Macy Inc. Finacial Assessment
By: Frankie Laster
April 22, 2013
ACG 2021
Company History
Macy’s, Inc. was founded in 1929 formerly known as Federated Department Stores, Inc. and wasn’t renamed until June 2007. The company was born through a combination of retailers such as Abraham & Straus of Brooklyn, Filene’s of Boston, F&R Lazarus & Co. of Columbus, OH, and Bloomingdale’s of New York. Each retailer had already gained a prominent presence with a rich history of its own. So in joining together each retailer maintained their separate identities while linking their financial interests and savvy business expertise to develop the revolutionary new company in American retail. Even through the Great Depression and World War II it was apparent that Federated would continue to emerge. By implementing innovative retail firsts such as the “pay when you can” credit policy and the idea to strategically arrange merchandise by size rather than color or price proved the company’s resilience. In 1939 one of Federated Founders Fred Lazarus, proposed a brazen solution when he suggested to President Roosevelt that Thanksgiving be anchored to the fourth Thursday in November rather than fall on the last day of November. This would extend holiday shopping and avoid pushing retailers from the black to the red since there would be fewer shopping days between the Thanksgiving and Christmas shopping season. Making the following day (Black Friday) the most profitable for federated. President Roosevelt supported the proposition, so within the next two years the holiday of Thanksgiving was moved to be celebrated on the Fourth Thursday in November. Since its founding Federated operated as a holding company until Fred Lazarus suggested a bold transition to becoming an operating company to be conducive to the growth and expansive opportunities that lay ahead. After some resistance from the director, Federated was reconstituted as an operating company in 1945, with Fred Lazarus as its president and Cincinnati as its
April 22, 2013
ACG 2021
Company History
Macy’s, Inc. was founded in 1929 formerly known as Federated Department Stores, Inc. and wasn’t renamed until June 2007. The company was born through a combination of retailers such as Abraham & Straus of Brooklyn, Filene’s of Boston, F&R Lazarus & Co. of Columbus, OH, and Bloomingdale’s of New York. Each retailer had already gained a prominent presence with a rich history of its own. So in joining together each retailer maintained their separate identities while linking their financial interests and savvy business expertise to develop the revolutionary new company in American retail. Even through the Great Depression and World War II it was apparent that Federated would continue to emerge. By implementing innovative retail firsts such as the “pay when you can” credit policy and the idea to strategically arrange merchandise by size rather than color or price proved the company’s resilience. In 1939 one of Federated Founders Fred Lazarus, proposed a brazen solution when he suggested to President Roosevelt that Thanksgiving be anchored to the fourth Thursday in November rather than fall on the last day of November. This would extend holiday shopping and avoid pushing retailers from the black to the red since there would be fewer shopping days between the Thanksgiving and Christmas shopping season. Making the following day (Black Friday) the most profitable for federated. President Roosevelt supported the proposition, so within the next two years the holiday of Thanksgiving was moved to be celebrated on the Fourth Thursday in November. Since its founding Federated operated as a holding company until Fred Lazarus suggested a bold transition to becoming an operating company to be conducive to the growth and expansive opportunities that lay ahead. After some resistance from the director, Federated was reconstituted as an operating company in 1945, with Fred Lazarus as its president and Cincinnati as its