Macys is a chain of American department stores with its flagship store in Herald Square, New York City, which has been billed as the "world's largest store" since completion of the Seventh Avenue addition in 1924. The company also operates two other national flagship stores, at San Francisco's Union Square and the former Marshall Field's flagship on State Street in the Chicago Loop.[1]
The company also has several divisional flagship stores, including in Atlanta, Miami, St. Louis, and Seattle.
The company is also well-known for sponsoring the annual Macys Thanksgiving Day Parade, a parade held on the streets of New York City annually since 1924.
The company is part of the Cincinnati-based Federated Department Stores.
Contents
[hide]
* 1 History
o 1.1 Expansion
o 1.2 Management buyout
o 1.3 Federated Department Stores merger
o 1.4 Merger with May Department Stores
o 1.5 Macys becomes a national brand
* 2 Divisions
* 3 Controversy
* 4 Trivia and pop culture
* 5 References
* 6 External links
[edit] History
Macys was founded in 1858 by Rowland Hussey Macy. Macy had established a dry goods store in downtown Haverhill, Massachusetts in 1851. He moved to New York City and established a new store named "R.H. Macy & Company" on the corner of 14th Street and 6th Avenue, later moving to 18th Street and Broadway, on the "Ladies' Mile", the 19th century elite shopping district, where it remained for nearly forty years.
The Macys flagship department store with the famous brownstone at 34th and Broadway.
The Macys flagship department store with the famous brownstone at 34th and Broadway.
In 1896, R. H. Macys was acquired by Isidor Straus and his brother Nathan, who had previously sold merchandise in the store. In 1902 the flagship store moved further uptown to Herald Square at 34th Street and Broadway. Although the store initially consisted of just one building, it expanded through new construction and merging, eventually occupying almost the entire block bounded by 7th Avenue on the west, Broadway on the east, 34th Street on the south, and 35th Street on the north. The only exception is, to this date, one small brownstone on the corner of 34th and Broadway, which remains a separate property. Macys rents it annually for a legendary sum and camouflages it with giant signs. This building is a remnant 19th-century building purchased in 1900 for US$375,000 by Robert Smith, Macys neighbor at the old 14th Street location. The facade around the building was erected to camouflage it so that it would not detract from the Macys store, and Macys rented the building in later years from the heirs and their successors.
The original Broadway building was built in 1901–1902 by architects De Lemos & Cordes. It is sheathed in a Palladian facade, but has been updated in many details. Other additions to the west were added in 1924, 1928, and 1931, all designed by architect Robert D. Kohn. They are all in the Art Deco style.[2]
The same problem presented itself when Macys built a store on Queens Boulevard in Elmhurst, Queens, New York. This resulted in an architecturally unique round department store on 90 percent of the lot, with a small privately owned house on the corner.
[edit] Expansion
Macys underwent a period of expansion during the 1920s and 1930s. The company went public in 1922 and began to open up branch stores around New York and Long Island. Acquisitions were also made outside of the New York City region. Department stores in Toledo (LaSalle & Koch 1924), Atlanta (Davison-Paxon-Stokes 1929), Newark, New Jersey (L. Bamberger & Co. 1929), San Francisco (O'Connor Moffat & Company 1945), and Kansas City (John Taylor Dry Goods Co. 1947) were purchased during this time. O'Connor Moffat was renamed Macys San Francisco in 1947, later becoming Macys California, and John Taylor was renamed Macys Missouri-Kansas in the 1950s.
Macys New York began opening stores outside of its historic New York City–Long Island trade area in 1983 with a location at Aventura Mall in Aventura, Florida (a suburb of Miami), followed by several locations in Houston, New Orleans, and Dallas. Davison's in Atlanta was renamed Macys Atlanta in early 1985 with the consolidation of an early incarnation of Macys Midwest (former Taylor and LaSalle's stores in Kansas City and Toledo, respectively), but late in 1985, Macys turned around and sold the former Midwest locations. Bamberger's, which had aggressively expanded throughout New Jersey, into the Greater Philadelphia Metropolitan area in the 1960s and 1970s, and into the Baltimore Metropolitan area in the early 1980s, was renamed Macys New Jersey in 1986.
