Why Macy’s Still Matters: How an Iconic Store Is Reimagining the Shopping Experience 

Walking into Macy’s Herald Square today feels like stepping into a familiar story—one written over centuries yet refreshed every season. The moment the revolving doors sweep you inside, the scent of new fragrances mingles with polished marble floors, festive displays, and the echo of thousands of footsteps layered over decades of holiday crowds, fashion launches, and tourist visits. Even if you’ve never been to Herald Square, every Macy’s across the country carries a small piece of that history: a mix of nostalgia and excitement that feels uniquely American.

But beneath that warm familiarity, Macy’s has been undergoing one of the most dramatic reinventions in its history. Consumers don’t always see the strategy unfolding behind the scenes, but they feel the changes—through redesigned stores, curated merchandise, immersive holiday experiences, and more intentional storytelling woven into every corner of the brand.

The world has changed. Retail has changed.
And Macy’s is working hard to change with it.

This is the story of why Macy’s still matters—and how it’s rewriting its next chapter.

A Reality Check: Store Closures, Stock Challenges, and a Changing Retail Landscape

It’s no secret that Macy’s has faced significant challenges. Beginning in 2024, the company announced a bold restructuring plan that included the closure of 150 underproductive stores over several years. News reports captured the uncertainty as employees faced layoffs and shoppers wondered if their local Macy’s would remain open. According to CNN Business (2024), Macy’s stock price also fell sharply during this period, reflecting investor concern and shifting consumer behavior.

The decision, however, was strategic—not a sign that Macy’s was disappearing. In its 2025 corporate announcement, Macy’s confirmed that it would shutter 66 locations as part of its Bold New Chapter strategy, explaining that the plan would help the company refocus on the 350 “go-forward” stores performing strongly (Macy’s, Inc., 2025). Instead of spreading resources thinly across struggling locations, Macy’s is channeling investment into the stores consumers are still choosing.

And consumers are choosing Macy’s.
In fact, Macy’s remains the largest department store retailer in the United States, generating more than $24 billion in annual sales and outperforming all competitors (National Retail Federation, 2024).

This isn’t a company fading away.
It’s a company trimming excess so the healthiest parts of the brand can thrive.

Herald Square: Where the Macy’s Magic Lives

If there is any store that captures why Macy’s still holds cultural power, it’s the Herald Square flagship in New York City. More than a retail space, it functions as a tourist destination, local hangout, holiday tradition, event venue, fashion showcase, and architectural landmark.

Walking its floors is like navigating a mini-city. Entire levels are devoted to beauty and fragrance. Others feature contemporary fashion, designer pop-ups, luxury handbags, home goods, cafés, furniture galleries, and customization stations. Digital signage stands beside century-old escalators. Influencers film videos on one floor while families shop for holiday ornaments on another.

The store represents everything department stores once were—and everything Macy’s hopes they can still become. Even today, tourists build their New York itineraries around a visit to Macy’s. Couples get engaged there. Families return for holiday photos. Generations meet under the iconic red star.

Herald Square isn’t just a store; it is the emotional center of the Macy’s brand. And Macy’s knows it. This flagship is the model for how Macy’s wants its top stores to look, feel, and function as part of its reinvention.

Macy’s as an Experience: The Modern Consumer Journey

Today’s consumers don’t just want to shop.
They want to experience something.

Macy’s has leaned into that idea more than any other traditional department store. Whether it’s seasonal installations, exclusive pop-up vendors, celebrity appearances, runway shows, or holiday markets, Macy’s understands that emotional engagement drives foot traffic.

Nowhere is this clearer than the beloved Macy’s Thanksgiving Day Parade.

Experiential Elements That Set Macy’s Apart

• Seasonal installations that transform the store: From spring floral displays to winter wonderlands, Macy’s constantly refreshes its atmosphere to keep visits exciting.

• Exclusive pop-up vendors and artisan markets: Limited-time booths give shoppers access to unique products they can’t find anywhere else.

• Celebrity appearances and meet-and-greets: Designers, performers, and influencers frequently host events that draw crowds and create buzz.

• Runway shows and style demonstrations: Fashion moments unfold right inside the store, letting customers experience trends before buying.\

• Interactive workshops and in-store classes: Beauty tutorials, cooking demos, and craft events encourage shoppers to linger and participate.

• Holiday magic throughout the year: Window displays, Santa meet-ups, themed décor, and festive markets make Macy’s a destination during every major season.

A Parade That Defines a Nation

The Macy’s Thanksgiving Day Parade is one of the most cherished holiday traditions in the United States. More than 20 million viewers watch each year, and millions more line the streets of Manhattan to see the iconic balloons drifting between skyscrapers. This single event does more to solidify Macy’s identity than any marketing campaign could.

The parade is joy. It is nostalgia. It is American tradition wrapped in helium and glitter.

It’s part of why people still feel connected to Macy’s—even if they haven’t stepped into a store in years.

Holiday Markets & Festive Vendor Pop-Ups

Beyond the parade, Macy’s hosts entire holiday shopping environments—especially in New York. The NYC Holiday Market, featured on Macy’s website, turns the store into a festive hub complete with specialty vendors, handcrafted gifts, artisanal foods, photo installations, and rotating makers’ booths (Macy’s, 2024).

