# Macy's, Inc. > Clarifo company profile — qualitative business description generated from > the company's filings. Financial statements, charts and ratios are > available on Clarifo (https://www.clarifo.com/en/companies/Macy's, Inc.). ## Overview Macy's, Inc. operates a portfolio of U.S. department store and beauty retail banners, including Macy's, Bloomingdale's and Bluemercury, across physical stores, digital channels and marketplace formats. The company sells apparel, accessories, cosmetics, home goods and other consumer merchandise, while also using private brands, off-price concepts and omni-channel fulfillment to differentiate its offer. ## Products & services • Department store retailing under Macy's and Bloomingdale's • Beauty retail through Bluemercury • Off-price and smaller-format stores, including Backstage and Bloomie's • Digital commerce and marketplace offerings • Private label and licensed brands via Macy's Merchandising Group • Credit card-related services and customer support functions - **Macy's nameplate retail** (55%) — Full-line Macy's stores, Macy's Backstage, Macy's small format and related digital sales. - **Bloomingdale's luxury retail** (20%) — Bloomingdale's full-line stores, Bloomingdale's The Outlet, Bloomie's and marketplace sales. - **Bluemercury beauty retail** (10%) — Prestige beauty, skincare and related services sold through Bluemercury stores and online. - **Private brands and licensed merchandise** (10%) — Company-owned brands and licensed labels designed and sourced through Macy's Merchandising Group. - **Other revenue and services** (5%) — Credit program services, marketplace commissions, restaurant sales and gift card breakage. - Department store retailing under Macy's and Bloomingdale's - Beauty retail through Bluemercury - Off-price and smaller-format stores, including Backstage and Bloomie's - Digital commerce and marketplace offerings - Private label and licensed brands via Macy's Merchandising Group - Credit card-related services and customer support functions ## Customers Macy's serves broad middle-market department store shoppers who buy apparel, accessories, cosmetics and home merchandise for everyday and seasonal needs. Bloomingdale's targets higher-income customers seeking premium and luxury brands, while Bluemercury serves beauty-focused consumers looking for prestige skincare and cosmetics. The company also attracts value-oriented shoppers through Backstage and digital marketplace customers seeking wider assortment and price variety. - **Macy's core department store customers** (primary) — Buy apparel, accessories, cosmetics and home goods from the Macy's banner for convenience, brand mix and promotions. - **Bloomingdale's premium and luxury customers** (primary) — Buy higher-end fashion, accessories and beauty from Bloomingdale's stores and digital channels for exclusivity and brand curation. - **Bluemercury beauty shoppers** (secondary) — Buy prestige beauty and skincare products, often valuing service, assortment depth and premium brands. - **Off-price and value shoppers** (secondary) — Buy discounted or opportunistic merchandise through Backstage and outlet formats to access lower prices. - **Marketplace and omni-channel customers** (emerging) — Buy through digital marketplace and omni-channel fulfillment for broader assortment, convenience and speed. - Mainstream department store shoppers buying apparel, beauty and home goods - Luxury customers seeking premium brands and exclusive Bloomingdale's assortments - Beauty consumers shopping Bluemercury for prestige skincare and cosmetics - Value-oriented shoppers using Backstage for off-price merchandise - Digital-first customers who want broader assortment and faster fulfillment - Marketplace shoppers looking for third-party brands and expanded choice ## Geography Macy's is primarily a U.S. retailer, with 680 store locations across 43 states, the District of Columbia, Puerto Rico and Guam as of early 2025. Most stores are in urban and suburban trade areas, and the business depends heavily on mall traffic, local demographics and regional consumer spending patterns. The company also has licensed Bloomingdale's stores in Dubai and Kuwait, but these are not a major part of the consolidated footprint. - **United States** (95%) — Core store base and overwhelming majority of sales and operations - **Puerto Rico and Guam** (3%) — U.S. territories with a small store footprint - **Middle East (licensed)** (2%) — Bloomingdale's licensed stores in Dubai and Kuwait - U.S. is the core market, with 680 stores across 43 states plus DC, Puerto Rico and Guam - Stores are concentrated in urban and suburban trade areas with dense population bases - Physical store traffic matters because stores drive sales, fulfillment and returns - Licensed Bloomingdale's stores operate in Dubai and Kuwait under third-party agreements - Supply chain sourcing is global, with