital, and off-price network. Shoppers can buy online and pick up, return, or get alterations in stores, and Rack introduces younger, value-focused customers who often move to the full-price banner. Management says a good share of new Rack customers shop Nordstrom within three to four years. Family control also lets leadership invest for the long term without quarterly public reporting.

Future prospects matter as much as current results. The growth strategies below explain how Macy's, Inc. and Nordstrom, Inc. each plan to expand from here.

Macy's, Inc. 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.

Nordstrom, Inc. growth strategy: Nordstrom's growth plan has three parts. First, accelerate Nordstrom Rack, its largest source of new customers, with 22 openings in 2025 and a goal of up to 50 per year. Second, refine full-line store assortments, adding younger brands such as Princess Polly and planned 2026 additions such as NikeSkims and Hill House Home. Third, use real estate freed up by competitor bankruptcies, including Saks Global, where the right locations appear. Liverpool shares ideas on logistics and technology but the deal is not a merger, and the two retailers operate separately.

A closer look at the financial trajectory of Macy's, Inc. and Nordstrom, Inc. rounds out the comparison.

Macy's, Inc.: Macy's revenue has drifted down from $25.4B in FY2022 to $22.6B in FY2025 as the company closes stores, but profitability has recovered from a $45M net income low in FY2023 to $642M in FY2025. Comparable sales turned positive for FY2025, and Q2 2026 marked the fifth straight quarter of comparable-sales growth. After Q2 2026 the company raised FY2026 guidance to $21.68B-$21.83B in net sales and $2.15-$2.35 in adjusted EPS. Owned real estate, including Herald Square, remains a significant asset and drew takeover interest from Arkhouse and Brigade in 2023-2024. Macy's, Inc. is a historic and monumental American department store chain, maintaining a market valuation generally around $4 billion amidst heavy retail transformation.

Nordstrom, Inc.: Nordstrom's last public annual report covered FY2024 (ended February 1, 2025): total revenues of $15.016B, net sales of $14.557B, and net earnings of $294M, up from $134M in FY2023. Revenue peaked at $15.860B in FY2018, fell to $10.715B during the FY2020 pandemic year with a $690M loss, and has hovered around $15B since. Since going private in May 2025, Nordstrom no longer publishes quarterly results. Leadership told WWD in early 2026 that the company had less debt than a year earlier and had already repaid the debt taken on for the buyout using operating cash. Nordstrom, Inc. is a major American luxury department store chain, maintaining a market valuation generally exceeding $3 billion despite heavy shifts in the retail sector.