Macy's 2014 Annual Report Download - page 20

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15
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 has announced plans to open a Macy's and a Bloomingdale's store in Abu Dhabi, United Arab
Emirates in 2018 under a license agreement with Al Tayer Group, LLC.
During 2013, the Company opened three new Macy's stores in Victorville, CA; Gurnee, IL; and Las Vegas, NV; a
Macy's replacement store in Bay Shore, NY; a new Bloomingdale's store in Glendale, CA; and a new Bloomingdale's
Outlet store in Rosemont, IL. During 2014, the Company opened three new Macy's stores in the Bronx, NY; Las Vegas,
NV; and Sarasota, FL, one Bloomingdale's replacement store in Palo Alto, CA, and one new Bloomingdale's furniture
clearance store in Wayne, NJ. The Company has announced that in 2015 it intends to open a new Macy's store in Ponce, PR
a new Bloomingdale's store in Honolulu, HI, and a new Bloomingdale's Outlet store in the heart of Manhattan's Upper
West Side and in 2016 it intends to open one new Macy's store in Kapolei, HI and a Macy's replacement store in Los
Angeles, CA. In 2017 the Company intends to open new Macy's and Bloomingdale's stores in Miami, FL and a new
Bloomingdale's store in San Jose, CA, and in 2018 it intends to open a new Bloomingdale's store in Norwalk, CT. In
addition, new Macy's and Bloomingdale's stores are planned to open in Abu Dhabi, United Arab Emirates, in 2018 under
license agreements with Al Tayer Group, LLC.
The Company's operations are impacted by competitive pressures from department stores, specialty stores, mass
merchandisers, online retailers and all other retail channels. The Company's operations are also impacted by general
consumer spending levels, including the impact of general economic conditions, consumer disposable income levels,
consumer confidence levels, the availability, cost and level of consumer debt, the costs of basic necessities and other goods
and the effects of weather or natural disasters and other factors over which the Company has little or no control.
In recent years, consumer spending levels have been affected to varying degrees by a number of factors, including
modest economic growth, uncertainty regarding governmental spending and tax policies, high unemployment levels,
tightened consumer credit, a slowly improving housing market and a rising stock market. These factors have affected to
varying degrees the amount of funds that consumers are willing and able to spend for discretionary purchases, including
purchases of some of the merchandise offered by the Company.
All economic conditions ultimately affect the Company's overall operations. However, the effects of economic
conditions can be experienced differently and at different times, in the various geographic regions in which the Company
operates, in relation to the different types of merchandise that the Company offers for sale, or in relation to each of the
Company's branded operations.
As of the date of this report, inventory levels were negatively impacted by delayed receipts related to the West Coast
port shut down and labor dispute. An estimated impact on sales, gross margin and expense was incorporated into the
Company's 2015 earnings assumptions.