Macy's 2012 Annual Report Download - page 7

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2
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. As of February 2, 2013, 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 operates twelve Bloomingdale’s Outlet stores.
Bloomingdale's in Dubai, United Arab Emirates is operated under a license agreement with Al Tayer Insignia, a company of Al
Tayer Group, LLC.
The Company’s sells 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 2012, 2011 and 2010, the following merchandise constituted the following percentages of sales:
2012 2011 2010
Feminine Accessories, Intimate Apparel, Shoes and Cosmetics..................... 38% 37% 36%
Feminine Apparel............................................................................................ 23 25 26
Men’s and Children’s...................................................................................... 23 23 23
Home/Miscellaneous....................................................................................... 16 15 15
100% 100% 100%
In 2012, 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 provides 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, and its
subsidiary Macy's Merchandising Group International, LLC., is responsible for the design, development and
marketing of Macy’s private label brands and certain licensed brands. Bloomingdale’s uses MMG for only a very
small portion of its private label merchandise. The Company believes that its private label merchandise further
differentiates its merchandise assortments from those of its competitors and delivers exceptional value to its
customers. MMG also offers its services, either directly or indirectly, to unrelated third parties.
The principal private label brands currently offered by the Company include Alfani, American Rag, Aqua, Bar
III, Belgique, Charter Club, Club Room, Epic Threads, 55 Broome, first impressions, Giani Bernini, greendog,
Greg Norman for Tasso Elba, Holiday Lane, Home Design, Hotel Collection, Hudson Park, Ideology, I-N-C,
jenni by jennifer moore, JM Collection, John Ashford, Karen Scott, Martha Stewart Collection, Material Girl,
Morgan Taylor, Oake, Pop Knits, so jenni by jennifer moore, Sky, Studio Silver, Style & Co., Style & Co. Sport,
Sutton Studio, Tasso Elba, the cellar, Tools of the Trade, Tools of the Trade Basics, and Via Europa.
The trademarks associated with all of the foregoing brands, other than American Rag, Greg Norman for Tasso
Elba, Martha Stewart Collection, and Material Girl are owned by the Company. The American Rag, Greg
Norman for Tasso Elba, Martha Stewart Collection, and Material Girl brands are owned by third parties, which
license the trademarks associated with such brands to Macy’s pursuant to agreements which have renewal rights
that extend through 2050, 2020, 2027, and 2030, respectively.
• Macy’s Logistics and Operations (“Macy’s Logistics”), a division of a wholly-owned indirect subsidiary of the
Company, provides warehousing and merchandise distribution services for the Company’s operations.