Macy's 2011 Annual Report Download - page 7

Considerations” in reports, statements and information filed by the Company with the SEC from time to time constitute
cautionary statements identifying important factors that could cause actual amounts, results, events and circumstances to differ
materially from those expressed in or implied by such forward-looking statements.
Item 1. Business.
General. The Company is a corporation organized under the laws of the State of Delaware in 1985. The Company and its
predecessors have been operating department stores since 1830. On June 1, 2007, the Company changed its corporate name
from Federated Department Stores, Inc. to Macy’s, Inc. and the Company’s shares began trading under the ticker symbol “M”
on the New York Stock Exchange (“NYSE”). As of January 28, 2012, the operations of the Company included approximately
840 stores in 45 states, the District of Columbia, Guam and Puerto Rico under the names “Macy’s” and “Bloomingdale’s” as
well as macys.com and bloomingdales.com. The Company also operates seven Bloomingdale’s Outlet stores.
The Company is focused on three key strategies for continued growth in sales, earnings and cash flow in the years ahead:
(i) maximizing the My Macy's localization initiative; (ii) driving the omnichannel business; and (iii) embracing customer
centricity, including engaging customers on the selling floor through the MAGIC selling program.
The My Macy's localization initiative 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 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 the My Macy's transformation, the Company's Macy's
branded stores were reorganized in a unified operating structure with division central office organizations eliminated. This has
reduced central office and administrative expense, eliminated duplication, sharpened execution, and helped the Company to
make decisions faster and partner more effectively with its suppliers and business partners.
The Company's omnichannel strategy allows customers to shop seamlessly in stores, online and via mobile devices.
Macy's MAGIC selling program is an approach to customer engagement that helps Macy's to better understand the needs
of customers, as well as to provide options and advice. This comprehensive training and coaching program is designed to
improve the in-store shopping experience.
In 2010, the Company piloted a new Bloomingdale's Outlet store concept. New Bloomingdale's Outlet stores continue to
open and are each approximately 25,000 square feet and offer a range of apparel and accessories, including women's ready-to-
wear, men's, children's, women's shoes, fashion accessories, jewelry, handbags and intimate apparel.
Also in 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 stores and Internet websites sell a wide range of merchandise, including apparel and accessories (men’s,
women’s and children’s), 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 2011, 2010 and 2009, the following merchandise constituted the following percentages of sales:
2011 2010 2009
Feminine Accessories, Intimate Apparel, Shoes and Cosmetics..................... 37% 36% 36%
Feminine Apparel............................................................................................ 25 26 26
Men’s and Children’s...................................................................................... 23 23 22
Home/Miscellaneous....................................................................................... 15 15 16
100% 100% 100%