Ever wondered how Macy's became a fashion giant? Founded in 1858 by Rowland Hussey Macy, this iconic store started as a small dry goods shop in New York City. Over the years, Macy's has grown into a global fashion retailer, known for its innovative approaches and community involvement. From its early days of offering a steam wagonette service to transport customers, to launching its online shopping platform in 1996, Macy's has always prioritized customer convenience. With a rich history of acquisitions and mergers, Macy's has expanded its reach across the United States, becoming a beloved institution in American retail. Let's dive into 50 fascinating facts about Macy's fashion journey!
Key Takeaways:
- Macy's, a historic department store, was founded in 1858 and grew through strategic acquisitions, innovations, and regional expansions. Its rich history reflects a commitment to community involvement and fashion leadership.
- From humble beginnings to becoming the world's largest fashion retailer, Macy's has evolved through mergers, rebranding efforts, and a strong online presence. Its journey showcases resilience, growth, and a dedication to customer convenience.
The Origins of Macy's
Macy's has a storied history that dates back to the mid-19th century. Let's explore how it all began and the early milestones that shaped this iconic department store.
- Founding: Rowland Hussey Macy founded Macy's in 1858 in New York City, initially as a dry goods store on the corner of 14th Street and 6th Avenue.
- Early Years: Before establishing Macy's, Rowland Hussey Macy operated four retail dry goods stores between 1843 and 1855, all of which failed. These experiences taught him valuable lessons for future success.
- First Store: The first Macy's store opened on October 28, 1858, with initial sales totaling $11.08, equivalent to approximately $390 today.
- Branding Emblem: The original branding emblem at Macy's was a rooster, which was later replaced by the red star in 1862.
Expansion and Growth
Macy's didn't stay small for long. The company quickly expanded, both in terms of physical locations and its influence in the retail world.
- Expansion: In 1902, Macy's moved its flagship store to Herald Square at 34th Street and Broadway, becoming one of the largest department stores in the world.
- Herald Square Store: The Herald Square store initially consisted of one building but expanded through new construction, eventually occupying almost the entire block bounded by Seventh Avenue on the west, Broadway on the east, 34th Street on the south, and 35th Street on the north.
- Steam Wagonette: To transport customers from 14th Street to 34th Street, Macy's offered a steam wagonette service, reflecting its commitment to customer convenience.
- National Expansion: The first branch store outside of Herald Square was opened in the Parkchester development in The Bronx on October 13, 1941.
Acquisitions and Mergers
Macy's growth was also fueled by strategic acquisitions and mergers, which helped it become a national retail powerhouse.
- Acquisitions: Over the years, Macy's acquired several local department store chains across the country, including Lasalle & Koch (Toledo, 1923), Davison-Paxon-Stokes (Atlanta, 1929), L. Bamberger & Co. (Newark, 1929), O'Connor Moffat & Company (San Francisco, 1945), and John Taylor Dry Goods Co. (Kansas City, 1947).
- Store Names: O'Connor Moffat was renamed Macy's San Francisco in 1947, later becoming Macy's California, while John Taylor was renamed Macy's Missouri-Kansas in 1949. The Toledo stores retained the Lasalle's name until 1981 and joined the Missouri-Kansas stores to become Macy's Midwest.
- Mergers and Acquisitions: In 1994, Federated Department Stores merged with R.H. Macy & Co., creating the largest department store retailer in the nation. This merger led to the formation of Macy's East, which merged with A&S/Jordan Marsh to form a $4 billion retailing division of Federated.
- Broadway Stores Acquisition: Federated acquired Broadway Stores, Inc. based in Los Angeles, CA in 1995.
Innovations and Traditions
Macy's has always been at the forefront of retail innovations and has established several beloved traditions.
- Online Presence: Macy's launched its online shopping platform, macys.com, in 1996, providing customers with the convenience of shopping from home.
- Employee Volunteer Program: Federated's employee volunteer program, Partners in Time, was founded at Rich's/Goldsmith's in 1989 as a way to give back to the community.
- Fireworks Display: Macy's 4th of July Fireworks made its spectacular debut in 1976, becoming an annual tradition in New York City.
- Fashion Innovations: In 1934, Fred Lazarus Jr. was the first to arrange clothing by size rather than style in American stores, inspired by Parisian merchandisers.
- Community Involvement: During difficult economic times, Federated and Allied stores offered credit and developed a reputation for community involvement in times of crisis.
- First Flower Show: The first Macy's Flower Show debuted as a fragrance festival at the Union Square store in San Francisco in 1946.
Regional Expansions
Macy's didn't just grow in New York; it spread its influence across the United States through various acquisitions and expansions.
- Miami Division: Miami-based Burdines became a division of Federated in 1956.
- Dayton and Memphis Acquisitions: Federated acquired Dayton, Ohio-based Rike's and Memphis-based Goldsmith's in 1959.
- Hecht's Acquisition: May Company acquired Hecht's in Washington, DC and Baltimore in 1959.
- Bullock's Acquisition: Macy's purchased Bullock's and I. Magnin from Campeau Corporation in 1988.
Corporate Milestones
Significant corporate changes and milestones have marked Macy's journey, shaping its current identity.
- Partners in Time Program: The Partners in Time employee volunteer program was founded at Rich's/Goldsmith's in 1989 to give back to the community.
- Public Company Emergence: A new public company, Federated Department Stores, Inc., emerged in February 1992 with 220 department stores in 26 states and annual sales of approximately $7 billion.
- Joseph Horne Co. Acquisition: Federated acquired the Joseph Horne Co. of Pittsburgh in December 1994, adding 10 Pennsylvania stores to its Lazarus division.