These markets create a sense of wonder and discovery. Shoppers wander with hot cocoa, stumble upon unique handmade gifts, take photos under twinkling lights, and feel part of something celebratory rather than transactional.

This is what retail scholars call reattainment, and Macy’s has mastered it.

Behind the Curtains: Macy’s Organizational Strength

While customers experience magic on the selling floor, Macy’s internal structure plays a huge role in shaping what appears on shelves.

Unlike general merchandisers or mass retailers, Macy’s maintains a departmentalized buying system. Each category—women’s dresses, men’s suits, beauty, shoes, jewelry, home—is managed by a specialized buying team. These buyers are fashion forecasters, business negotiators, analysts, and trend translators all at once. They determine which collections arrive each season, what trends the store will prioritize, and how merchandise will differ across geographic regions.

This organizational structure supports Macy’s ability to blend national name brands with exclusive private labels. Shoppers find well-known names like Ralph Lauren, Clinique, Estee Lauder, and Levi’s, but they also see labels found only at Macy’s—brands such as INC International Concepts, Bar III, Charter Club, and Alfani.

These exclusive brands build identity, increase profitability, and offer consumers something unique—an essential strategy in a world where Amazon can sell almost anything.

A Smart Pivot: The Rise of Macy’s Backstage

Some shoppers visit Macy’s for luxury. Others visit for deals. Macy’s Backstage was created for the latter. These off-price, treasure-hunt style departments cater to bargain-minded consumers looking for constantly rotating merchandise at steep discounts. The appeal is simple: new finds each week, name-brand deals, and the thrill of the hunt.

Macy’s Backstage expands Macy’s reach into a younger, value-focused demographic while allowing the company to clear excess inventory efficiently. This keeps the main store brand strong while still offering variety and competitive price points.

Technology at Work: The “Phygital” Shopping Experience

One of Macy’s greatest strengths is its ability to blend the physical and digital shopping experience—something the industry now calls phygital retail.

Services like mobile “Scan & Pay,” digital receipts, interactive kiosks, BOPIS (Buy Online, Pick Up in Store), curbside pickup, and same-day delivery partnerships show that Macy’s understands modern convenience. RFID-enabled inventory tracking and smart fitting-room assistance enhance the in-store journey while improving accuracy and efficiency.

In a landscape where consumers seamlessly shift from mobile browsing to in-person shopping, Macy’s omnichannel ecosystem is a crucial competitive edge.

Key Features of Macy’s Phygital Retail Experience

·       Scan & Pay convenience: Shoppers can scan items with the Macy’s app and check out instantly—no waiting in lines.

·       Real-time inventory visibility: RFID tags help customers and associates locate products quickly across multiple floors.

·       Unified shopping carts: Items saved online appear in-app and in-store, creating a seamless browsing experience.

·       Smart fitting rooms: Buttons for size changes and associate assistance reduce friction and improve service speed.

·       BOPIS and curbside pickup: Orders placed online are ready within hours, blending digital selection with in-store pickup convenience.

·       Digital receipts and easy returns: Paperless receipts simplify exchanges and returns across all Macy’s locations.

·       Interactive kiosks: In-store kiosks allow customers to search for sizes, discover related products, and ship items directly home.

Loyalty That Rewards More Than Points

Macy’s Star Rewards program continues to be a key driver of customer loyalty. The four-tier system offers perks that feel meaningful—free shipping, birthday surprises, exclusive bonus days, and early access to major sales. For shoppers, it’s an easy reason to stay connected. For Macy’s, it’s a vital source of customer insight and personalization.

The Heart of Macy’s: Tradition, Emotion, and Reinvention

So why does Macy’s still matter today?

Because Macy’s is more than a retailer.
It is a memory-maker. A holiday tradition. A part of the American cultural fabric.

Consumers don’t just go to Macy’s to buy a sweater—they go for the feeling of being part of something larger. For the parade that accompanies their Thanksgiving morning. For the holiday windows that spark childhood wonder. For the wedding registry that marks a milestone. For the first designer handbag someone saves up to buy.

And now, as Macy’s reinvents its business model, consumers are seeing new reasons to return: updated stores, curated brands, tech-enabled convenience, and experiences that can’t be found online.

Macy’s is proving that department stores aren’t dying—they’re evolving.

References 

CNN Business. (2024). Macy’s store closings and retail outlook. https://www.cnn.com/2024/02/27/business/macys-store-closings-department-stores-outlook

Macy’s, Inc. (2024). Company overview. https://www.macysinc.com/

Macy’s, Inc. (2025). Planned store closures announcement. https://www.macysinc.com/newsroom/news/news-details/2025/Macys-Inc.-Confirms-Planned-Macys-Store-Closures/default.aspx

Macy’s, Inc. (2025). Investor snapshot. https://www.macysinc.com/overview/default.aspx

National Retail Federation. (2024). Top U.S. department stores by revenue. https://nrf.com/

Statista. (2021). U.S. retail sales of selected department stores. https://www.statista.com/statistics/197857/2010-sales-of-department-stores-in-the-us/

Stone, E., & Farnan, S. A. (2022). The dynamics of fashion (6th ed.). Bloomsbury.