Macy's 2010 Annual Report Download - page 10

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.
The principal private label brands currently offered by Macy’s include Alfani, American Rag, Bar III,
Charter Club, Club Room, Epic Threads, first impressions, Giani Bernini, greendog, Holiday Lane,
Hotel Collection, I-N-C, jenni by jennifer moore, John Ashford, JM Collection, Karen Scott, Martha
Stewart Collection, Morgan Taylor, Style & Co., Tasso Elba, the cellar, Tools of the Trade, and Via
Europa. The principal licensed brands managed by MMG are American Rag and Martha Stewart
Collection. The trademarks associated with all of the foregoing brands, other than American Rag and
Martha Stewart Collection, are owned by Macy’s. The American Rag and Martha Stewart Collection
brands are owned by third parties, which license the trademarks associated with such brands to Macy’s
pursuant to agreements which are presently scheduled to expire in 2050 and 2027, 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.
MMG also offers their services, either directly or indirectly, to unrelated third parties.
The Company’s executive offices are located at 7 West Seventh Street, Cincinnati, Ohio 45202, telephone
number: [phone] and 151 West 34th Street, New York, New York 10001, telephone number:
[phone].
Employees. As of January 29, 2011, the Company had approximately 166,000 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 29, 2011 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 must carry 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 2010. 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 stores and direct-to-customer
business operations compete with many retailing formats in the geographic areas in which they operate, including
department stores, specialty stores, general merchandise stores, off-price and discount stores, new and
established forms of home shopping (including the Internet, mail order catalogs and television) and
manufacturers’ outlets, among others. The retailers with which the Company competes include Bed Bath &
Beyond, Belk, Bon Ton, Burlington Coat Factory, Dillard’s, Gap, J.C. Penney, Kohl’s, Limited, Lord & Taylor,
Neiman Marcus, Nordstrom, 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.
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