[edit] Management buyout
In 1986 Edward Finkelstein, Chairman & CEO of R.H. Macy & Co., Inc., led a leveraged buy-out of the company and subsequently engaged in a takeover battle for Federated Department Stores, Inc., in 1988 that he lost to Canada's Campeau Corp. As part its settlement with Campeau, Macys purchased Federated's California-based, fashion-oriented Bullock's and its high-end Bullocks Wilshire and I. Magnin divisions. It followed with a reorganization of its divisions into Macys Northeast (former Macys New York and Macys New Jersey), Macys South/Bullock's (Macys Atlanta stores plus Macys New York's operations in Texas, Florida and Louisiana), and Macys California, the later including a semi-autonomous I. Magnin/Bullocks Wilshire organization. The Bullocks Wilshire stores were renamed I. Magnin in 1989.
Subsequently, R.H. Macy & Co., Inc., filed for bankruptcy on January 27, 1992, after which point its banks brought in a new management team, which shut several underperforming stores, jettisoned two-thirds of the luxury I. Magnin chain, and reduced Macys to two divisions; Macys East and Macys West.
[edit] Federated Department Stores merger
The Macys in downtown Cincinnati, home of Federated Department Stores.
The Macys in downtown Cincinnati, home of Federated Department Stores.
At the start of 1994, Federated began pursuing a merger with Macys. After a long and difficult courtship, R.H. Macy & Co. finally merged with Federated Department Stores on December 19, 1994. Federated promptly shut down the remainder of the I. Magnin chain, converting several to Macys or Bullock's and selling four in Carmel, Beverly Hills, San Diego and Phoenix to Saks Fifth Avenue. Federated also merged its Abraham & Straus/Jordan Marsh division with the new "Macys East" organization based in New York, renaming the Abraham & Straus stores in metropolitan New York with the Macys nameplate in 1995, and then erasing the Jordan Marsh moniker in New England in early 1996.
Federated followed that by leading a bid in mid-1995 bid to acquire the bankrupt Woodward & Lothrop/John Wanamaker organization in the mid-Atlantic region, a bid it lost to rival group led by long-time rival and future acquisition target May Department Stores. Instead Federated soon agreed to purchase Broadway Stores, Inc. (owner of The Broadway, Emporium and Weinstock's stores in California, Arizona, Nevada and New Mexico), from its majority shareholder, Samuel Zell, thereby gaining a leading position in Southern California and a dominant one in the Northern California marketplace. In early 1996 Federated dissolved Broadway Stores, incorporating the majority of its locations into Macys West, rebadging them as Macys and using the opportunity to retire the Bullock's name. Several of the redundant Broadway locations were used to establish Bloomingdale's on the West Coast, while many other were sold to Sears.
In 2001 Federated dissolved its Stern's division in the New York metropolitan area, with the bulk of the stores being absorbed into Macys East. Additionally, in July 2001 it acquired the Liberty House chain with department and specialty stores in Hawaii and Guam, consolidating it with Macys West.
In early 2003 Federated closed the majority of its historic Davison's franchise in Atlanta (operating as Macys since 1985), rebranding its other Atlanta division Rich's with the unwieldy name, Rich's–Macys. The original Macys Lenox Square and Perimeter Mall locations were extensively remodeled and opened in October 2003 as the first Bloomingdale's stores in Atlanta. The company rapidly followed suit in May 2003 with similar rebranding announcements for its other nameplates, Burdines in Florida, Goldsmith's in Memphis, Lazarus in the lower Midwest, and The Bon Marché in the Pacific Northwest.
On March 6, 2005, the Bon-Macys, Burdines-Macys, Goldsmith's-Macys, Lazarus-Macys, and Rich's-Macys stores were renamed as simply "Macys", the first two as the new Macys Northwest and Macys Florida divisions respectively and the later three as part of the Macys Central division. As of July 2005, Macys had 424 stores throughout the U.S.[3]
[edit] Merger with May Department Stores
On February 28, 2005, Federated agreed to terms of a deal to acquire May Department Stores for $11 billion in stock, creating the nation's second largest department store chain with $30 billion in annual sales and more than 1,000 stores.
