Brooks Brothers, Kiehl’s, and until recently, Lord & Taylor are the only retail companies in the United States older than Macy’s. However, Lord & Taylor went bankrupt in 2020, making Macy’s the country’s third oldest retailer.
Throughout ownership changes, brand acquisitions, and opening and closing stores in the company’s 163-year history, Macy’s purpose has always been the same.
The most recent version of the company’s mission statement is ‘to create a brighter future with bold representations we can realize the full potential of every one of us.’
Although it is seemingly future-oriented, the statement also contains references to the company’s past and its role as one of America’s community leaders and fashion pioneers. These messages appeal to both the company’s stakeholders and its customers.
This article will examine Macy’s mission statement to see how it reflects the company culture and values.
|Founded||October 28, 1858|
|Headquarters||New York City|
|Market cap||5.48 billion|
Macy’s Mission Statement: In-Depth Analysis
The current iteration of Macy’s came into existence in 2007 when Federated Department Stores changed its name to Macy’s Inc. The histories of these two companies are closely connected since Macy’s was one of the founding members of the Federated Department Stores in the early 1930s.
The introduction of novel retail practices, innovative advertising campaigns, and broad community reach have always been intrinsic elements of Macy’s culture. Bloomingdale’s and Bluemercury brands also operate under the governance of Macy’s Inc.
Even though their mission statements are slightly different from Macy’s, they still reflect the same values. So, for instance, Bloomingdale’s purpose is to: ‘guide and inspire customers, ensuring style is a source of creative energy in their lives.’
Bluemercury’s goal is ‘to be the friendly neighborhood beauty store where you can get expert, honest beauty advice.’ Despite having different target groups, both of these mission statements align with the concepts Macy’s presents as its purpose. Each statement contains the following messages.
Continuing the Tradition of Trendsetters
Macy’s and Bloomingdale’s are some of the largest and oldest chain department stores in the world. Bloomingdale’s offers luxury goods, such as designer clothes or kitchen appliances, while Macy’s is oriented towards more affordable products aimed at mostly business clientele.
Macy’s store features these product categories:
- Clothes (men, women, kids, baby)
- Accessories and handbags
Bloomingdale’s products are organized in the same departments as Macy’s, with the only difference between the chain department stores being the brands they offer. For instance, you can’t find the Alexander McQueen brand in Macy’s stores or the Adidas brand in a Bloomingdale store.
Besides these differences, Macy’s and Bloomingdale share the same purpose to inspire their customers and help them reach their full potential through style and elegance. Their current position in the US retail market suggests that both brands are going to remain trendsetters in the foreseeable future.
Entertaining Shopping Experience
Macy’s iconic store in New York’s Herald Square opened in 1901, and it is currently the largest department store in the world. It was recognized as National Historic Landmark in 1978. Moreover, Bloomingdale’s stores are an integral part of New York’s landscape.
Shopping at these locations is a part of Bloomingdale’s and Macy’s appeal. Macy’s Inc. runs one of the largest e-commerce platforms in the United States that serves as a support to its nationwide network of 726 stores.
Moreover, the company announced plans to launch a program that would allow e-store owners to distribute their products at macy’s.com and bloomingdale’s.com. These plans should help the company position itself better against competitors like Shopify and other e-commerce platforms.
The quality of shopping experience and customer service sets Macy’s apart from Walmart and Kohl’s, that challenge the company’s position in retail and department store markets.
Transforming the Future of Commerce
Macy’s is the most profitable department store chain in the US, with 18.097 billion in revenue in 2021 and 5.3 billion in the first quarter of 2022. 33% of the company’s net sales come from digital sales, while the company’s sales went up by 0.4% from the same period the year before.
Moreover, Macy’s mobile app has 7.4 million users, and over 50% of the company’s online sales were made through smartphones. Hence, the company’s goal to provide a ‘seamless shopping experience’ extends beyond its brick-and-mortar stores that still generate the bulk of its revenue.
Macy’s promise of creating a better future indicates a revision of its retail practices that involved the usage of non-recyclable materials for packaging or reducing carbon emissions during the delivery process.
In addition, the retailer offers a broad spectrum of products made from sustainable materials and without animal testing.
Macy’s Vision Statement
The pandemic has forced Macy’s to review its vision and adapt to the new market conditions.
Consequently, the company updated its Polaris Strategy declaring the modernization of its supply chains, increased reliance on data analytics, and improvement of the online shopping experience its top priorities.
A couple of years later, these goals remain the foundations of the company’s vision alongside the company’s environmental and social responsibility endeavors.
These goals translate into company-wide policies that involve a Restricted Substance List, product material guidelines, and ethnic diversity thresholds. The introduction of these policies has enabled Macy’s to layout the groundwork for the direction the company wants to take going forward.
Upholding the company’s traditions like the Macy’s Thanksgiving Day parade and Fourth of July Fireworks Spectacular should also be viewed as a part of its vision. Although Macy’s vision statement isn’t clearly outlined in a tagline, the company’s current efforts reveal its plans for the future.
Improving Customer Service
The introduction of the revised Customer Bill of Rights to every Macy’s and Bloomingdale’s store in 2019 serves as an example of the organization’s attempts to combat profiling and discrimination on all levels.
