While Kohl’s, Macy’s primary competitor, also suffered a similar faith, Kohl’s drops were slightly less adverse. While the decline in 2020 is mainly attributable to the pandemic, the company also suffered a decrease in 2019. Overall, the company has suffered due to decreasing revenues in both 20. Furthermore, it was a decrease of 46.24% from the revenues it earned in 2019. The Women’s Apparel division made the highest comparative losses with a $2.502 decrease in revenues. However, the pandemic has hit the division the hardest. This division has been the third highest-earning division with 22% contribution each year in the past. Lastly, the Women’s Apparel division was the lowest-earning division in 2020, contributing only 16.77% to total revenues. In 20, this division contributed 23% to the company’s revenues. However, it saw a decrease of 38.06% in revenues from 2018, which amounted to $2.142 billion. This division contributed to 20.10% of the company’s total revenues. In 2020, the Men’s and Kids’ division was the third-highest earner for the company. Despite the $0.322 billion decrease (or 7.92%), this division has not suffered as much as the other due to the pandemic. In 2020, however, the Home/Other division contributed to 21.59% of the total revenues. The Women’s Apparel and Men’s and Kids divisions have historically been the second largest divisions in terms of revenues.

Related: Vertically Integrated Supply Chain Business Model However, this segment suffered a decrease of 23.78% in revenues in 2020 from 2019, which amounted to $2.248 billion in revenues. This division contributed to 41.54% of the company’s total revenues. Division 2020 2019 2018 Women’s Accessories, Intimate Apparel, Shoes, Cosmetics, and Fragrances $7,206 $9,454 $9,457 Women’s Apparel $2,909 $5,411 $5,642 Men’s and Kids’ $3,486 $5,628 $5,699 Home/Other $3,745 $4,067 $4,173 Total $17,346 $24,560 $24,971įrom the above summary, it is clear that the company’s primary income source is the Women’s Accessories, Intimate Apparel, Shoes, Cosmetics, and Fragrances division. Given below is a summary of the different divisions that the company has and how they performed over the last three years. The company makes these divisions based on the type of product they sell. Macy’s generates revenues from various divisions.

Instead, it applies it to one large group of customers that have similar needs. The company also doesn’t segregate its value propositions, distribution channels, and customer relationships. This strategy comes under the mass market business model. Although the company focuses on its customers, it does not distinguish between various customer segments. Macy’s also uses a mass-market business model. These are the primary income source for the company as they allow it to earn revenues. The company has over 500 stores in the US and some international locations. Through this model, the company has used its stores to interact with its consumers directly. Macy’s has a business-to-consumer business model. However, it is still competent enough to generate a sizeable profit for the company. Over time, the company has experimented and changed this model. Macy’s business model is its primary source of success. The effects of the pandemic are also apparent on the company’s balance sheet in terms of changes.ĭespite these performances, Macy’s has an overall profitable business model.

As of 2021, Macy’s had total assets of $17.706 billion and total liabilities of $15.153 billion. Its main competitor, Kohl’s, has also suffered a drop in revenues due to the same reason.

Macy’s isn’t the only company that has suffered financially. The primary reason behind this downturn in revenues is the impact of the ongoing COVID-19 pandemic. This revenue dropped by $7.214 billion (or 29.37%) from the $24.560 billion the company generated in 2019. The company earned revenues of $17.346 billion in 2020. Macy’s primary competitor is Kohl’s, which is the second-largest department store in the US.įinancially, Macy’s has had some ups and downs over the years. Its famous Herald Square store receives visits from 20 million people each year. The company has been successful in connecting with its customers, which has built customer loyalty. Macy’s popularity comes from its quality products and focuses on customers. The company employs over 75,000 employees in its stores as of 2021. Macy’s headquarters is in New York City, but it has more than 500 stores in the US and globally as of 2021. The company, founded in 1858, is the leading department store chain in the US and has held this position for some years. Macy’s is an American department store chain that specializes in various products.

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