Macy’s, Inc. to enhance its real estate portfolio value with Brookfield Asset Management partnership

CINCINNATI, 2016-Nov-12 — /EPR Retail News/ — Consistent with its previously announced strategy, Macy’s, Inc. (NYSE:M) today (Nov. 10, 2016) announced it is forming a strategic alliance with Brookfield Asset Management, a leading global alternative asset manager, to create increased value in its real estate portfolio.

Brookfield’s investments in real estate span all major sectors – retail, office, multi-family, industrial and hospitality. Brookfield is one of the few firms with both the capital and the operating capability required for this type of partnership. Together, the companies believe they will be able to realize the development potential of Macy’s portfolio.

(Editor’s Note: Macy’s, Inc. today also issued a separate news release announcing third quarter 2016 earnings, reaffirming full-year 2016 EPS guidance and raising full-year sales guidance.)

Under the alliance, Brookfield will have an exclusive right for up to 24 months to create a “pre-development plan” for each of approximately 50 Macy’s real estate assets, with an option for Macy’s to continue to identify and add assets into the alliance. These assets primarily include owned and ground- leased stores and associated land, most of which are located in malls not owned by major mall owners. The breadth of opportunity within the portfolio ranges from the additional development on a portion of an asset (such as a Macy’s-controlled land parcel adjacent to a store) to the complete redevelopment of an existing store.

“We have real estate assets with significant value creation opportunities, and we believe that partnering with a leading global real estate investor like Brookfield is the best way to unlock the potential of those assets,” said Terry J. Lundgren, Macy’s, Inc. chairman and chief executive officer. “The Brookfield alliance strengthens our ability to improve the customer shopping experience by giving us greater flexibility to invest in our most productive and highest-potential locations, and to make the most of our real estate assets, or portions of them.”

“We are pleased to partner with Macy’s on this important initiative,” said Brian Kingston, CEO, Brookfield Property Group. “The Macy’s portfolio includes some of the highest quality real estate in the United States and we look forward to working closely with them to unlock value for their shareholders and enhance the shopping experience for their customers.”

The Brookfield alliance is part of Macy’s previously-announced strategy to generate value from its real estate portfolio consistent with the company’s commitment to stores as a critical element of its long-term omnichannel strategy and its balance sheet objectives. The company is also exploring options for its flagship stores and closing approximately 100 full-line Macy’s stores due to underperformance or because the value of the real estate exceeds the value to Macy’s as a retail store location.

Eastdil Secured and Goldman, Sachs & Co. acted as financial advisors to Macy’s.

Macy’s, Inc., with corporate offices in Cincinnati and New York, is one of the nation’s premier retailers, with fiscal 2015 sales of $27.079 billion. The company operates about 880 stores in 45 states, the District of Columbia, Guamand Puerto Rico under the names of Macy’s, Bloomingdale’s, Bloomingdale’s Outlet, Macy’s Backstage and Bluemercury, as well as the macys.com, bloomingdales.com and bluemercury.com websites. Bloomingdale’s in Dubai is operated by Al Tayer Group LLC under a license agreement.

All statements in this press release that are not statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of Macy’s management and are subject to significant risks and uncertainties. Actual results could differ materially from those expressed in or implied by the forward-looking statements contained in this release because of a variety of factors, including conditions to, or changes in the timing of, proposed real estate and other transactions, prevailing interest rates and non-recurring charges, store closings, competitive pressures from specialty stores, general merchandise stores, off-price and discount stores, manufacturers’ outlets, the Internet, mail-order catalogs and television shopping and general consumer spending levels, including the impact of the availability and level of consumer debt, the effect of weather and other factors identified in documents filed by the company with the Securities and Exchange Commission.

(NOTE: Additional information on Macy’s, Inc., including past news releases, is available at www.macysinc.com/pressroom)

Contact:

Media:
Holly Thomas
646-429-5250
holly.thomas@macys.com

Investor:
Matt Stautber
513-579-7780

Source: Macy’s, Inc.

Macy’s, Inc. to hire 83,000 seasonal associates for the 2016 Christmas and holiday season

CINCINNATI, 2016-Sep-22 — /EPR Retail News/ — Macy’s, Inc. (NYSE:M) today (Sep. 20, 2016) said it plans to hire seasonal associates for approximately 83,000 positions at its Macy’s and Bloomingdale’s stores, call centers, distribution centers and online fulfillment centers nationwide for the 2016 Christmas and holiday season. The company’s 2016 seasonal hiring plan is essentially flat to last year.

The company also announced its first national holiday hiring day, to take place on Friday, Sept. 30, an expansion of successful events which took place in certain locations last year. Job candidates can visit all Macy’s, Bloomingdale’s and Macy’s Backstage store locations between 2 – 8 p.m. (in local time zones) during the event. Candidates should apply in advance at macysJOBS.com or bloomingdalesJOBS.com to discover open positions and opportunities for on-site interviews.

“However our customers connect with us – in stores, online and mobile, or over the phone – Macy’s and Bloomingdale’s shoppers have come to appreciate the higher level of our staffing and service throughout the Christmas and holiday season, and our associates love the merchandise discount and income-earning opportunities at this special time of the year,” said Terry J. Lundgren, Macy’s, Inc. chairman and chief executive officer. “We first offer our current associates the opportunity to work extra hours over the holidays, and then supplement our ongoing workforce with seasonal hires. This significant increase in staffing allows us to provide additional service to customers, however they engage with us.”

Seasonal associates at Macy’s and Bloomingdale’s serve customers on the selling floor, work in store operations positions, interact with customers via call centers, and staff the distribution and fulfillment centers that coordinate shipments to stores and directly to customers who buy online or via mobile. Macy’s, Inc. is one of the largest online retailers in America.

Wherever seasonal associates join the company, all will qualify for a 20 percent merchandise discount on most of their purchases – especially appreciated during the holiday gift-giving time.

Macy’s, Inc.’s 2016 seasonal hiring plan includes the following:

  • Approximately 15,000 of the 83,000 total seasonal positions will be based in direct-to-consumer fulfillment facilities that support sales generated by the company’s omnichannel business strategy. This is an increase of 3,000 positions compared to 2015. These positions are located in megacenters in Goodyear, AZ; Cheshire, CT;Tulsa, OK; Portland, TN; and Martinsburg, WV, as well as in product-specific fulfillment centers in Sacramento, CA; Stone Mountain, GA; Secaucus, NJ; and Joppa, MD.
  • About 1,000 associates will be hired to interact with customers via telephone, e-mail and online chat at customer service centers in Mason, Ohio, Clearwater, FL, and Tempe, AZ.
  • More than 1,000 people will be hired across the country to support the 90th Macy’s Thanksgiving Day Parade, Santalands and other iconic holiday events.