The CBOR contributes to the company’s goal of providing an entertaining shopping experience to its customers in-store and online. All employees undergo training that covers the best customer relation and conflict resolution practices.
Macy’s intends to continue modernizing its stores by introducing new technologies that allow customers to view their products in VR or AR.
Diversification of the Workforce
The company started the MOSAIC program to assist managers and directors of African-American, Asian, Native American, or Hispanic origin in acquiring the skills to reach senior director or higher positions.
Macy’s goal is to create a more inclusive work environment by 2025 by creating gender and ethnicity-balanced workforce. These diversification efforts extend to the company’s promotional materials that strive to represent the full range of Macy’s clients.
Moreover, the company intends to continue hiring marketing professionals and content producers from diverse backgrounds. Macy’s wants to invest over $35 million in the Guild Education project directed to all its employees.
Establishing Connections with Underrepresented Suppliers
In the last ten years, Macy’s The Workshop program has assisted over a hundred businesses in creating reliable and comprehensive supply chains.
The company also runs the Supplier Diversity Program that allows businesses owned by veterans, members of the LGBTQ community, or women to integrate into Macy’s business structure. The program’s purpose is to increase the diversity of Macy’s suppliers by 5% per year.
The responsible sourcing guidelines require businesses to undergo screening, training and audits to ensure their dedication to upholding standards of ethical treatment of workers. All suppliers must comply with Macy’s code of conduct to remain a part of the company’s supply chain.
Achieving Social and Environmental Sustainability
Human Rights Campaign, National Urban League, and the Hispanic Federation are a few among countless beneficiaries of Macy’s donations. The company’s grants support social initiatives dealing with racial injustice, human rights violations, or unequal economic opportunities.
Macy’s supports designers through programs like Icons of Style and promotes small fashion brands by giving them access to its vast client base.
The battle against climate change is an important segment of the company’s agenda, as it invests significant resources into energy-efficient automation and information systems.
Over a hundred Macy’s stores are equipped with solar panels, while 37 locations have electric car chargers, and the company intends to increase these numbers in the next few years.
Macy’s Core Values
The recent revision of Macy’s core values hasn’t significantly changed its corporate culture. Throughout its history, the company fostered a culture of mutual respect, acceptance, and support for its employees and communities.
The novelty this revision brought was a list of behaviors that serve as a code of conduct for its employees. These behaviors are:
- Commit to win – Encourages employees to take a proactive and customer-based approach towards their work.
- Own your role – Everyone should contribute to the company’s success by understating their role within their team.
- Build trust – Establishing long-term collaboration based on honesty and trust.
- Getting better every day – Overcoming challenges and learning from previous experiences are the basis for professional growth.
Let’s go through Macy’s core values and see how they compare to the company’s set of behaviors.
Respect is the starting point for building trust between colleagues or establishing lasting relationships with clients, stakeholders, or suppliers. Macy’s conducts all its business ventures in the spirit of fairness and expects all its employees to do the same.
In 1939, Macy’s introduced the ‘Pay When You Can’ policy to support its customers during crises. This early example of the retailer’s dedication to the local communities shows that giving back has always been a part of the company’s culture.
Macy’s treats all its employees, partners, and customers equally. It acknowledges and accepts their differences with the aim of creating a sense of connectedness within the communities it serves.
The retailer fosters the speak-up culture and encourages its clients and employees to provide feedback, express their opinions, and make suggestions. Macy’s strives to maintain high ethical standards.
- The mission statement grows out of the company’s core values
- Technology is fundamental for Macy’s long-term plans
- The company’s relationship with its customers is the dominant idea in Macy’s mission statement
- Continuing traditions Macy’s is famous for is one of the brand’s priorities
Other Companies with Similar Values
Platforms like Touch of Modern challenge old brands by forcing them to compete in the online retail market. Macy’s digital sales still account for a third of its total sales, which shows that the company still relies on its brick-and-mortar stores.
Brands like Nordstrom, JCPenny, and Kohl’s are some of the company’s biggest competitors. So, let’s take a brief look at their missions and core values.
- Nordstrom – The retailer’s purpose and key focus is to provide excellent service to its customers, while its vision is to remain present in their lives.
- JCPenny – One of the oldest department stores in the United States has made it its mission to adjust to the needs of consumers in the 21st century by providing them with an engaging shopping experience.
- Kohl’s – The company’s purpose is built around family values and dedication to its customers while maintaining high ethical standards.
Frequently Asked Questions
Question: Is Macy’s in Decline?
Answer: The statistics don’t show any sign of the decline as the chain department store continues to generate higher revenues than its competitors. Still, the general decline in department store sales could hurt the company in the long run.
Question: How Many Employees Does Macy’s Have?
Answer: The company has around 90,000 employees, nearly 30,000 less than in 2020.
Question: What is Macy’s Target Audience?
Answer: The company’s target audience is young women with a middle-class income.
Question: What is Macy’s Backstage?
Answer: Macy’s Backstage is the subsidiary of Macy’s Inc. It functions as both an outlet and a conventional department store.
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