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Macy's PESTEL Analysis

Info: 809 words (3 pages) PESTEL Example
Published: 2nd Nov 2020

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The political environment where Macy's operates in affects the activities of Macy's Company in the US and beyond. Macy's political action committee (PAC) allows the company to take part in different political contributions (Macy's Inc., 2016). For example, in 2010, the company contributed $50,000 to political parties both at the national and local level.


An Economic environment where Macy's operates determines its success in the industry. The existing economic conditions are determinants to any successful business enterprise. According to Macy's Inc. (2016), the economic factor as an external environment element has an influence in the operations of the company within the American market. Just like other retailers, the Macy's feels the impact of economic turbulence, thus, affecting its economic goals. The economic environment of this company further reveals there is a high rate of unemployment. Part of this is brought about by seasonal recruitment by the company (Lee, 2014). Otherwise, Macy's is in the right direction towards achieving a better performance in the domestic market. The company generated about $25 billion as revenue in 2010 with an operating income of over $1 billion, a figure that translates into a 5% increase from 2009.


Giving back to the society is part of the Macy's Company business strategy. In partnership with other charity organisations, the company has adopted corporate social responsibility of making yearly donations that are channelled directly to the surrounding community to better their lives. Macy's Foundation, for example, has been the beneficiary of this program due to its community-based initiatives of improving the lives of the locals (Macy's Inc., 2016). Besides, the company remains cognisant of the changing fashions to remain in the market.


Technological developments play a considerable role in determining the success of the business. In the recent past, the company has adopted the use of IT systems to enhance the flow of information from within and without the organisation (Yuksel, 2012). It also uses technology to expand and improve its online business platform to strengthen its e-commerce platform. For example, the Omnichannel strategy of the business is driven by technology (Lee, 2014). The buyers have managed to have a new as well as a better buying experience via the internet. Besides, Macy's has used mobile technology to its advantage, which has made its e-commerce sites to become highly effective and operational.


Caring for the environment is considered to be one way that an organisation can utilise to achieve sustainability. From the company's social responsibility report, the company stays committed to giving the prospects a superior experience whenever they shop from any of the company's stores (Lee, 2014). Macy's looks up to conforming to good, healthy, and safe business practices that help in safeguarding or protecting the business and its surrounding environment. In other words, it concentrates much on achieving customer satisfaction without necessarily causing harm to the environment (Yuksel, 2012). For the purposes of achieving environmental friendliness, the company reduced the use of paper while at the same time embracing recycling of waste products to minimise environmental pollution, reduce wastages and enhance efficiency (Macy's Inc., 2016). With its plan, Macy's is aiming at raising its uptake of renewable energy to 5% from 3% as well as encouraging the use of sustainable raw materials to perform its business operatives.


The legal environment has an impact on the operations of a company. The legal requirements or regulations are issued by the state, federal and local authorities. Specifically, the regulations provide guidance on how the business should be operated or governed (Yuksel, 2012). For example, Macy's had been sued for selling unsafe and hazardous clothing (Macy's Inc., 2016). Worth to note is that all these proceedings have affected the company negatively.

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