Macy's 2002 Annual Report Download - page 11

7
What’s your answer to
fashion sameness?
Two words: unique product.
Fashion has become much more complex in recent years
with the emergence of more casual dressing and the
diffusion of mass media that create and lead trends.
Federated is addressing this issue in two principal ways.
First, we have fortified and accelerated our exclusive-to-
Federated private brand development. Each of our 10
private brands is designed and marketed to appeal to
a specific customer segment. For example, I·N·C offers
updated casual fashions for a more contemporary
woman, while Charter Club attracts more classic,
traditional customers.
We also are working with key vendors to develop fashion
lines and product that are exclusive to Federated.
Conviction is the key. When we believe in a particular
fashion trend, we are going to do a better job of making
that statement to our customers with the force of
our conviction.
As a shareholder, what does
Federated offer me?
Federated offers its shareholders a strong financial position
and the opportunity for continuous improvement. And
while trend- or niche-based retailers rise and fall with the
fads, Federated offers relative stability.
Even in the difficult economic environment of 2002,
Federated generated significant free cash flow. A long and
proven track record provides us the planning sophistication
to adjust our buying and store operations to fluctuating
business levels – thus insulating Federated from erratic
swings in financial performance.
Federated has invested consistently over time in technology,
systems, logistics, store improvements and brand devel-
opment. We pride ourselves on being an industry leader,
and the strong operating foundation we have in place
provides Federated the ability to simultaneously reduce
and contain
costs, deliver
enhanced
value to
customers
and improve
earnings.