Macy's

How Macy’s took Over Retail

Several years ago many well regarded department store names disappeared from the nation’s landscape. Bought up by now retail giant Macy’s, gone are the name of many great retail giants such as, Marshal Fields, May Co. and even perhaps lesser known out of the state of Indiana L.S. Ayres. This is due to the fact that Macy’s went on something of a buying spree and acquired many department stores and renaming them under its own name.

This is due to Macy’s CEO Terry Lundgren former chairman and CEO of Neiman Marcus, who was offered the job by Federated Department stores to help turn the company around, in 1993 Lundgren declined, after Federated Department Stores bought Macy’s in 1994, Lundgren became the president in 1997 and then the CEO in 2003.Today, Lundgren has built Macy’s Inc. into one of the biggest and strongest department stores in the country. The retail giant accounts for a third or more of the business for the brands that Macy’s is associated with. However, if you rewind just seven years, Macy’s wasn’t even big enough to advertise during its own Thanksgiving Day Parade.

Upon coming to Macy’s Lundgren set forth a buying frenzy and acquired and changed 400 department stores to the Macy’s brand, going from 250 stores in 2004 to 800 in a two-year time frame. Wiping out many well-known or locally beloved stores, creating a retail giant. This acquisition on Lundgren’s part was a great business move for his company, creating a retail powerhouse never seen before, however wiping out the competition in my opinion may hurt the Macy’s brand in the long run. Losing many beloved stores is one thing but losing the quality of merchandise that costumer came to expect and rely on is another. As a consumer since the consolidation by Federated of stores under the Macy’s umbrella I have found many things in the stores themselves have changed and not for the better. Lack of customer service, Federated did away with commissioned sales people...