Macy’s Then and Now: A History and Quick Recap

The History and Overview of Macy’s

Walk through almost any American city, and you will find a familiar department store story nearby. In this case, it starts with a small New York shop and grows into a national retail name.

Over time, the business became known for big moments, bold promotions, and a flagship that turned into a landmark. It also faced hard seasons that forced reinvention.

Here is an easy-to-follow look at how it began, how it grew, and what it is working on now.

A Red Star, A New York Start

In 1858, Rowland H. Macy founded the business in New York City. That simple start sits at the center of everything that came after.

The brand’s red star has a personal root. It is tied to a tattoo the founder had.

From the beginning, the goal was not to be quiet. The early story is linked to value and strong advertising that helped it stand out in a crowded market.

The Early Promise: Value People Could Trust

In a fast-moving city, trust is a hard thing to earn. The firm built a reputation around value, and it put serious effort into getting noticed.

That mix mattered because shoppers had choices. Advertising and a clear promise helped draw people in and bring them back.

As the store gained ground, it started to feel less like a local shop and more like a growing New York institution.

The Straus Era And A Bigger Ambition

By the late 1800s, the business entered a new phase. Isidor and Nathan Straus, who had previously operated the store’s china and glassware department as licensees, became partners in the firm in 1888 and assumed full ownership in 1896.

That shift helped set up the next major leap. The store’s future would be tied to a larger presence and a stronger sense of place in the city.

It is also part of the story that a key supervisor, Margaret Getchell, is credited with helping drive success after the Civil War. Her role is noted as an early example of major business leadership by a woman.

Herald Square Becomes The Flagship

In 1902, the company opened its flagship at Herald Square in New York City. That move helped lock in a public identity that still shapes how people picture the brand today.

For many years, the Herald Square flagship was recognized as the world’s largest department store, a title it held for decades. That scale was not just a detail.

It signaled a new kind of retail confidence. The business was not only selling goods, but also selling an experience tied to place, size, and spectacle.

The Parade That Turned Into A Tradition

In 1924, the Thanksgiving Day Parade began. It was a bold idea that connected the brand to a national holiday feeling.

While the parade was first televised locally in 1939, it began its long-standing tradition of national network broadcasting on NBC in 1948. This exposure helped turn the event into a shared holiday ritual for millions of homes across the country.

Over time, the parade became more than a marketing moment. It became a cultural marker that kept the company present in the public mind, even for people who did not shop often.

Joining A Larger Department Store Family

Retail did not stay small for long in the United States. Big groups formed, and brands were often brought together under shared ownership.

In 1929, Federated Department Stores was formed, and the brand became part of that larger structure. This kind of move mattered because it changed how the business could scale and compete.

It also meant decisions were increasingly shaped by a wider corporate strategy, not only by local store leadership.

A Hard Turn: Debt, Recession, And Bankruptcy

Not every chapter is celebratory. In 1986, the company was purchased in a leveraged buyout, and the debt load became part of the next struggle.

Britannica connects that pressure, along with recession conditions, to what happened next. In 1992, the company filed for bankruptcy.

That was a serious reset moment. It forced changes that reshaped the organization and opened the door to a new ownership path.

The Federated Deal And A New Path Forward

In 1994, Federated Department Stores, which had previously owned a stake in the company decades earlier, acquired Macy’s following its bankruptcy. This acquisition effectively brought Macy’s under the Federated corporate umbrella, which later rebranded entirely as Macy’s, Inc.

That deal helped stabilize the business and set up later consolidation. It also tied the future brand strategy more closely to a larger national retail plan.

From there, the story becomes less about one store and more about how a retail system is built and maintained across many markets.

National Consolidation And A Name Change

In 2005, Federated acquired The May Department Stores. The purchase expanded the overall enterprise and brought in major regional department store names.

In 2007, Federated changed its corporate name to Macy’s, Inc. That rebrand made the structure clearer to the public.

It also signaled that the company wanted one main identity that could travel across the country, even when stores had different local histories.

More Than One Nameplate

Today, Macy’s, Inc. operates multiple retail nameplates. It includes Macy’s, Bloomingdale’s, and Bluemercury.