- R.H. Macy & Co. Acquisition: Federated acquired R.H. Macy & Co. in December 1994, creating the largest department store retailer in the nation.
- Macy's East Merger: Macy's East, headquartered in New York City, merged with A&S/Jordan Marsh to form a $4 billion retailing division of Federated.
- Rebranding Efforts: In 2003, Federated changed the nameplates of almost all its remaining non-Macy's stores to include the Macy's name, a rebranding effort internally dubbed Project Hyphen. For example, Seattle-based The Bon Marché became Bon-Macy's; Goldsmith's in Tennessee became Goldsmith's-Macy's; Lazarus, Burdines, and Rich's also added "-Macy's" to their name. A year later, the hyphenated names were changed to simply Macy's.
Modern Era and Online Presence
Macy's has adapted to the digital age while maintaining its status as a fashion leader.
- Hyphenated Names Removal: The hyphenated names were changed to simply Macy's in 2004, further consolidating the brand.
- Fashion Retailer Status: By 2010, Macy's, Inc. had become the world's largest fashion goods retailer and the 36th-largest retailer overall.
- Headquarters Relocation: The company was headquartered within Macy's Herald Square in New York City since 2020, previously located in Cincinnati, Ohio from 1945 until 2020.
- Corporate Lineage: Federated Department Stores traces its corporate lineage to F&R Lazarus & Company, founded in Columbus, Ohio in 1851.
- Early Mergers: In the summer of 1929, Fred Lazarus Jr., Walter N. Rothschild from Abraham & Straus, and Edward Filene from Filene's of Boston merged their stores to form Federated Department Stores.
- Bloomingdale's Addition: Bloomingdale Brothers of New York joined Federated in 1930.
- Campeau Corporation Takeover Attempt: Canadian real estate developer Robert Campeau attempted to take over Federated starting in early 1988, which Federated fought off in a high-profile battle. Macy's also submitted competitive bids of over $6 billion during this time.
- Campeau Takeover: Despite the efforts, Federated agreed to a $6.6 billion takeover by Campeau in April 1988, marking the largest merger in corporate history at that time.
- Bullock's Acquisition: Macy's paid Campeau $1.1 billion to acquire the 20-store Bullock's chain in 1988.
- Broadway Stores Acquisition: Federated bought Broadway Stores, Inc. and its California-based Emporium-Capwell, Weinstock's, and The Broadway chains in 1995. Macy's changed the nameplate of these three chains and Bullock's to Macy's or in some cases turned locations into Bloomingdale's.
Rebranding and Consolidation
Macy's has undergone several rebranding efforts to unify its identity and streamline its operations.
- Rebranding Efforts: By 2003, Federated had changed the nameplates of almost all its remaining non-Macy's stores to include the Macy's name, a rebranding effort internally dubbed Project Hyphen. This effort aimed to consolidate the brand under one nameplate.
- Hyphenated Names Removal: The hyphenated names were changed to simply Macy's in 2004, further consolidating the brand.
- Fashion Innovations: Macy's has been at the forefront of fashion innovations, including arranging clothing by size rather than style, a practice inspired by Parisian merchandisers in the 1930s.
- Community Involvement: During difficult economic times, Federated and Allied stores offered credit and developed a reputation for community involvement in times of crisis. This commitment to community has been a hallmark of Macy's throughout its history.
- First Flower Show: The first Macy's Flower Show debuted as a fragrance festival at the Union Square store in San Francisco in 1946. This event has since become an annual tradition, showcasing the latest in floral design and fragrance.
- Miami Division: Miami-based Burdines became a division of Federated in 1956. This acquisition expanded Macy's presence in the southern United States and solidified its position as a national retailer.
- Dayton and Memphis Acquisitions: Federated acquired Dayton, Ohio-based Rike's and Memphis-based Goldsmith's in 1959. These acquisitions further expanded Macy's reach across the country.
- Hecht's Acquisition: May Company acquired Hecht's in Washington, DC and Baltimore in 1959. Although this was not an acquisition by Macy's directly, it highlights the dynamic nature of the retail industry during this period.
- Bullock's Acquisition: Macy's purchased Bullock's and I. Magnin from Campeau Corporation in 1988. This acquisition marked a significant expansion for Macy's on the West Coast and solidified its position as a major player in the American retail landscape.
- Partners in Time Program: The Partners in Time employee volunteer program was founded at Rich's/Goldsmith's in 1989 to give back to the community. This program reflects Macy's commitment to corporate social responsibility and community involvement.
- Public Company Emergence: A new public company, Federated Department Stores, Inc., emerged in February 1992 with 220 department stores in 26 states and annual sales of approximately $7 billion. This marked a significant milestone in Macy's history, signaling its transition into a major public company.
- Macy's, Inc. Renaming: In 2007, Federated was renamed Macy's, Inc., an acknowledgment of the old store's venerable name and a reflection of its continued growth and consolidation under the Macy's brand.
Macy's Legacy in Fashion
Macy's has come a long way since its start in 1858. From a small dry goods store to a global fashion giant, Macy's has consistently pushed boundaries. The Herald Square flagship store, the iconic red star, and the 4th of July Fireworks are just a few highlights. Macy's has also been a pioneer in fashion innovations, like arranging clothes by size. The acquisitions and mergers over the years have expanded its reach, making it a household name. The online shopping platform, launched in 1996, shows Macy's adaptability in the digital age. Community involvement through programs like Partners in Time reflects its commitment to giving back. Macy's isn't just a store; it's a part of American culture. Its rich history and ongoing innovations ensure it remains a leader in the fashion world. Macy's legacy continues to grow, shaping the future of retail.
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