Macy's 2009 Annual Report Download - page 9

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During 2007, the Company conducted its operations through seven Macy’s divisions, together with its
Bloomingdale’s division, macys.com division and bloomingdales.com division (which also operated
Bloomingdale’s By Mail during 2007). In 2008, the Company announced a new localization initiative, called
“My Macy’s,” which is intended to strengthen local market focus and enhance selling service. In combination
with the My Macy’s initiative, the Company consolidated its Minneapolis-based Macy’s North organization into
New York-based Macy’s East, its St. Louis-based Macy’s Midwest organization into Atlanta-based Macy’s
South and its Seattle-based Macy’s Northwest organization into San Francisco-based Macy’s West. The Atlanta-
based division was renamed Macy’s Central. During 2009, the Company reorganized its Macy’s branded stores
into a unified operating structure, through additional division consolidations eliminating central office
organizations in New York-based Macy’s East, San Francisco-based Macy’s West, Atlanta-based Macy’s Central
and Miami-based Macy’s Florida. In conjunction with these division consolidations, the Company restructured
the field organizations in these geographical areas to better localize product offerings and improve service levels.
Under the new structure, central buying, merchandising planning, stores senior management and marketing
functions for both Macy’s and Bloomingdale’s branded operations are located primarily in New York. Corporate-
related business functions, such as finance, human resources, law, property development and supply purchasing
are located primarily in Cincinnati. Macy’s stores nationwide are grouped into 69 geographic districts that
average ten to twelve stores each. The 69 Macy’s districts are grouped into eight regions.
The Company’s retail stores and Internet websites sell a wide range of merchandise, including men’s,
women’s and children’s apparel and accessories, cosmetics, home furnishings and other consumer goods. The
specific assortments vary by size of store, merchandising character and character of customers in the trade areas.
Most stores are located at urban or suburban sites, principally in densely populated areas across the United
States.
For 2009, 2008 and 2007, the following merchandise constituted the following percentages of sales:
2009 2008 2007
Feminine Accessories, Intimate Apparel, Shoes and Cosmetics ......................... 36% 36% 36%
Feminine Apparel ............................................................. 26 27 27
Men’s and Children’s .......................................................... 22 22 22
Home/Miscellaneous .......................................................... 16 15 15
100% 100% 100%
In 2009, the Company’s subsidiaries provided various support functions to the Company’s retail operations
on an integrated, company-wide basis.
• The Company’s bank subsidiary, FDS Bank, and its financial, administrative and credit services
subsidiary, Macy’s Credit and Customer Service, Inc. (“MCCS”), provide credit processing, certain
collections, customer service and credit marketing services in respect of all proprietary and
non-proprietary credit card accounts that are owned either by Department Stores National Bank
(“DSNB”), a subsidiary of Citibank, N.A., or FDS Bank and that constitute a part of the credit
programs of the Company’s retail operations. In addition, MCCS provides payroll and benefits services
to all of the Company’s operations.
• Macy’s Systems and Technology, Inc. (“MST”), a wholly-owned indirect subsidiary of the Company,
provides operational electronic data processing and management information services to all of the
Company’s operations.
• Macy’s Merchandising Group, Inc. (“MMG”), a wholly-owned direct subsidiary of the Company, is
responsible for the design, development and marketing of Macy’s private label brands. Bloomingdale’s
uses MMG for only a small portion of its private label merchandise. The Company believes that its
private label merchandise further differentiates its merchandise assortments from those of its
3