Sign in Subscribe
Macy's Inc.

Largest US Department Store Chain to be Formed through $11 Billion Merger

Strategic Insights

— 1 min read

Federated Department Stores has agreed to buy the rival May Company in a deal that would unite some of the most celebrated names in American retailing. The merger, which still requires federal regulator approval, would combine department store chains Macy's, Bloomingdale's, Lord & Taylor, Marshall Field's, and Filene's under a single corporate roof. The combined company would have approximately 1,000 stores and nearly $30 billion in annual sales, solidifying its position as the largest US department store chain.

Key Takeaways:

  • The merger would combine the department store chains Macy's, Bloomingdale's, Lord & Taylor, Marshall Field's, and Filene's under a single corporate roof, resulting in a single entity with approximately 1,000 stores and nearly $30 billion in annual sales.
  • The acquisition would give Federated more leverage in dealing with suppliers, landlords, and advertising outlets, with larger orders and more clout in pricing negotiations.
  • The deal is expected to attract scrutiny from antitrust regulators, but analysts say Federated and May are direct competitors in fewer than 100 shopping malls.
  • Department stores have been losing market share to discounters and specialty retailers in recent years, but experts argue that the merger could revitalize the department store experience by making it more attractive to young people.
  • The May Company's stock has risen more than 20 percent since news of the possible merger broke last month, indicating optimism about the deal's potential.

Statistics:

  • The combined company would have approximately 1,000 stores.
  • The combined company would have nearly $30 billion in annual sales.
  • The acquisition would give Federated more leverage in dealing with suppliers, landlords, and advertising outlets, with larger orders and more clout in pricing negotiations.
  • The May Company's stock has risen more than 20 percent since news of the possible merger broke last month.

Sources:

  • NPR News
  • Barnard's Retail Consulting Group

Read more