On July 28, 2005, Federated announced, based on the success of converting its own regional brands to the Macys name, its plans to similarly convert 330 regional department stores owned by the May Company (as May Department Stores was generally referred to) to the Macys nameplate. This included May's Famous-Barr, Filene's, Foley's, Hecht's, The Jones Store, Kaufmann's, L.S. Ayres, Meier & Frank, Robinsons-May, and Strawbridge's chains, pending approval of the merger by federal regulators. This was met with negative reaction in many of the local areas of these department stores because they were considered local institutions in those regions. Where Macys stores were in close proximity to May Company stores, some redundant stores would be closed while others would be converted to Bloomingdale's, Federated's luxury chain.
On September 20, 2005, Federated announced that all of its Marshall Field's stores (including the legendary State Street store in Chicago) would become Macys by the end of 2006, becoming the new Macys North division. This last announcement was met with negative publicity as Marshall Field's had long been considered a Chicago institution.
On January 12, 2006, Federated announced its plans to divest May Company's Lord & Taylor division by the end of 2006 after concluding that chain did not fit with their strategic focus for building the Macys and Bloomingdale's national brands. On June 22, 2006, Macys announced that NDRC Equity Partners, LLC would purchase Lord & Taylor for US$1.2 billion,[4] and completed the sale in October 2006.
[edit] Macys becomes a national brand
On February 21, 2006, Macys appointed a new chief marketing officer, Anne MacDonald, to oversee the transformation of Macys into a "national department store." By September 9, 2006, and after renaming the former May Company locations, Macys operated approximately 850 stores in the United States. To promote its largest and most recent expansion, Macys used a version of the Martha and the Vandellas hit song, "Dancing in the Street" in its advertising. Also, the company took props from its annual Thanksgiving Day parade to various re-labeled stores throughout the nation, in what the company marketed as its "Parade on Parade."
Macys significantly increased its use of television advertising and product placement in 2006 and 2007, using branding spots that featured the new Macys star logo. During the February 11, 2007, episode of the popular ABC television series Desperate Housewives, a Macys location in the fictional city of Fairview was featured, a rare instance of product placement promoting a department store chain in a scripted series. Nearly two years earlier, one of the first national commercials for Macys had aired during Desperate Housewives, shortly after the conversion of Rich's, Lazarus, Goldsmith's, The Bon Marché and Burdines.
On February 27, 2007, Federated Department Stores announced plans to change its corporate name from Federated Department Stores, Inc., to Macys Group, Inc.[5] By March 28, the company further announced plans to convert its stock ticker symbol from "FD" to "M", and revised its earlier proposed name change, instead opting to change to Macys, Inc. [6] If approved by shareholders, the change would take place on June 1, 2007. The company will continue to operate stores under both the Macys and Bloomingdale's nameplates.
[edit] Divisions
As of February 2006, Macys stores were organized into seven divisions with store locations in 45 states, Washington, D.C., Puerto Rico and Guam. As of February 2007, the only states without a Macys store were Alaska, Arkansas, Iowa, Mississippi and Nebraska. The seven current Macys divisions include five former divisions existing as of 2005, plus the six former regional May Company divisions.[3] (Bloomingdale's is an eighth retail division of Federated. There are also seven administrative divisions that provide corporate support services.)
* Macys East, headquartered in New York — 216 stores/29,100 employees (employment figure is for Macys East division prior to February 2006) in Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, Virginia, Washington, D.C. and Puerto Rico. (In addition to Macys, this division formerly operated Filene's stores, the majority of Kaufmann's stores in upstate New York, Strawbridge's, and Hecht's stores in the mid-Atlantic region. After announced divestitures/store closures are completed by late 2006, this division will have 185 locations.)
Exterior of typical suburban Macys store (formerly a Marshall Fields).
Exterior of typical suburban Macys store (formerly a Marshall Fields).
* Macys Florida, headquartered in Miami (formerly Burdines)— 61 stores/9,800 employees in Florida. The majority of the stores were formerly Burdines.
* Macys Midwest, headquartered in St. Louis — 95 stores in Illinois, Indiana, Kansas, Kentucky, Missouri, New York, Ohio, Pennsylvania, and West Virginia. (Formerly operated as Famous-Barr, The Jones Store, L.S. Ayres, the bulk of Kaufmann's stores, and Macys stores in Western Pennsylvania. After announced divestitures/store closures are completed in late 2006 and final reorganization planned for early 2007, this division will operate approximately 110 stores.)
