SWOT Analysis of Macy’s

Macy’s Department Stores Inc, commonly nicknamed as Macy’s is one of the largest chains of departmental stores, selling wide varieties of consumer goods in US. It was founded in 1858, at New York City and is presently headquartered at the same place. It has 805 stores operating in America. It specializes in selling clothing and footwear, ladies jewelry, accessories and cosmetics and basic electrical equipments. It employs around 167000 people from across the United States and recorded annual revenue of $24.9 billions in 2010. Its’ name is stylized by a star, which had eventually become its logo.

Macy’s strengths

Macy’s has engraved itself into the American culture with events like the annual thanksgiving day, sponsored by it. Furthermore, its name has created a strong image and reputation all over America. It is the most recognized brand and people tend to buy from Macy’s because they deem its product to be of a higher quality. Thereby, this strong blend of culture and reputation has created a widespread demand for Macy’s product, proving to be its strongest point.

Another strong point for Macy’s is its strong online position. Unlike other shopping stores, Macy’s have enjoyed the privilege of having a pre-developed internet market and store and because of this reason, it has become strong, both offline and online.

Macy’s Weaknesses

As pre-mentioned, Macy’s is an employer of a very big work force, of around 167000. Therefore, the employee turnover is the biggest expense that it has to face. Because of this expense, less money is left for reinvestment and improvement into the business or diversification of departmental stores in to more products like medicines, food items, etc.
Also, the decision of Macy, to move to a single national brand will disturb the customers, as they have relied on Macy’s regional stores for years. A shift may mean loss of potential customers.

Opportunities for Macy’s

The ‘combining into a national brand’ scheme may prove to be very effective for the company, if used efficiently. As a national store, Macy would be able to have in its possession, an exclusive merchandise of all the latest, standardized and most demanded products. It will have reliable suppliers. This will prove to be a tremendous opportunity for both Macy’s and potential customers, as both will see their ambitions getting fulfilled. This can create a good customer impact on the company.

So far, Macy has been operating in just United States. It can try out the emerging virgin markets of India and China. This could open a new era of success for Macy’s. Being well established online, and with the increase in E-commerce, its business can flourish on-net.

Threats for Macy’s

With new competitors entering the market and growing internet retailers, the company can be hurt economically. There are cut-throat competitors of Macy’s like Wall-mart. A slight increase in its recognition can cause deadly effects for Macy’s. An overall economic recession and fragile economic conditions may restrict consumers to buy comparatively high priced goods from Macy’s. They would rather prefer cheap alternatives. This can also prove to be a major threat in the near future.


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(M) SWOT analysis. Retrieved from:

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