That mix matters because it lets the company serve different shopper needs with different store concepts. It is one enterprise, but not one single shopping experience.

In 2015, the company announced an agreement to acquire Bluemercury. That move strengthened the beauty specialty side of the business.

What The Company Sells And What It Offers

At its core, this is a retail business built around department store shopping. That means a broad assortment sold in stores and through digital channels.

The company describes a nationwide footprint paired with a major e-commerce business. In plain terms, it aims to meet shoppers in stores and online.

It also points to “offering iconic brands” and “great value” as key parts of the customer promise. This focus on “Own Your Style” helps guide their selection and service strategy.

• Department store retail through the Macy’s nameplate, supported by stores and e-commerce.
• Luxury department store retail through Bloomingdale’s.
• Beauty specialty retail through Bluemercury.

How It Makes Money

The main engine is straightforward. It sells products through its stores and online channels across its nameplates.

In addition, the company has publicly described a plan to monetize certain assets through 2026 as part of its strategy. That is presented as a way to strengthen performance and support reinvestment.

The key point is simple. Revenue is tied to retail sales, and the strategy aims to focus resources where returns can be stronger.

• Retail sales from stores and digital shopping across the nameplates.
• Strategy-driven asset monetization goals, disclosed as part of the 2024 plan.

The Customers It Tries To Serve

A department store lives and dies by whether it stays relevant to everyday shoppers. The company frames its mission around serving customers with quality brands and a better shopping experience.

It also draws a clear line between its mainstream department store business and its luxury and beauty growth priorities. Those segments are meant to reach shoppers with different needs and budgets.

That split is part of how it tries to stay flexible in a changing retail world.

• Mainstream department store shoppers served by the Macy’s nameplate.
• Luxury-focused shoppers served by Bloomingdale’s and Bluemercury, which are highlighted as growth priorities in the strategy.

Big Ideas That Kept It In The Public Eye

Some companies stay famous because they invent a product. This one also stayed famous because it created moments people talk about.

The Thanksgiving Day Parade is the clearest example. Since 1924, it has connected the brand to a tradition that feels larger than shopping.

The flagship store at Herald Square is another example. A store can be a building, but it can also be a symbol.

• 1924: The Thanksgiving Day Parade begins and becomes an annual tradition.
• 1947: National television coverage expands the parade’s reach.
• 1902 onward: The Herald Square flagship anchors the brand’s public image in New York City.

Defining Moments That Changed The Direction

Long-running companies are shaped by turning points, not only by steady growth. In this story, several moments clearly changed what came next.

Ownership changes in the late 1800s helped set up expansion. The flagship move in 1902 helped build an enduring identity.

Then the modern era brought corporate consolidation and a hard reset through bankruptcy and restructuring.

• 1858: Founded in New York City by Rowland H. Macy.
• Late 1800s: The Straus brothers gain ownership and assume control.
• 1902: Herald Square flagship opens in New York City.
• 1924: Parade begins and becomes a recurring public event.
• 1992: Bankruptcy forces a major reset.
• 1994: Agreement to merge with Federated Department Stores.
• 2005–2007: Major consolidation and the Macy’s, Inc. name.
• 2024: A new strategy is announced to reshape the store base and invest in growth areas.

Competition And Pressure In Modern Retail

Department stores do not compete in a quiet field. They face pressure from other department store chains, large online retailers, and brand websites that sell direct to customers.

The company has acknowledged that internet retail is a major competitive force. That reality shows up in its focus on digital shopping and store experience improvements.

The result is a constant need to prove value, convenience, and trust.

• Traditional department store rivals in the U.S. retail landscape.
• Large e-commerce competitors with massive selection and convenience.
• Direct-to-consumer brand sites that pull shoppers away from multi-brand stores.

People And Leadership That Shaped The Story

Big retail stories are made by people, not only by buildings. The founder set the tone early, and later leaders and teams carried it forward through changing eras.

Britannica highlights Margaret Getchell as a key figure tied to post–Civil War success. It also notes the importance of Nathan and Isidor Straus in shaping the store’s direction.

In the current era, leadership is also part of the public story. Tony Spring became CEO effective February 4, 2024.