“These seasonal positions fill an important niche in the American employment spectrum. Especially at the holidays, we employ students working during break to help pay tuition, retirees seeking to remain active, and individuals from many walks of life wanting to supplement their income and benefit from receiving a merchandise discount on their purchases. We are proud to offer them this opportunity to work in a fun, fast-paced and collegial environment,” Lundgren said.

Applications for seasonal positions at Macy’s and Bloomingdale’s are being accepted at macysJOBS.com and bloomingdalesJOBS.com, the company’s easy-to-navigate hiring sites. Candidates who submit applications online will receive a response via e-mail.

Most seasonal positions are part-time, often with flexibility to fit the availability of the individuals hired. Many positions require the applicant to work evenings and weekends and some require overnight. In some cases, temporary seasonal associates are offered open year-round positions based on their skills and performance over the holiday season.

“We have many examples of associates who started with us in temporary seasonal positions and stayed to enjoy a long and fulfilling career with our company. Seasonal employment is often an opportunity to get to know potential future employees and to identify talent that we can recruit as needs arise,” added Lundgren. “The holidays are a magical time of year, and helping customers select gifts from Macy’s and Bloomingdale’s is a special experience that generations of associates have enjoyed and found rewarding.”

Macy’s, Inc. employs about 157,900 associates on a year-round basis.

Macy’s, Inc., with corporate offices in Cincinnati and New York, is one of the nation’s premier retailers, with fiscal 2015 sales of $27.079 billion. The company operates about 880 stores in 45 states, the District of Columbia, Guamand Puerto Rico under the names of Macy’s, Bloomingdale’s, Bloomingdale’s Outlet, Macy’s Backstage and Bluemercury, as well as the macys.com, bloomingdales.com and bluemercury.com websites. Bloomingdale’s in Dubai is operated by Al Tayer Group LLC under a license agreement.

All statements in this press release that are not statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of Macy’s management and are subject to significant risks and uncertainties. Actual results could differ materially from those expressed in or implied by the forward-looking statements contained in this release because of a variety of factors, including conditions to, or changes in the timing of, proposed transactions, prevailing interest rates and non-recurring charges, store closings, competitive pressures from specialty stores, general merchandise stores, off-price and discount stores, manufacturers’ outlets, the Internet, mail-order catalogs and television shopping and general consumer spending levels, including the impact of the availability and level of consumer debt, the effect of weather and other factors identified in documents filed by the company with the Securities and Exchange Commission.

(NOTE: Additional information on Macy’s, Inc., including past news releases, is available at www.macysinc.com/pressroom)

Contact:
Media:
Holly Thomas
646-429-5250
Holly.Thomas@macys.com

Investor:
Matt Stautberg
513-579-7780

Source: Macy’s, Inc.

Macy’s CEO Terry J. Lundgren will transition the position to Jeff Gennette in Q1 2017

Terry Lundgren to remain Executive Chairman as Jeff Gennette becomes CEO in the first quarter of 2017; Planned succession process supports upcoming strategies for business improvement

CINCINNATI, 2016-Jun-28 — /EPR Retail News/ — Macy’s, Inc. (NYSE:M) today announced that Terry J. Lundgren, the company’s CEO since 2003 and Chairman since 2004, will transition the position of CEO to Jeff Gennette in the first quarter of 2017. The transition is part of the board of directors’ succession plan that included Gennette’s election as President of Macy’s, Inc. in 2014. Beyond the first quarter of 2017, Lundgren will continue as Executive Chairman of the company and work side-by-side with Gennette as President and CEO.

Gennette will join the Macy’s, Inc. board of directors, effective today – bringing the size of the board to 14 members. He will assume additional management responsibility during the transition period, including oversight of the Macy’s stores organization.

“I have been honored to lead this enterprise through a period of unprecedented reinvention. While our company is larger, stronger and more resourceful than we were 13 years ago, now is the time to reset our business model to thrive in a future that is being driven by rapid evolution in consumer preferences and shopping habits. Our company must and will change in response to the profound secular forces that are driving consumer spending. I am firmly committed to, and invigorated by, the process we have begun to set a going-forward strategy in lockstep with our evolving customers,” Lundgren said.

“Jeff Gennette is an extraordinary leader who has distinguished himself as a skilled merchant and retail operator. He has worked closely with me over the past two years as president of Macy’s, Inc. in a first step in this succession process, and we are closely aligned on creating a compelling and sustainable path forward. In making this announcement today, the board and I want to communicate proactively the timing of the CEO transition as we act to seamlessly implement our future plans. Jeff and our team are well equipped to continue the transformation of our company for the next generation of customers and associates.”

Added Marna C. Whittington, Macy’s, Inc. lead independent director: “Since taking the reins in 2003, Terry Lundgrenhas been an outstanding leader of this company. His tenure has included nearly doubling topline sales, acquiring theMay Department Stores Company, creating Macy’s and Bloomingdale’s as nationwide brands with emerging global opportunities, and establishing Macy’s, Inc. as one of the top six online retailers in the United States, and number three in the categories we sell. His leadership, combined with his vision and energy, will help set the tone for the next generation of growth at Macy’s, Inc. in collaboration with Jeff and the management team. One of Terry’s hallmarks has been creating an exceptional depth of management talent. Jeff Gennette has demonstrated proven leadership skills over his 33-year career with the company, and he is uniquely capable of leading the next chapter of Macy’s, Inc.’s history given his in-depth knowledge of the organization, his merchandising acumen and clear insight into the evolution of the retailing landscape. The entire board of directors is pleased and we are fortunate that an executive of Jeff’s caliber is in place to be the company’s next CEO and lead implementation of our going-forward strategies.”

Lundgren and Gennette will continue to work very closely together on improving current business trends and setting the stage for changes that will be announced as decisions are finalized.

“This is the time for us to be laser-focused on what is most important to our customers, and how we can best deliver the shopping experience that will secure our position as the premier omnichannel retailer of the future,” Gennette said. “We have successfully navigated our way through changing customer trends in the past and there is no doubt that Macy’s, Inc. will need to be a significantly different retailer in the future in the way we operate and approach the marketplace. But we also must continue to tackle our immediate priorities with vigor and discipline. Terry and I have an outstanding relationship and we will continue to collaborate closely through this CEO transition process.”

