Macy's – On a Quest to Regain Momentum

In August 2016, US-based department store retailer Macy’s announced that it was closing down 100 of its more than 700 stores. This was in addition to the 40 stores it had closed during the year. This came in the aftermath of six quarters of drop in same store sales, and dwindling profits, amidst a changing environment, growing competition, and changing consumer preferences.

In its 150-year history, Macy’s had pioneered department stores in the US and was credited with several firsts in the retail industry like the one price system, no bargains, creative merchandise, etc. Over the years, it had grown through acquisitions. In 1994, a holding company for several family-owned businesses, Federate Department Stores, acquired Macy’s to become the largest department store in the US. All the stores that were operated by Federated were converted into Macy’s stores. In 2006, Federated acquired US-based May Department stores which operated several regional department stores across the country. Over the next few years, all the May stores were converted to Macy’s.