BrandSensitize | Strategic Brand Evaluation & Marketing Advisory

Retail Resilience: How Macy's Navigated Industry Challenges

Macy’s turns every shopping trip into a memorable and magical experience that customers treasure. Macy’s crafts a distinctive customer journey by combining iconic traditions with innovative solutions.

  • Keith Credendino – current CIO/CTO, leading digital transformation efforts
  • Sharon Otterman – Chief Marketing Officer, overseeing brand strategy and customer engagement

Financial Performance

  • Net sales declined 3.5% to $22.3 billion for FY2024, with net income of $582M.
  • Net sales FY2023: $23.1B, down from $24.40B in FY2022, a clear decline.
  • Q2 2025: Macy’s reported net sales of $4.8B, exceeding the forecast.
  • Total sales declined 2.5% YoY, but comparable sales increased:
    • +0.8% on an owned-merchandise basis
    • +1.9% including O+L+M sales (owned, licensed, marketplace)

As of Feb 1, 2025, Macy’s employed about 94,189 workers (full-time and part-time) in the U.S.

Macy’s performance highlights the benefits of being a multi-brand, multi-category, omni-channel retailer.

Challenges and Market Pressure

  • Trump’s tariffs on Chinese imports hit hard; 20% of products are sourced from China.
  • Competition: Amazon, fast-fashion retailers, and specialty online brands.
  • Consumer shift: More demand for convenient online shopping and specialized retailers, challenging traditional department stores.

Macy’s Brand Philosophy

At its core, Macy’s philosophy focuses on creating “magic” through inclusive, aspirational shopping, combining heritage events like the Thanksgiving Day Parade with modern digital innovation.

The brand’s customer-centric ethos emphasizes:

  • Wonder
  • Accessibility
  • Personalization

These principles drive focus on community impact, sustainability, and seamless experiences across stores, apps, and events.

Macy’s enlists CFDA star Christian Siriano to lead its fall collection, blending timeless glamour with runway-ready edge and reaffirming Macy’s role as an inclusive style authority.

Customer Experience

  • Personalized guidance: Knowledgeable associates offering expert styling and in-store support.
  • Bold New Chapter (2024–26 turnaround plan):
    • Closing underperforming stores
    • Reinvesting in 350 “goforward” locations
    • Targeting low-single-digit sales growth
  • Omnichannel strategies:
    • Buy-online-pick-up-in-store (BOPIS)
    • Same-day delivery
    • Revamped app → Digital now generates over 35% of sales
  • AI-powered personalization (via Google Cloud, Microsoft, Salesforce):
    • Real-time offers
    • Virtual fitting rooms
    • Predictive inventory management
  • Star Rewards Loyalty: 30M+ members receive tiered perks, boosting higher spending and retention.

Iconic Differentiators

  • Thanksgiving Day Parade
  • “100 Days to Christmas” gift + Santa tour → solidify Macy’s as the holiday destination
  • Designer Collaborations: Christian Siriano Fall Collection
  • Luxury Expansion: Bloomingdale’s and Bluemercury+45 stores by 2026, targeting premium margins

Bold New Chapter Strategy

Macy’s is implementing its “Bold New Chapter” strategy, planning to close 150 underperforming stores by 2026.

This restructuring brings challenges:

  • Workforce changes
  • Supply chain issues
  • Maintaining customer loyalty during transition

Tech Ecosystem Driving Macy’s

BrandSensitizeresearch and public data indicate that Macy’s relies on a proven tech ecosystem to support customer experience:

  • Adobe – Digital marketing, CMS
  • Google Cloud, Microsoft, Salesforce – Personalization, predictive inventory, customer engagement
  • Accenture, Deloitte, Infosys, Zensar, Cognizant – Strategic IT and delivery partners (Bangalore & Chennai hubs)

These partnerships enhance personalization speed, inventory accuracy, and smooth customer experiences.

The Question

What has your experience been with Macy’s?
Which aspect do you find most impressive: the magic of their events, personalized styling, or seamless digital support?