• Rowland H. Macy: Founder; linked to the red star trademark.
• Margaret Getchell: Noted as a major supervisor tied to early success and a pioneer businesswoman.
• Nathan and Isidor Straus: Owners who assumed control in the late 1800s.
• Tony Spring: CEO effective February 4, 2024; later became board chair in 2024.

Work, Teams, And Scale

It is easy to focus on storefronts, but retail is also a people business. Store teams, planners, and support roles all shape what customers see.

The company reported approximately 94,189 employees as of early 2024. This figure represents the workforce prior to the full implementation of the “Bold New Chapter” strategy, which involves significant store closures and organizational restructuring.

Even with a smaller store base planned, the business still depends on training, service, and consistent execution across many locations.

A Bold New Chapter: The Modern Plan

In 2024, the company announced a strategy called “A Bold New Chapter.” The goal was to improve performance and strengthen the shopping experience.

The plan is direct about store productivity. It calls for closing about 150 underproductive Macy’s locations through 2026, while investing in about 350 “go-forward” stores.

It also leans into luxury growth. The company says it plans to expand Bloomingdale’s and Bluemercury by up to 45 locations through 2026.

• Close about 150 underproductive Macy’s locations through 2026.
• Invest in about 350 go-forward Macy’s locations.
• Expand Bloomingdale’s and Bluemercury by up to 45 locations through 2026.
• Monetize $600–$750 million of assets through 2026 as disclosed in the strategy.

The 2025 Closures Announcement

Strategy often becomes real when it turns into a list of actions. In early 2024, the company confirmed that approximately 150 underproductive Macy’s locations would close through 2026 as part of its “A Bold New Chapter” strategy.

This move allows the company to prioritize investments in its remaining 350 “go-forward” locations.

This was positioned as a step toward focusing on stronger stores and improving the overall fleet. It also signaled a willingness to make difficult choices to reshape the business.

The closure news is part of a larger pattern in modern retail. Many legacy chains are reducing store counts while trying to improve what remains.

Impact On Culture And Society

Not many retailers become part of national culture. This one did, and the parade is the simplest proof.

Because the Thanksgiving Day Parade has run annually since 1924, it ties the brand to a shared public memory. That is a rare kind of long-term awareness.

The flagship also played a cultural role. A huge store in a central place becomes a landmark, whether or not someone shops there often.

• The Macy’s Thanksgiving Day Parade has been held annually since 1924.
• The parade first aired nationally on television in 1947.
• The Herald Square flagship has been described as the largest single store in the U.S. for many years.

Reputation, Trust, And Public Perception

Department stores depend on trust. People need to believe they can find the right brands, fair pricing, and a good experience.

Britannica describes the early reputation as built on value and strong advertising. That foundation helped the company grow into a widely recognized name.

In the modern era, public perception is also shaped by change. Store closures and reinvestment are watched closely because they affect communities and shopping habits.

How The Story Changed Over Time

The business started as one New York retail venture in 1858. Over time, it became part of a larger corporate structure and then a national enterprise with multiple nameplates.

The identity also evolved from local store fame to a broad national brand, supported by signature events and a flagship that stayed iconic. Then the digital age changed what shoppers expect, pushing new investments in online and store experience.

Today, the company is trying to sharpen its focus. The 2024 strategy is built around concentrating on stronger locations and expanding growth concepts.

Lessons From A Long Retail Journey

One lesson is that attention matters. The early emphasis on advertising and the later creation of a major parade both show the power of staying visible.

Another lesson is that structure matters. The 1986 buyout, the 1992 bankruptcy, and the later mergers show how financial and ownership choices can shape survival.

A final lesson is that reinvention is not optional. The 2024 plan is a reminder that long-lived brands still have to make hard changes to stay relevant.

• Visibility can be an asset when it is tied to real customer value.
• Ownership and debt decisions can change a company’s future for decades.
• Reinvestment and focus become essential when retail habits shift.

Future Challenges And Opportunities

The next years are about execution. Closing stores while improving remaining locations is complex, and customers notice when transitions feel uneven.