Jeff Gennette, 55, was named President of Macy’s, Inc. in March 2014 after serving as Macy’s Chief Merchandising Officer since February 2009. From February 2008 to February 2009, Gennette served as chairman and CEO of Macy’s West in San Francisco. He began his retail career in 1983 as an executive trainee at Macy’s West. He held positions of increasing responsibilities, including vice president and division merchandise manager for men’s collection and senior vice president and general merchandise manager for men’s and children’s. In 2004, Gennette was appointed executive vice president and director of stores at Macy’s Central in Atlanta. From February 2006 toFebruary 2008, Gennette was chairman and chief executive officer of Seattle-based Macy’s Northwest. During his career, Gennette also served as a store manager for FAO Schwarz and director of stores for Broadway Stores, Inc.Gennette, a native of San Diego, is a graduate of Stanford University.

Macy’s, Inc., with corporate offices in Cincinnati and New York, is one of the nation’s premier retailers, with fiscal 2015 sales of $27.079 billion. The company operates about 870 stores in 45 states, the District of Columbia, Guamand Puerto Rico under the names of Macy’s, Bloomingdale’s, Bloomingdale’s Outlet, Macy’s Backstage and Bluemercury, as well as the macys.com, bloomingdales.com and bluemercury.com websites. Bloomingdale’s inDubai is operated by Al Tayer Group LLC under a license agreement.

All statements in this press release that are not statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of Macy’s management and are subject to significant risks and uncertainties. Actual results could differ materially from those expressed in or implied by the forward-looking statements contained in this release because of a variety of factors, including conditions to, or changes in the timing of, proposed transactions, prevailing interest rates and non-recurring charges, competitive pressures from specialty stores, general merchandise stores, off-price and discount stores, manufacturers’ outlets, the Internet, mail-order catalogs and television shopping and general consumer spending levels, including the impact of the availability and level of consumer debt, the effect of weather and other factors identified in documents filed by the company with the Securities and Exchange Commission.

Contact:

Media:
Jim Sluzewski
513-579-7764

Investor:
Matt Stautberg
513-579-7780

Source: Macy’s, Inc.

Macy’s, Inc. announces two key senior executive changes

Peter Sachse named Chief Growth Officer;
Justin MacFarlane joins Macy’s, Inc. as Chief Strategy, Analytics and Innovation Officer

CINCINNATI, 2016-Feb-04 — /EPR Retail News/ — Macy’s, Inc. (NYSE:M) today announced two key senior executive changes as the company moves aggressively to grow its omnichannel business based on intensive insight into evolving consumer preferences and changing shopping patterns.

  • Peter Sachse, who has served over the past year as Chief Innovation and Business Development Officer, will assume a new role as Chief Growth Officer, reporting to Macy’s, Inc. President Jeff Gennette, effective immediately. In this position, Sachse will oversee all Macy’s merchandising, as well as Macy’s Backstage, Bluemercury and international expansion.Among Sachse’s direct reports will be Tim Baxter, Macy’s Chief Merchandising Officer, a member of the company’s executive committee who will continue to lead all omnichannel merchandising efforts and vendor relationships, as well as product and pricing strategies, with additional opportunity ahead as the company amplifies its product strategies across new customer touchpoints domestically and internationally. Also reporting to Sachse will be Marla Malcolm Beck, chief executive officer, and Barry Beck, chief operating officer, of Bluemercury, as well as Vanessa Lefebvre, senior vice president for Macy’s Backstage, and Dustin Jones, newly appointed managing director of Macy’s China Limited.
  • Justin S. MacFarlane has joined Macy’s effective today in the new position of Chief Strategy, Analytics and Innovation Officer, reporting to Gennette. He will be a member of the company’s executive committee. MacFarlane previously was senior vice president for corporate strategy at ANN INC. MacFarlane will be responsible for Macy’s strategic development, consumer and customer research, data analysis, innovation and the development of future new business opportunities.

“These two new positions will enable us to move farther and faster in stimulating profitable sales growth in our company. Each role is critical to our ability to position the company’s brands for success in a consumer marketplace that continues to evolve in profound new directions for omnichannel retailing,” said Terry J. Lundgren, chairman and chief executive officer of Macy’s, Inc.

“Peter Sachse now will lead the development of a holistic view of our businesses with expanded opportunities as we approach customers via stores, mobile and digital across Macy’s, Macy’s Backstage and Bluemercury,” Gennette said. “Justin MacFarlane will expand our capabilities in strategy development and execution while adding significant new expertise in our ongoing quest to understand and respond to consumer behavior, as well as analyze our deep reservoir of proprietary data about how, when, where and why customers are shopping – both today and as we look into the future.”

Bloomingdale’s remains a self-standing organization led by Tony Spring, chairman and chief executive officer, and reporting to Lundgren.

Executive Bios

Peter Sachse, 57, was named chief innovation and growth officer of Macy’s, Inc. in February 2015 after serving for three years as Macy’s chief stores officer. He previously was Macy’s chief marketing officer since February 2009, along with serving as chairman and CEO of macys.com since April 2006. He was president of Macy’s Corporate Marketing from 2003 to 2006. Prior to serving in these roles, Sachse was president and chief operating officer of The Bon Marché in Seattle. He began his retail career with Macy’s in Kansas City and was a division merchandise manager at Macy’s/Bullock’s in Atlanta. He was also executive vice president/general merchandise manager at Macy’s East and was later promoted to vice chair/director of stores of Macy’s East. A native of Sheboygan, WI, Sachse lives in the New York City area. He holds a degree from the University of Wisconsin.

Tim Baxter, 46, has served as Macy’s chief merchandising officer since February 2015 and previously was executive vice president and general merchandise manager for ready-to-wear since April 2013. For more than 24 years, he has served in a variety of merchant roles for Macy’s and The May Department Stores Company (acquired by Macy’s, Inc. in 2005). Baxter began his career as an executive trainee and assistant buyer at L.S. Ayres in Indianapolis in 1991 and has served in roles of increasing responsibility in a wide range of merchandising categories. He led Macy’s fashion office, multicultural business development and licensed business from March 2012 to April 2013. Baxter, a native of Toledo, Ohio, graduated from Miami University (Ohio). He lives in the New York City area.

Justin MacFarlane, 43, joined ANN INC. in 2010 as senior vice president for corporate strategy with responsibility for strategic planning, consumer insights and research, and execution of enterprise strategic initiatives. Previously, he served in a number of senior-level roles in leading consulting firms, including leadership roles in the global retail practices of AlixPartners and Kurt Salmon Associates. MacFarlane holds a bachelor’s degree from Babson Collegeand an MBA from Duke University. He lives in the New York City area.

