Finance 301 Paper :
A Comparative Analysis Between Macys and the Retail Industry
The Retail Industry is the second largest industry in the United States, consisting of the
sale of goods and merchandize from a fixed location for consumption by a purchaser.
Inc. and three benchmark companies, Saks Fifth Avenue, JCPenney and Kohls, are leaders in the
Retail Industry and will be used for comparative strategic analysis.
We will also compare these
companies to the colossal Retail Industry.
It is necessary to have background information on the
retail companies before analyzing their financial ratios
Macys is a mid range American department store founded in 1858.
As of July 2005,
they had 424 stores all over the United States.
In 2006, Federated Department Stores Inc. stated
their plan to “divest May Company’s Lord & Taylor division by the end of 2006,” because they
didn’t feel it fit in with Macys and Bloomingdale’s “strategic focus.”
This left Lord & Taylor
available for purchase by Macys Inc. during the fall of 2006 for $1.2 billion.
Macy’s, Lord &
Taylor and Bloomingdales were all owned by Federal Department Stores Inc., ticket symbol FD.
In 2007, “FD” changed its name to Macy’s Inc. with a new ticker symbol “M.” (Macysinc, 2008)
Saks Fifth Avenue is an American upscale department store, owned and operated by a
subsidiary of Saks Incorporated.
In 1998, Saks was acquired by Proffitt’s Inc, which then
changed its name to Saks Incorporated, expanding the corporation even larger.
acquisition, Saks’s stock took a toll for the worse.
As a response to the poor stock
representation, Saks sold off all their retailers except Club Libby Lu.
J.C. Penney Company, Inc is simply known today as JCPenney.
founded in 1902 with its main store located in Plano, Texas.
In 1984, they acquired the First
National Bank of Harrington, Delaware and named it JCPenney National Bank.
In 2005, their