Macys Fianatial Ratios
INTRODUCTION
Getting to know the company
Federated Department Stores, Inc. is one of America’s premier national retailers, operating about 850 stores in 45 states, Guam, the District of Colombia and Puerto Rico. The company also operates macys.com, blomingdales.com and Bloomingdale’s by mail. Federated’s diverse workforce includes 200,000 employees. This store is what is known as a Fashion Retailer and it serves a more upscale costumer.
Unlike other US retailers, Federated’s believes in making most decisions as close as possible to the customers, so that the store assortment can reflect local and regional preferences. Macy’s stores are operated through a close coordinated network of seven retail divisions, each responsible for merchandising and operating functions within a geographical region. Bloomingdales manages its unique brand across the country.
FDS divides its business by departments:
As stated in the table above, most of FDS business comes from the Feminine Accessories division, although they also specialize in Men and Children’s Apparel and Home Accents.
The Department store type of business is a very volatile one, although the financial results have been very positive, the company has to be prepared to handle a lot of risk factors:
1. Competition in the retail industry.
Although the Company is one of the nation’s largest retailers, it has numerous and varied competitors including conventional and specialty department stores, other specialty stores, category killers, mass merchants, value retailers, discounters, and Internet and mail-order retailers. Competition may intensify as the Company’s competitors enter into business combinations or alliances. Competition is characterized by many factors, including assortment, advertising, price, quality, service, location, reputation and credit availability. If the company does not compete effectively with regard to these...
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