most merchandise manufactured outside the U.S. ## Strategy Macy's is executing a three-year 'A Bold New Chapter' strategy focused on improving the customer experience, rationalizing underproductive stores and reallocating capital to higher-return locations and digital capabilities. The company is also pushing private brands, marketplace expansion and luxury growth at Bloomingdale's to improve assortment relevance and defend traffic in a highly promotional retail environment. - **Strengthen and reimagine Macy's nameplate** (short-term) — The core banner needs better productivity, relevance and traffic to offset store rationalization and online competition. - **Accelerate digital and omni-channel capabilities** (medium-term) — Stores and digital channels are linked, so better search, fulfillment and in-stock performance support conversion and retention. - **Grow luxury and premium banners** (medium-term) — Bloomingdale's and Bluemercury provide a more differentiated, higher-end customer proposition and help balance the Macy's banner. - **Preserve balance sheet flexibility and shareholder returns** (short-term) — Retail is cyclical and capital intensive, so liquidity and credit metrics support resilience through changing demand. - Close and monetize underproductive Macy's stores to focus on go-forward locations - Reimagine stores with better staffing, merchandising and customer experience - Expand digital, search, site enhancements and faster online fulfillment - Grow private brands and refresh assortments to improve differentiation - Accelerate Bloomingdale's luxury growth through exclusive partnerships - Maintain investment-grade credit metrics while returning capital to shareholders ## Risks Macy's faces execution risk in its store rationalization and omni-channel transformation, because traffic declines or weak customer response can reduce sales and trigger restructuring costs. It is also exposed to vendor, sourcing and tariff risk because most merchandise is sourced outside the U.S., primarily Asia, while its brand value depends on maintaining a strong shopping experience and reputation. - **Store traffic decline and mall weakness** [high] — The business relies on physical stores to generate sales, fulfillment and brand visibility, so lower traffic directly hurts revenue and fixed-cost leverage. - **Strategy execution risk** [high] — Store closures, reimagined locations and assortment changes may not produce the expected productivity gains or customer response. - **Supply chain and third-party dependence** [high] — The company depends on external vendors and sources most merchandise outside the U.S., creating disruption and insolvency risk. - **Tariffs and foreign trade policy** [high] — Higher import duties or policy changes can raise product costs and reduce gross margin if not passed through to customers. - **Reputational risk** [medium] — Brand perception affects customer loyalty, employee retention and access to capital, especially during restructuring and climate-related scrutiny. - Store traffic declines can pressure sales and force more closures or restructuring - Strategy execution risk if reimagined stores do not lift productivity - Vendor and sourcing disruption risk because most merchandise is imported - Tariffs and trade policy can raise costs and compress margins - Reputation and brand image matter because department stores compete on trust and relevance - Climate and supply chain events can disrupt private brand sourcing ## Accounting Macy's accounting is shaped by retail seasonality, store closures and real estate monetization, all of which can create quarter-to-quarter volatility in revenue, margins and restructuring charges. Investors should also watch estimates around long-lived asset impairment, lease-related obligations, gift card breakage, returns and the timing of other revenue such as credit program services and marketplace activity. - **Long-lived asset impairment and restructuring charges** — Can materially change operating income in transformation periods - **Real estate monetization gains** — Can distort comparability across quarters and years - **Seasonality and comparable sales** — Makes interim results less representative of full-year performance - **Other revenue recognition** — Affects mix, gross margin and revenue growth rates - **Lease accounting** — Affects operating expenses, liabilities and cash flow presentation - Seasonality affects sales, margins and inventory levels across holiday and non-holiday periods - Store closure and restructuring charges depend on impairment and exit assumptions - Real estate gains can materially affect operating income in periods of asset sales - Gift card breakage and restaurant sales sit in other revenue and can move results - Lease accounting matters because stores and distribution sites create long-term obligations --- *Last updated: 2026-04-28T20:25:58.785970+00:00*