* Macys North, headquartered in Minneapolis — 65 stores in Illinois, Indiana, Michigan, Minnesota, North Dakota, Ohio, South Dakota, and Wisconsin. (Formerly operated as Marshall Field's, plus the former L.S. Ayres location in Hobart, Indiana, and Macys at Mall of America.)
* Macys Northwest, headquartered in Seattle (formerly The Bon Marché)— 71 stores/7,200 employees (employment figure is for Macys Northwest division prior to February 2006) in Idaho, Montana, Oregon, Utah, Washington, and Wyoming. (In addition to former Bon Marché stores, the division added stores formerly operating as Meier & Frank.)
* Macys South, headquartered in Atlanta (formerly Macys Central)— 166 stores/14,100 employees (employment figure is for former Macys Central division) in Alabama, Georgia, Indiana, Kentucky, Louisiana, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Virginia, and West Virginia. (In addition to Macys stores, operates former Hecht's stores in southern Virginia and North Carolina, and Foley's stores in Louisiana, Oklahoma, and Texas. After announced store divestitures in 2006 and final reorganization planned for early 2007, this division will encompass approximately 130 locations.)
* Macys West, headquartered in San Francisco — 232 stores/31,100 (employment figure is for Macys West division prior to February 2006) in Arizona, California, Colorado, Hawaii, Nevada, New Mexico, Texas and Guam. (In addition to Macys stores, operates former Foley's locations in Colorado, New Mexico, and El Paso, Texas, as well as Robinsons-May stores. After announced divestitures/store closures are completed by late 2006, this division will operate approximately 190 stores.)
[edit] Controversy
In July 2003, then-New York State Attorney General Eliot Spitzer launched an investigation of the private policing system Macys has used to deal with suspected shoplifters. The investigation was prompted by a civil rights lawsuit and an article in The New York Times, which reported on many of Macys tactics, including private jails and interrogations.[7] Spitzer's investigation found many of Macys actions, from ethnic profiling to handcuffing detainees, to be unlawful. Macys settled the civil rights complaint for US$600,000, claiming to have put the illegal tactics to an end while maintaining the security system itself.[8]
The “gay mannequins” that appeared in the window display of the Macys East store in downtown Boston.
The “gay mannequins” that appeared in the window display of the Macys East store in downtown Boston.
The Macys East downtown Boston store (formerly the Jordan Marsh flagship) touched off a local public relations firestorm with the June 6, 2006, removal of two mannequins and the Web address of the AIDS Action Committee from a window display promoting Boston's annual gay pride celebration. The removal was apparently in response to pressure from MassResistance, a local group opposed to same-sex marriage, whose members complained the mannequins were “homosexual”. The removal of the mannequins was widely condemned by residents and officials, including Boston mayor Thomas Menino, who was quoted as saying:
“ I’m very surprised that Macy’s would bend to that type of pressure. Macy’s was celebrating a part of our community, gay Pride, and they should be proud of the gay community, and I’m proud of the gay community and gay Pride. Once again it’s the radical right wing that’s doing this.[9] ”
Macys response to the debacle was to publish an apology by the Macys East chairman, Ron Klein, in In Newsweekly, a Boston-area weekly with a large gay readership. Klein's description of the incident as “an internal breakdown in communication,” further stated it was regrettable some would doubt Macys commitment to diversity as a result.[10] The Web address was later restored—the mannequins, however never made a reappearance.
In Chicago, Macys move into the Marshall Field's building on State Street upset many residents.[11] While some have protested, many once loyal shoppers are simply shopping elsewhere.[12] Macys reported in December 2006 slowed sales in stores that once were Marshall Field's.[13]
Most recently, the Macys located at Colonie center, Colonie, NY was the target of a sting operation, used to nab perpetrators of lewd behavior. Several male suspects were brought into the local police station and questioned as a result of complaints of noises heard outside of the men’s room. The primary suspect, known only as "Balls" of Mineola, NY was identified as the ringleader. Balls admitted that he and the others questioned were engaged in mutual oral gratification in the Macy’s bathroom. The bathrooms have since been closed until further notice.
