Macy's 2013 Annual Report Download - page 7

Table of Contents
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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 1, 2014, 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
thirteen 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 2013, 2012 and 2011, the following merchandise constituted the following percentages of sales:
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Feminine Accessories, Intimate Apparel, Shoes and Cosmetics 38%
38%
37%
Feminine Apparel 23
23
25
Men’s and Children’s 23
23
23
Home/Miscellaneous 16
16
15
100%
100%
100%
In 2013, 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, Charter Club, Club Room,
Epic Threads, first impressions, Giani Bernini, greendog, Greg Norman for Tasso Elba, Home Design, Hotel Collection, Hudson Park,
Ideology, I-N-C, jenni by jennifer moore, JM Collection, John Ashford, Karen Scott, Maison Jules, Martha Stewart Collection, Material Girl,
Morgan Taylor, so jenni by jennifer moore, Studio Silver, Style & Co., Style & Co. Sport, Sutton Studio, Tasso Elba, the cellar, Tools of the
Trade, 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, 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.
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