Macy's 2001 Annual Report Download - page 11

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having t he best people in retailing, and t o ensuring t hat caring f or t he cust omer is t he
t op priorit y in t he way we do business.
In 2002, we will be increasing t he int ensity of t raining and development f or our sales
associat es on t he selling f loor, helping t hem maximize t heir perf ormance and drive sales.
We also will ext end t he acclaimed Federated Leadership Inst it ut e, wit h it s unique approach
t o personal development and achievement - based management, t o a broader audience of
employees. In our view, t his investment in our people – and in cust omer sat isf act ion – is
more import ant t han ever in a dif f icult economy.
Our people will have t he support and t ools necessary f or success. Stores will be more
customer- f riendly in t he way merchandise is organized, displayed and signed. Technology
will cont inue t o make t ransactions f aster and easier, t o communicate useful inf ormat ion
direct ly t o customers t hrough in- st ore comput er t erminals and displays, and even t o
streamline bridal registry select ion and gif t - giving t hrough t he use of Palm Pilot s in some
stores. On- location amenit ies, such as upscale cof f ee shops, shopping cart s and childcare
in select ed locations, will encourage cust omers t o st ay and shop in our st ores longer.
To improve profitability…
Federat ed is managing it s business t o grow sales while increasing it s prof it abilit y and
producing st rong cash f low. This requires us t o cont rol cost s, employ new t echnologies,
manage asset s ef f ect ively and priorit ize capit al spending – all of which we have
ident if ied as key areas of f ocus t hat will enable us t o return t o hist orical levels of
prof it abilit y in t he near f ut ure.
In a rapidly changing ret ail sect or – one in which f lexibilit y is essent ial t o t ake
advant age of high- pot ent ial opport unit ies as t hey emerge – a st rong balance sheet is
paramount and cash is king. In 2001, Federat ed’s f ree cash f low f rom depart ment
store operat ions was approximat ely $775 million, af t er capit al expendit ures but bef ore
t he acquisition of Libert y House. This was well above t he approximately $600 million
generated in f iscal 2000.
We will not be a st atic organizat ion t hat’s resigned simply t o prot ect our t urf . Federat ed
is committ ed t o a pat h of st eady and prof itable growt h built on decisive act ion and
innovat ive approaches. We are a company t hat st ands f or qualit y. We st and f or value.
We st and f or f ashion and excit ement . But we most cert ainly don’t st and st ill.