Macys — Business Overview
What does Macy's do?
Macy's, Inc. is an omnichannel department store operator running three distinct retail brands across physical stores, websites, and mobile apps. The company sells apparel, accessories, cosmetics, home goods, and more to roughly 40 million active customers annually. Its 665 stores span a wide consumer spectrum, from everyday middle-income shoppers to high-end luxury buyers.
The three brands each target a different customer:
| Brand | Description | Customer Target |
|---|---|---|
| Macy's | Full-line and smaller-format department stores; also operates Macy's Backstage (off-price) | Middle-to-higher income, value-conscious |
| Bloomingdale's | Upscale department stores and Bloomies smaller formats; Bloomingdale's The Outlet for off-price | Affluent, premium/luxury shoppers |
| Bluemercury | Luxury beauty and spa services boutiques in neighborhood locations | Affluent beauty enthusiasts |
Revenue is heavily weighted toward women's categories, with home goods declining noticeably. Total net sales were $21.8 billion in fiscal 2025 (ended January 2026), down from $23.1 billion two years prior. Women's accessories, shoes, cosmetics, and fragrances led at $9.1 billion, followed by women's apparel at $4.8 billion, men's and kids' at $4.7 billion, and home/other at $3.2 billion.
How does Macy's make money?
The core revenue engine is merchandise sales across its three brands and multiple channels. Customers shop in-store or online, and Macy's earns a retail margin on the goods it sells. The company maintains a large portfolio of roughly 29 private label brands (brands it owns, like Charter Club, On 34th, and Hotel Collection), which tend to support higher margins than selling third-party national brands.
Beyond merchandise, Macy's earns revenue from two notable ancillary streams. First, its credit card program — a profit-sharing arrangement with a financial partner — generates income tied to customer spending on Macy's-branded credit cards. Second, Macy's Media Network is the company's retail media business, where brand partners pay to advertise across Macy's digital platforms, leveraging its large customer base. These non-merchandise streams add to total revenue without requiring additional inventory investment.
What market does Macy's operate in?
Macy's competes in U.S. retail, a massive but highly pressured market for traditional department stores. The company faces competition from a broad set of formats: other department stores, off-price chains (think TJ Maxx), specialty retailers, mass merchants (like Target or Walmart), online marketplaces (like Amazon), and direct-to-consumer brands. This is a mature, competitive market where growth is hard to come by rather than a fast-expanding one.
Secular trends (long-term structural shifts) are working against traditional department store formats. The rise of e-commerce has given consumers more price transparency and convenience, squeezing the middle market where Macy's has historically operated. Off-price retailing has also grown rapidly, drawing bargain-minded shoppers away from full-price department stores. Macy's declining total revenue over the past three years — from $23.1 billion to $21.8 billion — reflects this pressure.
Who are Macy's main competitors?
The competitive landscape is broad and fragmented, with no single dominant rival. Macy's competes across multiple formats simultaneously: Nordstrom and Bloomingdale's overlap in the upscale department store space; TJX Companies (TJ Maxx, Marshalls) and Burlington compete for off-price shoppers; Amazon and specialty e-commerce players compete online; and fast fashion and direct-to-consumer brands compete for apparel spending. The filing identifies competition on customer experience, brand relevance, pricing clarity, convenience, fulfillment speed, and digital quality as the key battlegrounds.
Macy's claims several competitive advantages rooted in its scale and multi-brand structure. Its 40-million-strong active customer base, loyalty programs across all three brands, private label portfolio, and retail media network are cited as differentiators. The company's Bold New Chapter strategy is its current attempt to sharpen relevance: investing in higher-potential Bloomingdale's and Bluemercury stores, closing underperforming Macy's locations, and modernizing operations to fund reinvestment.
Where does Macy's operate?
Macy's is overwhelmingly a U.S.-focused retailer, with stores concentrated in densely populated urban and suburban areas. The filing does not break out revenue by geography, but the vast majority of its 665 stores and all three of its main brand operations are domestic. No single supplier accounts for more than 4% of purchases, suggesting a globally diversified sourcing base, but the customer-facing business is primarily American.
Bloomingdale's has a small international licensed presence in the Middle East. The brand operates through licensed partnerships in Dubai (United Arab Emirates) and Al Zahra (Kuwait). These are licensing arrangements, meaning a local partner runs the stores under the Bloomingdale's name — Macy's collects fees rather than operating the stores directly, limiting its financial exposure in those markets.