Macy’s, Inc., with corporate offices in Cincinnati and New York, is one of the nation’s premier retailers, with fiscal 2014 sales of $28.015 billion. The company operates about 900 stores in 45 states, the District of Columbia, Guamand Puerto Rico under the names of Macy’s, Bloomingdale’s, Bloomingdale’s Outlet, Macy’s Backstage and Bluemercury, as well as the macys.com, bloomingdales.com and bluemercury.com websites. Bloomingdale’s inDubai is operated by Al Tayer Group LLC under a license agreement.

All statements in this press release that are not statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of Macy’s management and are subject to significant risks and uncertainties. Actual results could differ materially from those expressed in or implied by the forward-looking statements contained in this release because of a variety of factors, including conditions to, or changes in the timing of, proposed transactions, prevailing interest rates and non-recurring charges, competitive pressures from specialty stores, general merchandise stores, off-price and discount stores, manufacturers’ outlets, the Internet, mail-order catalogs and television shopping and general consumer spending levels, including the impact of the availability and level of consumer debt, the effect of weather and other factors identified in documents filed by the company with the Securities and Exchange Commission.

(Note: additional information on Macy’s, Inc., including past news releases, is available at www.macysinc.com/pressroom)

Source: Macy’s, Inc.

Macy’s, Inc.
Media – Jim Sluzewski, 513-579-7764
or
Investor – Matt Stautberg, 513-579-7780

Macy’s: Bloomingdale’s to open store in Kuwait in 2017 as part of its partnership with Al Tayer Group LLC

CINCINNATI, 2016-Jan-21 — /EPR Retail News/ — Macy’s, Inc. (NYSE:M) today announced that a Bloomingdale’s store is planned to open in spring 2017 in Kuwait as part of a strategic partnership with Al Tayer Group LLC, a leading UAE-based company with diversified business. This will be Bloomingdale’s second international location (the first opened in Dubai in 2010) and ahead of Macy’s and Bloomingdale’s stores scheduled to open in Abu Dhabi in 2018 – all in partnership with Al Tayer.

The 93,000-square-foot Bloomingdale’s store on three levels will be constructed to anchor 360 Mall in Al Zahra, one of the most upscale and successful commercial and residential areas of Kuwait. It will offer contemporary and designer women’s fashions, handbags, footwear and beauty products, as well as a restaurant and personalized shopping and concierge services. Construction begins in February 2016.

The store will offer an edited merchandise assortment, ambience and customer service similar to Bloomingdale’s shopping experience in the United States, while also being responsive to local preferences and customers. The store will be managed and operated by Al Tayer Insignia, a company of Al Tayer Group, under a license agreement with Macy’s, Inc. 360 Mall was developed and is owned by Tamdeen Group.

“Bloomingdale’s in Kuwait is another step forward in our strategy for capitalizing on the international potential of Macy’s and Bloomingdale’s, both of which are well-known retail brands around the world,” said Terry J. Lundgren, chairman and chief executive officer of Macy’s, Inc. “We are continuing to learn how best to translate these outstanding brands for our international customers, and we expect the new store in Kuwait to build on Bloomingdale’s experience and success in Dubai.”

“Kuwait is one of the world’s most sophisticated and upscale fashion markets, and Bloomingdale’s is excited to serve new and existing customers from Kuwait. We believe we will bring a new dimension in fashion and style for which Bloomingdale’s is known worldwide,” said Tony Spring, Bloomingdale’s chairman and chief executive officer. “This project also represents our latest step forward in an outstanding relationship with Al Tayer Group, which shares our dedication to quality and service. Together, we have made Bloomingdale’s Dubai location one of our most productive stores. We have similar high expectations for Kuwait.”

“Having launched the first international Bloomingdale’s store in Dubai almost six years ago, we are delighted to further extend our successful partnership with Macy’s Inc. with the launch of this new location in Kuwait. The 360 Mall in Kuwait provides us with the perfect location for this landmark introduction,” said Khalid Al Tayer, CEO – Retail,Al Tayer Group. “We will bring a proposition that is uniquely tailored to the needs of the market, with concepts and innovations that we are certain will delight the customers in Kuwait.”

Macy’s, Inc., with corporate offices in Cincinnati and New York, is one of the nation’s premier retailers, with fiscal 2014 sales of $28.015 billion. The company operates about 900 stores in 45 states, the District of Columbia, Guamand Puerto Rico under the names of Macy’s, Bloomingdale’s, Bloomingdale’s Outlet, Macy’s Backstage and Bluemercury, as well as the macys.com, bloomingdales.com and bluemercury.com websites. Bloomingdale’s inDubai is operated by Al Tayer Group LLC under a license agreement.

All statements in this press release that are not statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of Macy’s management and are subject to significant risks and uncertainties. Actual results could differ materially from those expressed in or implied by the forward-looking statements contained in this release because of a variety of factors, including conditions to, or changes in the timing of, proposed transactions, prevailing interest rates and non-recurring charges, competitive pressures from specialty stores, general merchandise stores, off-price and discount stores, manufacturers’ outlets, the Internet, mail-order catalogs and television shopping and general consumer spending levels, including the impact of the availability and level of consumer debt, the effect of weather and other factors identified in documents filed by the company with the Securities and Exchange Commission.

(Note: additional information on Macy’s, Inc., including past news releases, is available at www.macysinc.com/pressroom).

Source: Macy’s, Inc.

Macy’s, Inc.
Media
Jim Sluzewski, 513-579-7764
or
Investors
Matt Stautberg, 513-579-7780

Macy’s, Inc. to reduce SG&A expense by $400 million while still investing in growth strategies

CINCINNATI, 2016-1-7 — /EPR Retail News/ — Macy’s, Inc. (NYSE:M) today announced a series of cost-efficiency and process improvement measures to be implemented beginning in early 2016 that will reduce SG&A expense by approximately $400 million while still investing in growth strategies, particularly in omnichannel capabilities at Macy’s and Bloomingdale’s. The actions represent progress toward the company’s previously stated goal of re-attaining over time an EBITDA rate as a percent of sales of 14 percent.

(Editor’s Note: Macy’s, Inc. this afternoon also issued a separate news release announcing sales results for the November/December 2015 period and updating guidance.)

“In light of our disappointing 2015 sales and earnings performance, we are making adjustments to become more efficient and productive in our operations. Moreover, we believe we can operate more effectively with an organization that is flatter and more agile so we can pursue growth and regain market share in our core Macy’s and Bloomingdale’s omnichannel businesses faster and with more intensity. We will continue to invest in strategic initiatives that anticipate emerging customer needs and create shareholder value,” said Terry J. Lundgren, chairman and chief executive officer of Macy’s, Inc. “The cost efficiencies represent more than two-thirds of our goal of annual SG&A expense reduction of $500 million, net of growth initiatives, from previously planned levels by 2018. In some cases, there will be short-term pain as we tighten our belt and realign our resources. But our eye is on a long-term vision of Macy’s, Inc. as a dynamic retailer that serves existing customers and acquires new ones through innovative approaches to the marketplace.”

