Macy's is a chain of American department stores, founded in 1858. The flagship store is located in Herald Square, New York City, billed as the "world's largest store." In addition to two other flagship stores in San Francisco and Chicago, the company has recently used its name on a number of smaller retail stores across the country.
Macy's is particularly known for its annual Thanksgiving Day Parade, whose route ends at the flagship store in Herald Square. Over the decades, the Muppets have been among the many pop-culture figures to be depicted in balloon form or to appear atop floats.
The Herald Square store itself has also featured a variety of decorative themed window displays over the years, including several muppet displays. The flagship store was also the exclusive retailer for Nanco Muppets' Wizard of Oz Plush and a Muppets' Wizard of Oz T-shirt.
On Monday, April 16, 1979, for the 10th anniversary of Sesame Street, Northern Calloway performed live as David, in a participatory show. From 11 am to 4 pm that day, artists Karen Fredericks, Carla Bauer, Abbey Merrill and Peter Branley were on hand to "draw your child's favorite Sesame Street character." From April 16-20, the fifth floor "little theatre" had A Sesame Street Film Festival, showing A Walking Tour of Sesame Street. 
In 2002, coinciding with the unveiling of the new Kermit balloon in the Thanksgiving Day Parade, Macy's stores sold exclusive Kermit snow globes, Christmas ornaments and a special talking Kermit the Frog doll with a working Muppet camera.  In 2004, an exclusive Grover plush and watch was available for sale.
For the store's 150th anniversary celebrations, held at the flagship location, Elmo and Jessica Simpson were set to sing "Happy Birthday to You" together; Simpson's flight was delayed due to bad weather.
In Christmas Eve on Sesame Street, when Kermit asks a distraught Big Bird and Patty "who knows more about Santa Claus than anybody?", they suggest the elves, Mrs. Claus, and Macy's before Kermit suggests that the right answer is kids.