Welcome to Brand of the Day, where we pick the brand making headlines and explain what you need to know about why it's in the news.
Macy’s is the latest company to sever ties with business mogul Donald Trump following his derogatory and racist comments about Mexico and Mexicans.
Macy’s released a statement on Wednesday which said it was “disappointed and distressed” about Trump’s remarks, in which he described some Mexicans as criminals, drug dealers and rapists.
Trump made the comments in his presidential announcement speech last month in which he attacked Mexico for “sending people [to the US] that have lots of problems” adding “they are bringing drugs, and bringing crime, and they're rapists”.
The Trump collection for Macy’s includes $70 button-down shirts, $65 striped ties and stainless steel dollar sign cufflinks.
Here’s more behind the brand.
Macy’s iconic Thanksgiving Day Parade attracts around 3.5 million people to New York City to see the parade march down a two-and-a-half mile stretch of Manhattan. The first parade was known as The Macy’s Christmas Parade and organised by a small group of Macy’s employees in 1924. It featured animals from Central Park Zoo and its success resulted in it becoming an annualised event.
The department store chain has been struggling in recent years with sales growing just 1.4 per cent in the last financial quarter of this year, far less than analysts had predicted. The company’s chief financial officer, Karen Hoguet, said that purchasing trends such as Netflix subscriptions among millennials were to blame after Morgan Stanley research showed that the key demographic had tendency to spend money on electronics and online subscriptions rather than apparel.
Macy's has spent nearly $2bn on IT and e-commerce projects over the past five years to compete with online giants such as Amazon.com Inc.
Macy's also owns the designer brand Michael Kors. Macy’s has endured significant financial problems as a result of the brand which recorded a 6.7 per cent decline in same-store sales in North America during the last financial quarter along with a 43 per cent decline in shares since the beginning of the year and nearly 52 per cent in the last 12 months.
In May the company opened a new tech-friendly office space in Silicon Valley which is producing new technology for the company. The first piece of technology to emerge is an app that allows consumers to take photos a product anywhere in the world and be directed to the same product, or something similar, that Macy’s offers online.