Abstract: This study explores the challenges faced by Macys in the United States and its strategy for digital transformation. Firstly, it introduces the rise and fall of the U.S. department store industry and the challenges Macys faces as a representative of the traditional department store industry, such as the rise of e-commerce and changes in consumer shopping habits. Then, taking Macys as a case study, it describes its digital transformation strategy, Polaris, including cost reduction, accelerated digitization, reshaping the supply chain and other initiatives and the results achieved. It then proposes specific plans for staffing adjustments, enterprise transaction process optimization and online business model modifications. Finally, the challenges that may be faced in implementing digital transformation programs, such as data silos, change management and financial overheads, are analyzed, and solutions are proposed. By summarizing and learning from the successful experiences of modern enterprises, this study proposes a series of feasible digital transformation plans for Macy's to emerge from the predicament of the traditional department store industry, meet the challenges of the digital era, and achieve a renaissance.