Stock Stories Macy's (M) - Department Store For The Masses
Apr 1, 2023
Explore the evolution of Macy's, from its storied beginnings in the 1850s to its status as a retail icon today. Discover the business model that has kept it afloat through industry challenges. The podcast dives into Macy's recent financial recovery post-pandemic, examining intriguing metrics indicating potential undervaluation. With its low market capitalization and P-E ratio, the discussion raises exciting questions for investors about future growth and dividend opportunities.
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Macy's Early Innovation Story
- Macy's was founded in the 1850s by Rowland Hussey Macy who moved from Massachusetts to New York to find success.
- The store was innovative with Christmas Santa displays and illuminated windows, helping it rise to prominence early on.
Growth Through Acquisitions
- Macy's vast expansion happened mainly through acquisitions, converting many regional stores to its name.
- This pattern of growth via takeovers is typical for long-standing American consumer businesses.
Shift From Cash to Credit
- Macy's accepted only cash for about 100 years, shifting to credit cards only around 1950.
- This change aligned with evolving consumer habits and boosted Macy's retail sales.