To address the need for greater efficiency and productivity, among the changes being implemented by Macy’s, Inc. in early 2016 are:

  • Consolidating the grouping of existing Macy’s stores into five regions and 47 local districts (down from the current structure of seven regions and 58 local districts), as well as other field support functions. This reflects a smaller portfolio of stores and new technologies and techniques for managing the store business and tailoring assortments to local customer preferences.
  • Adjusting staffing levels at each Macy’s and Bloomingdale’s store in line with current sales volume to increase productivity and improve efficiency. An average of three to four positions will be affected in each of Macy’s and Bloomingdale’s approximately 770 going-forward stores (out of an average workforce of approximately 150 associates in each store), for a total of about 3,000 affected associates nationwide. Roughly 50 percent of affected store associates are expected to be placed in other positions.
  • Implementing a voluntary separation opportunity for about 165 senior executives in Macy’s and Bloomingdale’s central stores, office and support functions who meet certain age and service requirements and chose to leave the company beginning in spring 2016. Approximately 35 percent of these executive positions will not be replaced.
  • Reducing an additional 600 positions in back-office organizations by eliminating tasks, simplifying processes and combining positions, with about 150 of these associates reassigned to other positions.
  • Consolidating the four existing Macy’s, Inc. credit and customer services center facilities into three. The call center in St. Louis will be closed in spring 2016, affecting approximately 750 employees. Work currently performed in St. Louis will be divided among existing credit and customer services centers in Tempe, AZ, Clearwater, FL, andMason, OH, where a total of about 640 positions will be added.
  • Decreasing non-payroll budgets companywide in areas such as travel, meetings and consulting services.

Real Estate

The company continues to pursue the creation of shareholder value through real estate initiatives originally announced on Nov. 11, 2015, and provides the following updates:

  • Eastdil Secured, a leading real estate-focused investment bank, has been engaged by Macy’s, Inc. to approach potential interested parties, with assistance from Credit Suisse and Goldman Sachs, regarding forming partnerships or joint venture(s) for the company’s mall-based properties, as well as Macy’s flagship real estate assets in Manhattan, San Francisco, Chicago and Minneapolis. Eastdil joins a team of experienced advisors in banking, real estate, law and tax who are focused on monetizing real estate assets in a manner consistent with Macy’s overall strategy. Tishman Speyer has expressed interest in pursuing partnerships on the four flagship locations and, thus, will not be advising the company on those properties. Tishman Speyer will, however, continue to advise Macy’s on potential opportunities for maximizing the value of other real estate in the company’s portfolio.
  • The company has begun a search for a senior-level real estate executive to join the company to oversee and manage real estate activities, including the leadership of any partnerships or joint ventures.

Store Closings/Openings

The company today listed 40 Macy’s store closings (out of a current total of about 770 Macy’s stores). Of the 40, 36 will be closed in early spring 2016, consistent with its announcement in September 2015. The other four stores were closed in the final three quarters of 2015, as previously announced. (A list of planned store closings, as well as openings, is included at the end of this news release.)

“Our company is committed to operating great Macy’s and Bloomingdale’s stores in the best locations – both to serve shoppers who walk through the door and to fulfill orders that are shipped directly to customers around the country,” Lundgren said. “In today’s rapidly evolving retail environment, it is essential that we maintain a portfolio of the right stores in the right places. So we will continue to add stores selectively while also being disciplined about closing stores that are unproductive or no longer robust shopping destinations because of changes in the local retail shopping landscape.”

The 36 Macy’s stores being closed in early 2016, along with four others closed in the final three quarters of 2015, account for approximately $375 million in annual sales, some of which are expected to be retained in nearby stores and with online/mobile sales.

The company is committed to treating associates affected by store closings with respect and openness. Associates displaced by store closings may be offered positions in nearby stores where possible. Eligible full-time and part-time associates who are laid off due to the store closings will be offered severance benefits.

Financial Impact

The implementation of cost reductions is estimated to generate annual SG&A savings of approximately $400 million, beginning in 2016. This will help the company to achieve modest improvement in its EBITDA rate (as a percent to sales) in 2016 compared with 2015 excluding gains from the expected sale of real estate in Brooklyn – while still investing in growth strategies, particularly in omnichannel capability at Macy’s and Bloomingdale’s.

In conjunction with today’s announcements, as well as incremental asset impairment charges related to store closings, approximately $200 million of charges, of which approximately $165 million is expected to be cash, are expected to be booked in the fourth quarter of 2015. These charges were not previously included in earnings guidance provided by the company and are in addition to the $111 million, or 20 cents per share, booked in the third quarter as an estimate of asset impairment charges related to 2016 store closings.

Macy’s, Inc., with corporate offices in Cincinnati and New York, is one of the nation’s premier retailers, with fiscal 2014 sales of $28.015 billion. The company operates about 900 stores in 45 states, the District of Columbia, Guamand Puerto Rico under the names of Macy’s, Bloomingdale’s, Bloomingdale’s Outlet, Macy’s Backstage and Bluemercury, as well as the macys.com, bloomingdales.com and bluemercury.com websites. Bloomingdale’s inDubai is operated by Al Tayer Group LLC under a license agreement.

All statements in this press release that are not statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of Macy’s management and are subject to significant risks and uncertainties. Actual results could differ materially from those expressed in or implied by the forward-looking statements contained in this release because of a variety of factors, including conditions to, or changes in the timing of, proposed store closings, store openings or other transactions, changes in the conditions of the securities markets, particularly the markets for debt securities and other factors identified in documents filed by Macy’s with the Securities and Exchange Commission.

(NOTE: Additional information on Macy’s, Inc., including past news releases, is available at www.macysinc.com/pressroom).

