Macy's 2010 Annual Report Download - page 9

In 2008, the Company announced the “My Macy’s” localization initiative which was developed with the
goal of accelerating sales growth in existing locations by ensuring that core customers surrounding each Macy’s
store find merchandise assortments, size ranges, marketing programs and shopping experiences that are custom-
tailored to their needs. My Macy’s has concentrated more management talent in local markets, effectively
reducing the “span of control” over local stores; created new positions in the field to work with district planning
and buying executives in helping to understand and act on the merchandise needs of local customers; and
empowered locally based executives to make more and better decisions. Also as part of My Macy’s, the
Company’s Macy’s branded stores are organized in a unified operating structure and division central office
organizations were eliminated. This has reduced central office and administrative expense, eliminated
duplication, sharpened execution, and helped the Company to partner more effectively with its suppliers and
business partners.
During January 2010, the Company announced plans to launch a new Bloomingdale’s Outlet store concept
in 2010, to initially consist of four Bloomingdale’s Outlet stores, each with approximately 25,000 square feet. All
four Bloomingdale’s Outlet stores opened during 2010. Additional Bloomingdale’s Outlet stores are expected to
roll out to selected locations across the country in 2011 and beyond. Additionally, in February 2010,
Bloomingdale’s opened in Dubai, United Arab Emirates under a license agreement with Al Tayer Insignia, a
company of Al Tayer Group, LLC, under which the Company is entitled to a license fee in accordance with the
terms of the underlying agreement, generally based upon the greater of the contractually earned or guaranteed
minimum amounts.
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 2010, 2009 and 2008, the following merchandise constituted the following percentages of sales:
2010 2009 2008
Feminine Accessories, Intimate Apparel, Shoes and Cosmetics ......................... 36% 36% 36%
Feminine Apparel ............................................................. 26 26 27
Men’s and Children’s .......................................................... 23 22 22
Home/Miscellaneous .......................................................... 15 16 15
100% 100% 100%
In 2010, 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.
• 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 and certain
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