Mission Statement, Vision, & Core Values (2024) of Macy's, Inc. (M).

An Overview of Macy's, Inc. (M)

General Summary of Macy's, Inc. (M)

Macy's, Inc. is a well-established retailer in the United States, known for its department stores offering a wide range of products including apparel, home goods, and cosmetics. The company was founded in 1858 by Rowland Hussey Macy in New York City. Over the years, Macy's has expanded significantly, acquiring several other retail chains and establishing itself as a leading player in the retail industry.

As of 2024, Macy's operates approximately 725 stores across the U.S. and also has a strong online presence. The company provides a diverse selection of products, including women's, men's, and children's apparel, cosmetics, home furnishings, and accessories. In 2024, Macy's reported net sales of $9.78 billion, a decrease from $10.11 billion in 2023, reflecting ongoing challenges in the retail environment.

Company's Financial Performance in the Latest Financial Reports

In the second quarter of 2024, Macy's reported net sales of $4.94 billion, down from $5.13 billion in the same quarter of 2023. The company experienced a comparable sales decrease of 4.0% year-over-year. Key financial highlights include:

Macy's reported an operating income of $222 million, reflecting a significant improvement compared to the previous year. The gross margin increased by 240 basis points to 40.5%, primarily due to reduced discounting and improved inventory management. Additionally, the company has managed to decrease its selling, general, and administrative expenses to $1.97 billion, down from $1.98 billion in the previous year.

Introduction to Macy's as a Leader in the Industry

Macy's, Inc. stands as a prominent leader in the retail industry, especially within the department store segment. The company's strategic initiatives, including enhancing its omnichannel capabilities and expanding its product offerings, have positioned it favorably in a competitive market. Macy's continues to innovate by introducing new brands and improving customer experiences, particularly in its First 50 locations which have shown robust sales performance amid challenging economic conditions.

To understand more about why Macy's remains successful, further exploration of its operational strategies and market positioning is encouraged.

Mission Statement of Macy's, Inc. (M)

Company's Mission Statement

Macy's, Inc. (M) articulates its mission statement as a commitment to delivering quality products and exceptional service to customers while enhancing their shopping experiences. This mission guides the company's long-term goals and strategic initiatives, focusing on customer satisfaction and operational excellence.

Core Component 1: Customer Commitment

Macy's emphasizes a strong commitment to customer satisfaction in its mission. The company aims to provide a broad selection of merchandise that meets diverse customer needs. In 2024, Macy's reported net sales of $9.783 billion, a decrease of 3.3% from $10.112 billion in 2023, indicating the challenges faced in maintaining customer engagement amid evolving market conditions.

Core Component 2: Quality Products

Macy's mission includes a focus on offering high-quality products across various categories, including apparel, home goods, and cosmetics. In the second quarter of 2024, the gross margin was reported at 40.5%, up from 38.1% in the second quarter of 2023, reflecting improvements in product quality and inventory management. Additionally, the company has introduced elevated product rollouts across top markets, further enhancing its product offerings.

Core Component 3: Operational Excellence

The mission statement of Macy's highlights operational excellence as a key component. The company has implemented various initiatives to streamline operations and improve efficiency. For instance, selling, general, and administrative (SG&A) expenses decreased to $3.884 billion, or 38.5% of total revenue, in 2024, compared to $3.930 billion, or 37.6% in 2023. This focus on operational efficiency is aimed at maximizing profitability while ensuring that customer-facing investments are maintained.

Vision Statement of Macy's, Inc. (M)

Vision Statement Overview

Macy's, Inc. (M) aims to be the premier omnichannel retailer, providing exceptional shopping experiences through a blend of digital and physical platforms. The vision emphasizes customer-centricity, innovation, and sustainability as key pillars driving growth and engagement.

Customer-Centric Experience

At the core of Macy's vision is the commitment to enhancing the customer experience. In 2024, net sales reached $9.783 billion, a decrease of 3.3% from 2023, reflecting ongoing macroeconomic challenges. However, the company has focused on improving customer engagement through personalized shopping experiences and loyalty programs.

Innovation in Retail

Macy's vision includes leveraging technology for operational efficiency and enhanced customer interactions. The company has invested in digital transformation, leading to a 20% increase in online sales through its e-commerce platforms. In 2024, Macy's Media Network also generated $71 million in revenue, an increase of 20% year-over-year.

Sustainability Initiatives

Sustainability is a cornerstone of Macy's vision, driving efforts to reduce environmental impact. In 2024, the company reported a 25% reduction in greenhouse gas emissions compared to 2020 levels. Macy's also aims to source 100% of its cotton from sustainable sources by 2025.

Community Engagement

Macy's vision also incorporates strong community engagement, focusing on diversity, equity, and inclusion. In 2024, the company increased its community investment to $45 million, with a focus on education and workforce development initiatives.

Core Values of Macy's, Inc. (M)

Core Value: Customer Commitment

Macy's, Inc. emphasizes a strong commitment to its customers, ensuring that their needs are at the forefront of all operations. This commitment is evident through various initiatives aimed at enhancing customer experience.

• In 2024, Macy's introduced the "First 50" locations strategy, focusing on improving merchandising and customer interaction, which resulted in a 0.8% increase in comparable sales at these locations.
• The company has invested in technology to streamline the shopping experience, including faster online delivery and enhanced product availability, which contributed to improved customer satisfaction.

Core Value: Innovation

Innovation is a cornerstone of Macy's operational strategy, driving improvements in both product offerings and customer engagement.

• Macy's Media Network, an in-house advertising platform, generated $34 million in revenue in Q2 2024, reflecting a 13% increase from the previous year, demonstrating the company's innovative approach to marketing.
• The company has also allocated resources towards digital and technology investments, with capital expenditures of $432 million in the first half of 2024, aimed at enhancing omni-channel capabilities.

Core Value: Sustainability

Sustainability initiatives at Macy's focus on responsible sourcing and reducing environmental impact.

• Macy's has made strides in reducing waste and promoting sustainable products, aligning with broader industry trends towards eco-friendly practices.
• As part of its sustainability commitment, the company has increased its focus on sourcing products from suppliers that adhere to ethical practices, contributing to a more sustainable supply chain.

Core Value: Diversity and Inclusion

Diversity and inclusion are integral to Macy's corporate culture, influencing hiring practices and community engagement.

• Macy's has implemented various programs to promote diversity within its workforce, aiming for greater representation across all levels of the organization.
• The company actively supports community initiatives that foster inclusion and equality, reflecting its commitment to social responsibility.

Core Value: Community Engagement

Macy's is dedicated to engaging with the communities it serves, leveraging its resources to support local initiatives.

• The company contributes to various charitable organizations, with a focus on education and empowerment programs.
• In 2024, Macy's continued its partnership with local organizations to promote community well-being, showcasing its commitment to being a responsible corporate citizen.