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Keith Nicks is EVP and Chief Digital & Commercial Officer for Ahold Delhaize USA, overseeing
omnichannel marketing, retail media, and e-commerce for U.S. brands. Tim Bork is the Chief Commercial
Officer for Ahold Delhaize Europe & Indonesia, focusing on local brands and responsible for growth,
including marketing and customer experience.
With nearly €96 billion in projected 2025 revenue, Ahold Delhaize ranks among the top 10 global
retailers, operating over 6,700 stores across multiple formats, including Albert Heijn, Delhaize, Food Lion,
Giant, Hannaford, and Stop & Shop.
6,700 stores powered by one procurement platform – a scale that makes others jealous.
For customers, Ahold isn’t just a grocery retailer; it’s a trusted lifestyle partner that combines the
intimacy of local shopping with the innovation and value of global retail leadership.
Ahold’s brands, such as Albert Heijn, Stop & Shop, and Giant, represent 37 years of average customer
relationships—customers don’t just shop there; they grow up with these brands, creating emotional
connections that transcend transactions.
After gaining thirty million loyalty members, Ahold demonstrated that personalization consistently
outperforms promotion.
BrandSensitize™ research shows that Ahold Delhaize operates with a decentralized marketing and brand
building approach, where marketing functions are embedded within:

  • Brand-specific leadership (each local brand has its own marketing teams.
  • Regional commercial officers who oversee marketing alongside broader commercial
    responsibilities.
  • Digital and omnichannel specialists who handle modern marketing channels.
    Ahold Delhaize’s Brand Building Initiatives:
    Sustainability campaign: €50M investment reached 10M consumers, delivering a 20% boost in
    sustainable product sales and generating €400M in revenue.
    Digital Marketing: €150M digital budget achieved 25% higher engagement, 2.6% click-through rates (vs
    1.9% industry standard), and built 500K+ social media following.
    Loyalty Program: 30M members across brands with 85% customer penetration, driving 75% of total sales
    and contributing €1B annually—10% better retention than competitors.

Strategic Brand Partnerships: 100+ collaborative campaigns with CPG brands, including Coca-Cola,
generated €600M in additional revenue through joint promotions.
Omnichannel Investment: A $1 billion price investment initiative, combined with AI-powered
personalization, aims to achieve an 80% loyalty sales penetration by 2028.
Strategic marketing drives measurable business results—from sustainability messaging to digital-first
loyalty programs, Ahold Delhaize demonstrates that well-executed brand-building campaigns deliver
both customer engagement and bottom-line growth on a global scale.
Ahold Delhaize’s Strategic Technology Partnerships:

  • W23 Global VC Fund: $125M investment with Tesco, Woolworths & others backing AI startups
    like Harmonya & Protex AI
  • Zycus Partnership: Source-to-Pay suite powering procurement across 6,700+ stores globally
  • Hanshow Technology: Electronic shelf labels + innovation labs across all European locations.
  • Inmar Intelligence: $141M in customer savings delivered through personalized digital coupons.
  • DoorDash Collaboration: Tripled order volumes through enhanced last-mile delivery integration.
  • Internal AI Innovation: MaxiGPT, LionGPT & Albot assistants deployed across the Serbian,
    Belgian, and Czech markets.
  • New Tech Studio: AD/01 in Bucharest targeting 250+ tech talents for digital acceleration.
    Zycus has licensed its comprehensive Source-to-Pay suite to Ahold Delhaize, including eSourcing,
    Contract Lifecycle Management (CLM), and Supplier Management platforms.
    TCS’s relationship with Ahold Delhaize marks a mature, strategic partnership focused on digital
    transformation and supply chain technology.
    Wipro partnered with Capgemini as one of the most significant retail transformation initiatives in the
    world at Ahold USA.
    Capgemini powers Ahold Delhaize’s end-to-end transformation, developing blockchain technology use
    cases for Ahold Delhaize’s supply chain and leveraging its expertise in business transformation, as well as
    its understanding of Ahold’s industry and operations.
    Traditional retailers, equipped with AI and Robotics, will surpass pure digital players by 2030.
    The key is to position Ahold not as just another retail success story, but as the company that has
    rewritten the rules of digital transformation for every traditional business watching.