Reinventing Macy’s
- Brian
- Mar 15
- 5 min read
Macy’s is a 165+ year old department store that has undergone numerous transitions. From a single shop in New York, to the world’s largest department store, to a chain spanning the United States, and now a struggling retailer fighting for its next play, Macy’s has quite a history. Let’s take a brief tour on its history, what made it great, what has tipped the scales, and how it can get back to greatness.
Founded in 1868 by Rowland Hussey Macy, the fledging store quickly grew in both revenue and physical size. He grew the business, added partners, and launched innovative things such as unique window displays, on-site tailoring, and more. It wasn’t until long after Mr. Macy died that it changed hands to the Strauss Brothers. Seeing even more potential, they expanded further by moving the business to its current location at Herald Square. They continued to expand the store, growing it to its current size.
In 1941, Macy’s expanded beyond its Herald Square store. This was the first of many future stores. It later began acquiring competitors, expanding nationally, eventually being purchased by Federated Department Stores. After future acquisitions, all Federated stores were renamed Macy’s, cementing the brand for another generation. The company peaked at 641 stores. Since then, that count has fallen to 541 (February 2025) with another 66 set to close.
Since the mid 2000’s, Macy’s began a campaign of heavily discounting products, leading to the rise of what are now its fiercest competitors: off-price stores. As Macy’s, and similar stores, purchased goods they ultimately couldn’t sell at high prices, they either discounted themselves or moved off to others such as Home Goods, TJ Maxx, Marshall’s, and others. Their famed “1 day sales” effectively became “every other day” sales. Their stores slowly went beautiful, organized and neat to looking more like massive discount stores where people can barely move between racks of product. This led to a culture reminiscent of a discount retailer and less like a department store.
Fast forward to today and the company has announced multiple transition and reformation plans, from creating “Backstage” stores within existing stores, to similar off-price and discount variations, all of which, in my opinion, denigrate the core brand and will ultimately further the company’s demise. The CEO has announced again more plans reform and grow again, however, shareholder value continues to erode. Its path is similar to that of JC Penney and Sears, where the core remaining value is effectively real estate. The store at Herald Square is estimated to be worth $1.5B alone.
The Macy’s team has largely ignored changing consumer habits and has been slow to reinvent itself to meet their demands. Consumers now shop online and look for deals more than ever before instead of venturing out into cramped stores with products that don't match their perceived value. And since comparing prices, specifications, and seeing others’ opinions has never been faster or easier, Macy's is at a disadvantage against fast and cheap overseas competitors.
The Idea
Macy's has the opportunity to appeal to both current and new customers and avoid repeating J.C. Penney's dramatic mistake from a half decade ago. How? Looking to the past can often provide guidance on the future. While trends may change, the core of humanity remains the same: we crave what's new, yet familiar, places for social interactions, and inviting spaces that inspire us.
My idea is to create a new concept store that heralds back to the original:
R.H. Macy & Co. stores are smaller format stores reminiscent of the heyday of retail. Beautifully designed inside and out, this new space leans on the company's history while implementing these core pillars for success:
Smaller store formats
Open & inviting spaces
Putting a culture of service and responsiveness at the forefront
Fewer products at price points attainable by most Americans with high perceived value and can carry extensive positive reviews.
Reimagined stores that present as vintage, fun, and inviting at the same time.
Using classic elements such as steel, reclaimed wood, and more.
Add tactile areas where guests are encouraged to try out
Imagine for a moment, standing in front of a sandstone building lined with huge arched windows, harkening to beautiful French Parisian architecture. Impecably curated product displays glow in the windows. To the right, a quaint and bustling cafe connects the inside with the outside with freshly manicured hedges surrounding it. The entrance has dark steel meant to look like old wrought iron with with an unpresumptuous bronze R.H. Macy & Co. sign resting on it. A beautiful victorian arched glass doorway, flanked with dark steel, sandstone, and warm lighting, welcomes you into a space that feels more like a 1920's resort than a store. At no more than 1/3 the size of a typical Macy’s today, the space feels big, but no overwhelming. Beautiful matte tile floors stretch across the store. Reclaimed wood beams line the walls. Vintage lights hang from the ceiling, providing a warmth that begs you to explore.
Each section of the store is clearly visible, well-lit, and has vintage racks and display tables that are neatly curated and not over-packed. Technology is tactfully integrated into tables, displays, and more to showcase images and videos of the products being used, as well as to order sizes or colors not presently available in-store. Assistants are on standby to help you find the right color, size, and style to best suit you.
At night, the cafe turns into a dessert bar with calm jazz music filling the air while the wait staff wears the latest fashion. The tabletops are digital with the opportunity to purchase the clothes and have them brought to you before you finish your dessert and wine.
The store is clean, simple, with fun twists around every turn, and set with product brought in by empowered merchants who have spent more time on analyzing future trends and working with suppliers with great stories than on how cheap they can buy for.
The key to this is giving the impression of high society without the expense. Every penny spent on the building is a penny that could have gone to managing prices, providing better service, or ensuring products are of incredible value.
Tomorrow’s Impact
Reinventing to get closer to its roots and resonate with a younger generation can not only save Macy’s, but save American retail from foreign cheap intruders, such as Temu and Shein. Staying smaller and more nimble will allow the company to adapt as each new generation rises. Using timeless elements in the building instead of trendy ones can help ensure that it remains beautiful and un-needing of constant revision for generations to come. A place where employees feel a part of something larger than just another store, where the help they provide to guests gives them a sense of pride and accomplishment instead of just another transaction.
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