Macy's 2015 Annual Report Download - page 8

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3
The trademarks associated with all of the foregoing brands, other than American Rag, Greg Norman for
Tasso Elba, Martha Stewart Collection, Material Girl and Thalia Sodi are owned by the Company. The
American Rag, Greg Norman, Martha Stewart Collection, Material Girl and Thalia Sodi 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, 2030 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
and digital customer fulfillment.
The Company’s executive offices are located at 7 West 7th Street, Cincinnati, Ohio 45202, telephone number:
(513) 579-7000 and 151 West 34th Street, New York, New York 10001, telephone number: (212) 494-1602.
Employees
As of January 30, 2016, the Company had approximately 157,900 regular full-time and part-time employees.
Because of the seasonal nature of the retail business, the number of employees peaks in the holiday season. Approximately
10% of the Company’s employees as of January 30, 2016 were represented by unions. Management considers its relations
with its employees to be satisfactory.
Seasonality
The retail business is seasonal in nature with a high proportion of sales and operating income generated in the months
of November and December. Working capital requirements fluctuate during the year, increasing in mid-summer in
anticipation of the fall merchandising season and increasing substantially prior to the holiday season when the Company
carries significantly higher inventory levels.
Purchasing
The Company purchases merchandise from many suppliers, no one of which accounted for more than 5% of the
Company’s net purchases during 2015. The Company has no material long-term purchase commitments with any of its
suppliers, and believes that it is not dependent on any one supplier. The Company considers its relations with its suppliers
to be satisfactory.
Competition
The retailing industry is intensely competitive. The Company’s operations compete with many retailing formats,
including department stores, specialty stores, general merchandise stores, off-price and discount stores, manufacturers’
outlets, online retailers, mail order catalogs and television shopping, among others. The retailers with which the Company
competes include Amazon, Bed Bath & Beyond, Belk, Bon Ton, Burlington Coat Factory, Dillard’s, Gap, J.C. Penney,
Kohl’s, L Brands, Lord & Taylor, Neiman Marcus, Nordstrom, Ross Stores, Saks, Sears, Target, TJ Maxx and Wal-Mart.
The Company seeks to attract customers by offering superior selections, obvious value, and distinctive marketing in stores
that are located in premier locations, and by providing an exciting shopping environment and superior service through an
omnichannel experience. Other retailers may compete for customers on some or all of these bases, or on other bases, and
may be perceived by some potential customers as being better aligned with their particular preferences.