Macy’s Store Closings

Final clearance sales at the following Macy’s stores closing in early 2016 will begin on Monday, Jan. 11 and run for between eight to 12 weeks (with the exception of Westfield Century City, North DeKalb Mall and Roseburg Valley Mall, where final clearance sales are already in progress):

  • Irvine Spectrum, Irvine, CA (140,000 square feet; opened in 2002; 112 associates);
  • Country Club Plaza, Sacramento, CA (165,000 square feet; opened in 1961; 111 associates);
  • Westfield Century City, Los Angeles, CA (136,000 square feet; opened in 1976; 108 associates). Note that this store will be closed in January 2016 and replaced with a new, larger store to open in this same shopping center in spring 2017;
  • Enfield Square main store, Enfield, CT (166,000 square feet; opened in 1971; 84 associates);
  • Enfield Square furniture/home/men’s store, Enfield, CT (76,000 square feet; opened in 1971; 20 associates);
  • North DeKalb Mall, Decatur, GA (190,000 square feet; opened in 1965; 89 associates);
  • Kailua, HI (59,000 square feet; opened in 1946; 57 associates);
  • Palouse Mall, Moscow, ID (41,000 square feet; opened in 1979; 47 associates);
  • Northwoods Mall, Peoria, IL (165,000 square feet; opened in 1985; 62 associates);
  • Cortana Mall, Baton Rouge, LA (243,000 square feet; opened in 1976; 108 associates);
  • Valley Mall, Hagerstown, MD (120,000 square feet; opened in 1999; 59 associates);
  • Berkshire Mall, Lanesborough, MA (111,000 square feet; opened in 1994; 58 associates);
  • Eastfield Mall, Springfield, MA (127,000 square feet; opened in 1994; 71 associates);
  • The Shoppes at Stadium, Columbia, MO (140,000 square feet; opened in 2003; 81 associates);
  • Middlesex Mall, South Plainfield, NJ (81,000 square feet; opened in 1976; 69 associates);
  • McKinley Mall main store, Buffalo, NY (88,000 square feet; opened in 1989; 65 associates);
  • McKinley Mall home store, Buffalo, NY (31,000 Square feet; opened in 1989; 10 associates);
  • Arnot Mall, Horsehead, NY (120,000 square feet; opened in 1995; 79 associates);
  • Hudson Valley Mall, Kingston, NY (121,000 square feet; opened in 1995; 72 associates);
  • Eastern Hills Mall, Williamsville, NY (127,000 square feet; opened in 1971; 80 associates);
  • Cary Towne Center, Cary, NC (107,000 square feet; opened in 1991; 63 associates);
  • Chapel Hill Mall, Akron, OH (169,000 square feet; opened in 1967; 91 associates);
  • Midway Mall, Elyria, OH (105,000 square feet; opened in 1990; 64 associates);
  • Quail Springs Mall, Oklahoma City, OK (146,000 square feet; opened in 1986; 87 associates);
  • Pony Village Mall, North Bend, OR (41,000 square feet; opened in 1980; 54 associates);
  • Roseburg Valley Mall, Roseburg, OR (40,000 square feet; opened in 1980; 59 associates);
  • Suburban Square, Ardmore, PA (102,000 square feet; opened in 1930; 74 associates);
  • Century III Mall, West Mifflin, PA (173,000 square feet; opened in 1979; 101 associates);
  • Ridgmar Mall, Ft. Worth, TX (181,000 square feet; opened in 1998; 92 associates);
  • Chesapeake Square, Chesapeake, VA (95,000 square feet; opened in 1999; 69 associates);
  • Virginia Center Commons, Glen Allen, VA (110,000 square feet; opened in 1993; 81 associates);
  • Peninsula Town Center, Hampton, VA (173,000 square feet; opened in 1977; 109 associates);
  • Military Circle Mall, Norfolk, VA (153,000 square feet; opened in 1976; 95 associates);
  • Regency Square main store, Richmond, VA (100,000 square feet; opened in 1990; 100 associates);
  • Regency Square furniture/home/men’s store, Richmond, VA (124,000 square feet; opened in 1990; 35 associates);
  • Downtown Spokane, Spokane, WA (374,000 square feet; opened in 1947; 94 associates).

Macy’s stores closed in the final three quarters of 2015 (previously announced):

  • Owings Mills Mall, Owings Mills, MD (164,000 square feet; opened in 1986; 90 associates);
  • Bedford, NH (180,000 square feet; opened in 1966; 105 associates);
  • Essex Green Shopping Center, West Orange, NJ (93,000 square feet; opened in 1975; 101 associates). Note that this location was converted to a Macy’s Backstage store.
  • Downtown Pittsburgh, PA (1,158,000 square feet; opened in 1946; 170 associates).

Store Openings

Five new Macy’s and Bloomingdale’s stores are currently planned and/or under construction, as previously announced.

New Macy’s stores will be opening in:

  • Ka Makana Ali’i, Kapolei, HI (103,000 square feet; to open in fall 2016; approximately 180 associates).
  • Westfield Century City, Los Angeles, CA (a 155,000 square-foot store to open in spring 2017 to replace an older and smaller Macy’s store in this very successful shopping center).
  • Fashion Place, Murray, UT (160,000 square feet; to open in spring 2017; approximately 150 associates).

New Bloomingdale’s stores will be opening in:

  • Westfield Valley Fair Shopping Center, San Jose, CA (150,000 square feet; to open in fall 2017; approximately 250 associates).
  • The SoNo Collection, Norwalk, CT (150,000 square feet; to open in fall 2018; approximately 200 associates).

In addition, in the next two years, the company plans to open about 50 additional Macy’s Backstage off-price locations (most of which will be inside existing Macy’s stores), and about 40 freestanding Bluemercury beauty specialty stores.

Internationally, new Macy’s and Bloomingdale’s stores are planned to open in Al Maryah Central in Abu Dhabi, United Arab Emirates, in 2018 under license agreements with Al Tayer Group.

Source: Macy’s, Inc.

Macy’s, Inc.
Media – Jim Sluzewski, 513-579-7764
or
Investor – Matt Stautberg, 513-579-7780

Macy’s, Inc. Q3: Spending by domestic customers remained tepid, especially in key apparel and accessory categories

Company updates guidance, outlines strategy on real estate

CINCINNATI, 2015-11-12 — /EPR Retail News/ — Macy’s, Inc. (NYSE:M) today reported earnings per share of 36 cents in the third quarter of 2015, ended Oct. 31, 2015. Excluding asset impairment charges of $111 million, or 20 cents per share, primarily related to the previously-announced plans to close 35 to 40 stores in early 2016, third quarter earnings per share were 56 cents per share. This compares with 61 cents per diluted share in the third quarter of 2014.

(Editor’s Note: This morning, Macy’s, Inc and Luxottica Group also issued a separate news release announcing an agreement to open licensed LensCrafters departments in as many as 500 Macy’s stores.)

For the first three quarters of 2015, Macy’s, Inc.’s diluted earnings per share were $1.56. Excluding asset impairment charges of $111 million, or 20 cents per share, primarily related to planned 2016 store closings, year-to-date earnings per diluted share were $1.76. This compares with earnings of $2.01 per diluted share in the first three quarters of 2014.