At the same time, the company sees growth opportunity in luxury and beauty. Expanding Bloomingdale’s and Bluemercury is framed as a key part of that future.

There is also a brand opportunity. If the go-forward stores feel better to shop, it can strengthen trust and loyalty.

• Challenge: Managing store closures while maintaining customer loyalty and service quality.
• Opportunity: Expanding Bloomingdale’s and Bluemercury as highlighted growth priorities.
• Opportunity: Improving store environments and digital shopping experiences under the 2024 strategy.

Where Things Stand Now

Right now, the company is in an active reshaping phase. The “A Bold New Chapter” strategy is the clearest signal of what leadership believes must change.

The plan points to fewer, stronger Macy’s locations, more investment in the best stores, and more growth in luxury and beauty concepts. It also includes disclosed goals for asset monetization through 2026.

In simple terms, the business is trying to become sharper and more modern. The next chapters will be judged by whether shoppers feel the difference.

Timeline Of Key Moments

This timeline highlights verified turning points from the founding to the current strategy era. It focuses on moments that clearly changed direction or expanded the brand’s reach.

Some entries describe long-term plans, because the company has publicly set goals through 2026. Those items are labeled as part of the strategy horizon.

Use this section as a quick reference as you read the bigger story.

1858

Rowland H. Macy founded the business in New York City.

1887

Nathan Straus gained an ownership stake, marking a major shift in who shaped the company’s direction.

1896

Nathan and Isidor Straus assumed full control of the business.

1902

The Herald Square flagship opened in New York City, creating a lasting landmark identity.

1924

The Thanksgiving Day Parade began and became an annual tradition.

1929

Federated Department Stores was formed, placing the brand within a larger department store group.

1947

The Thanksgiving Day Parade began to be televised nationally.

1986

The company was purchased in a leveraged buyout, increasing financial pressure during the years that followed.

1992

The company filed for bankruptcy.

1994

An agreement was reached to merge with Federated Department Stores, helping set a new path after bankruptcy.

2005

Federated acquired The May Department Stores, expanding the enterprise.

2007

Federated changed its corporate name to Macy’s, Inc.

2015

The company announced an agreement to acquire Bluemercury, strengthening its beauty specialty business.

2024

Tony Spring became CEO effective February 4, 2024.

2024

“A Bold New Chapter” strategy was announced on February 27, 2024, including store closures, reinvestment, luxury expansion, and asset monetization goals through 2026.

2025

On January 9, 2025, the company confirmed that 66 Macy’s locations would close as part of the broader strategy.

2026

Strategy horizon: The plan calls for closing about 150 underproductive Macy’s locations through 2026, investing in about 350 go-forward stores, expanding Bloomingdale’s and Bluemercury by up to 45 locations, and monetizing $600–$750 million of assets through 2026.

Verified Fast Facts

If you want the short version, these facts give you the core structure of the story.

• Founded in 1858 by Rowland H. Macy in New York City.
• The red star trademark is tied to the founder’s tattoo.
• The Herald Square flagship opened in 1902 in New York City.
• The Thanksgiving Day Parade has been held annually since 1924.
• The parade began to be televised nationally in 1947.
• The company went through a leveraged buyout in 1986 and filed for bankruptcy in 1992.
• In 1994, there was an agreement to merge with Federated Department Stores.
• Federated acquired The May Department Stores in 2005 and changed its corporate name to Macy’s, Inc. in 2007.
• Macy’s, Inc. operates the nameplates Macy’s, Bloomingdale’s, and Bluemercury.
• The company announced an agreement to acquire Bluemercury in 2015.
• Tony Spring became CEO effective February 4, 2024.
• As of February 1, 2025, the company reported 94,189 employees.
• In 2024, the company announced “A Bold New Chapter,” including a plan to close about 150 underproductive Macy’s locations through 2026 and invest in about 350 go-forward stores.
• On January 9, 2025, the company confirmed closures of 66 Macy’s locations as part of that plan.

 

Sources: Macy’s, Inc., Macy’s, Encyclopaedia Britannica, U.S. Securities and Exchange Commission, Ajay Suresh from New York, NY, USA, CC BY 2.0, via Wikimedia Commons