“We are disappointed that the pace of sales did not improve in the third quarter, as we had expected. Spending by domestic customers remained tepid, especially in key apparel and accessory categories. Simultaneously, the slowdown in buying by international visitors continued to significantly impact Macy’s and Bloomingdale’s stores in tourist centers, which are some of our company’s largest-volume and most profitable locations,” said Terry J. Lundgren, chairman and chief executive officer of Macy’s, Inc.

“We have begun testing and learning from new sales growth initiatives that we believe will begin yielding incremental results in the quarters and years ahead. This included the opening of the first five Macy’s Backstage off-price stores in the New York City metro area (with a sixth opening planned in the fourth quarter),” Lundgren said.

“Heading into the fourth quarter, we are shifting our organization into overdrive to focus on sales-driving activities in the holiday shopping season, when Macy’s and Bloomingdale’s shine as destinations for gift-giving and self-purchase,” he added. “We also will be opening stores in several of our nameplates in the fourth quarter, including a new Bloomingdale’s at Ala Moana in Honolulu.”

“Moving forward, we are accelerating steps needed to adapt in response to changing customer shopping preferences so we can restore our annual comparable sales growth on an owned plus licensed basis in the years ahead to the level of 2 percent to 3 percent while re-attaining an EBITDA rate as percent of sales of 14 percent. This includes building on our strength as a leading omnichannel innovator with consistent growth in online sales,” Lundgren said. “No other retailer has our track record of mastering change and creating shareholder value with a model of customer centricity. We have a deep and resourceful management team that is skilled in creating and executing successful strategies. Since the beginning of fiscal 2009, we have returned nearly $9 billion to shareholders. Our Total Shareholder Return has been 540 percent during that period, compared with a 121 percent increase in the Dow Jones Industrial Average.”

Real Estate Considerations

Macy’s, Inc. is pursuing the following strategic real estate initiatives:

  • Based on a successful collaboration on Macy’s previously announced Brooklyn store redevelopment project, the company has engaged Tishman Speyer in an expanded relationship to advise and support the company’s senior management team in identifying and advancing potential store redevelopment projects nationwide. The company may request Tishman Speyer to participate in bidding for certain of these projects. In all cases, a third party will be used to manage the bidding and negotiations process.
  • The company has begun a process to explore joint ventures or other deal structures with third parties to redevelop Macy’s flagship real estate assets in Manhattan (Herald Square), San Francisco (Union Square), Chicago (State Street) and Minneapolis (downtown Nicollet Mall) in a manner that maintains a robust Macy’s retail store presence while also bringing alternative use into those buildings; this exploration could expand to include other assets, including mall-based properties, to the extent opportunities are available.
  • The company will continue to pursue selected real estate dispositions and monetize assets in instances where the business is simultaneously enhanced (such as the recently announced real estate sales of underutilized portions of properties in Brooklyn and downtown Seattle) or where the value of real estate significantly outweighs the value of the retail business (such as the recent sale of Macy’s stores in Cupertino and downtown Pittsburgh).

After extensive review with the assistance of our experienced financial, tax, legal and real estate advisors, the company has decided not to pursue the formation of a REIT at this time. The board of directors has concluded that a REIT does not offer sufficient upside potential for value creation. To the extent that circumstances change, we may revisit this alternative in the future.

While much work has been done to date, Macy’s, Inc. is continuing to analyze its real estate portfolio to identify opportunities to drive additional shareholder value. The company is open to considering additional ideas for further enhancing shareholder value while maintaining an investment-grade credit rating and an operating structure that fosters sales and earnings growth.

Ongoing Business Strategies/Actions

Macy’s, Inc. is continuing to execute a number of key strategies and actions going forward to adapt its business model as an omnichannel retailer committed to outstanding stores as a competitive differentiator. These adjustments are rooted in Macy’s MOM strategies (My Macy’s localization, Omnichannel and Magic Selling customer engagement) and Bloomingdale’s focus on omnichannel opportunities, contemporary style and personalized service — which have proven to be a powerful driver of success. In part, the company is:

  • Accelerating investments in Macy’s, Bloomingdale’s and Bluemercury’s digital and mobile capabilities to mirror the shift to increased online shopping, where the company continues to see double-digit, year-over-year sales increases. Macy’s, Inc. is already a leader in this area, and ranked as the seventh largest Internet retailer in the United States.
  • Concentrating its resources in top stores in the best locations so each store is a more compelling magnet for customer activity and uses its selling space more productively. Best stores will see intensified merchandise assortments in key destination departments such as jewelry and watches, strategically selected licensed departments, strengthened visual presentation, enhanced staffing and more local marketing. Meanwhile, in early 2016, the company will be closing 35 to 40 of its current portfolio of about 800 Macy’s and Bloomingdale’s stores, as previously announced, and expects it will continue to reduce the number of stores over time.
  • Reducing expense and tightening capital spending to operate more efficiently and fund the highest-potential growth initiatives. Macy’s, Inc.’s target is to reduce annual SG&A by $500 million (net of growth initiatives) from previously planned levels by 2018, with incremental progress in 2016 and 2017 toward that goal. These structural expense reductions will result in charges to be taken in each of the three years. Specific plans to achieve these savings are being formulated. Macy’s, Inc. will reduce capital spending to less than $1 billion in 2016 from the $1.2 billionexpected in 2015.

The company also is quickly building-out new directions for the longer-term future:

  • Expand Macy’s Backstage as an exciting new dimension in retailing across America. Over the next two years, the company will roll out about 50 free-standing Macy’s Backstage stores in off-mall locations, building on the pilot launch this fall. In addition, in spring 2016 the company will pilot Backstage stores within up to 10 existing Macy’s store locations, creating a new hybrid store (the first in retailing) that offers the latest fashions, outstanding service and major brands for which Macy’s is known, along with the thrill of the hunt associated with the finds and bargains at Backstage.
  • Open approximately 40 additional Bluemercury self-standing beauty specialty stores (bringing the total store base to approximately 115 by the end of 2017), while also integrating Bluemercury shops into the beauty departments of Macy’s stores.
  • Appropriately expand Macy’s internationally based on the learnings we expect from the Macy’s China Limited pilot with Alibaba’s Tmall Global beginning in the fourth quarter.

Third Quarter Sales

Sales in the third quarter of 2015 totaled $5.874 billion, a decrease of 5.2 percent, compared with sales of $6.195 billion in the same period last year. Comparable sales on an owned plus licensed basis were down by 3.6 percent in the third quarter. On an owned basis, third quarter comparable sales declined by 3.9 percent.

For the year to date, Macy’s, Inc. sales totaled $18.210 billion, down 2.8 percent from total sales of $18.741 billion in the first three quarters of 2014. Comparable sales on an owned plus licensed basis were down by 1.7 percent year-to-date in 2015. On an owned basis, year-to-date comparable sales declined by 2.2 percent.

In the third quarter, the company opened a new Macy’s store in Ponce, PR, five Macy’s Backstage stores in metroNew York City, and 10 new Bluemercury freestanding specialty stores. The company closed Macy’s stores inBedford, NH, and Owings Mills, MD. In the fourth quarter, scheduled store openings include a full-line Bloomingdale’s in Honolulu, three Bloomingdale’s Outlets, and one Macy’s Backstage. A Macy’s store in Los Angeles, is scheduled to close in the fourth quarter of 2015 in preparation for a new store to be built in the same mall.

Operating Income

Macy’s, Inc.’s third quarter 2015 operating income was $369 million or 6.3 percent of sales, excluding asset impairment charges of $111 million primarily related to previously-announced plans to close 35 to 40 stores in early 2016. This compares with operating income of $422 million or 6.8 percent of sales for the same period last year. Macy’s, Inc.’s operating income including the asset impairment charges totaled $258 million or 4.4 percent of sales for the quarter ended Oct. 31, 2015.

For the first three quarters of 2015, Macy’s, Inc.’s operating income was $1.214 billion or 6.7 percent of sales, excluding asset impairment charges of $111 million primarily related to previously-announced store closings. This compares with operating income of $1.436 billion or 7.7 percent of sales for the same period last year. Macy’s, Inc.’s year-to-date 2015 operating income including the asset impairment charges totaled $1.103 billion or 6.1 percent of sales.

Cash Flow

Net cash provided by operating activities was $278 million in the first three quarters of 2015, compared with $841 million in the first three quarters of 2014. Net cash used by investing activities in the first three quarters of 2015 was$861 million, compared with $660 million a year ago. Investing activities in year-to-date 2015 included $212 million for the acquisition of Bluemercury. Net cash used by financing activities in the first three quarters of 2015 was $1.189 billion, compared with net cash used by financing activities in the first three quarters of 2014 of $1.406 billion.

The company repurchased approximately 16.7 million shares of its common stock for a total of approximately $900 million in the third quarter of 2015. In the fiscal year to date, the company repurchased approximately 30.6 million shares of its common stock for approximately $1.84 billion. At Oct. 31, 2015, the company had remaining authorization to repurchase up to approximately $700 million of its common stock.

Updated Guidance

The company has revised its 2015 guidance. Earnings per diluted share for the full-year 2015 now are expected in the range of $4.20 to $4.30, excluding asset impairment charges associated primarily with previously announced store closings. This compares with previous guidance in the range of $4.70 to $4.80. Updated annual guidance calculates to guidance for fourth quarter earnings of $2.54 to $2.64 per diluted share, excluding any additional charges associated with store closings or cost reductions. Earnings guidance for 2015 includes gains from asset sales, including approximately $60 million from the sale of real estate in Seattle and an expected $250 million gain on the sale of real estate in downtown Brooklyn.

Guidance is for full-year 2015 comparable sales on an owned plus licensed basis to decrease by 1.8 percent to 2.2 percent, compared with previous guidance of approximately flat. This calculates to fourth quarter comparable sales on an owned plus licensed basis to decline by 2.0 percent to 3.0 percent. Full-year and fourth quarter 2015 comparable sales on an owned basis will be approximately 50 basis points lower than on an owned plus licensed basis. The company expects 2015 total sales to be down by 2.7 percent to 3.1 percent, compared to previous guidance for total sales to be down approximately 1 percent.

Important Information Regarding Financial Measures

Please see the final pages of this news release for important information regarding the calculation of the company’s comparable sales and non-GAAP financial measures.

Macy’s, Inc., with corporate offices in Cincinnati and New York, is one of the nation’s premier retailers, with fiscal 2014 sales of $28.105 billion. The company operates about 900 stores in 45 states, the District of Columbia, Guamand Puerto Rico under the names of Macy’s, Bloomingdale’s, Bloomingdale’s Outlet, Macy’s Backstage and Bluemercury, as well as the macys.com, bloomingdales.com and bluemercury.com websites. Bloomingdale’s inDubai is operated by Al Tayer Group LLC under a license agreement.

All statements in this press release that are not statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of Macy’s management and are subject to significant risks and uncertainties. Actual results could differ materially from those expressed in or implied by the forward-looking statements contained in this release because of a variety of factors, including conditions to, or changes in the timing of, proposed transactions, prevailing interest rates and non-recurring charges, competitive pressures from specialty stores, general merchandise stores, off-price and discount stores, manufacturers’ outlets, the Internet, mail-order catalogs and television shopping and general consumer spending levels, including the impact of the availability and level of consumer debt, the effect of weather and other factors identified in documents filed by the company with the Securities and Exchange Commission. In light of these risks and uncertainties, readers are cautioned not to place undue reliance on forward-looking statements. Except as may be required by applicable law, Macy’s disclaims any obligation to update its forward-looking statements for any reason.

(NOTE: Additional information on Macy’s, Inc., including past news releases, is available at www.macysinc.com/pressroom. A webcast of Macy’s, Inc.’s call with analysts and investors will be held today (Nov. 11) at 9 a.m. (ET). Macy’s, Inc.’s webcast is accessible to the media and general public via the company’s website at www.macysinc.com. Analysts and investors may call in on 1-888-637-7746, passcode 3336328. A replay of the conference call can be accessed on the website or by calling 1-888-203-1112 (same passcode) about two hours after the conclusion of the call.)

Macy’s, Inc. management will present at the Morgan Stanley Global Consumer & Retail Conference at 10 a.m. Eastern Time on Wednesday, Nov. 18, 2015, in New York City. Media and investors may access the live webcast of the presentation at www.macysinc.com/ir at that time. The webcasts will be available for replay.

Source: Macy’s, Inc.

Macy’s, Inc.
Media – Jim Sluzewski, 513-579-7764
Investor – Matt Stautberg, 513-579-7780

Frank Blake elected to Macy’s, Inc. Board of Directors

CINCINNATI, 2015-11-12 — /EPR Retail News/ — Frank Blake, recently former chairman and chief executive officer of The Home Depot, has been elected to the Macy’s, Inc. (NYSE:M) Board of Directors. Blake’s election increases the size of the board to 14 members.

Blake, 66, was named Home Depot’s chairman and chief executive officer in 2007 and served in that capacity until retiring as CEO in November 2014 and as chairman in February 2015. He joined Home Depot in 2002 as executive vice president for business development and corporate operations, with responsibility for real estate, store construction, credit services, strategic business development, growth initiatives, call centers and the home services business.

“Frank Blake is an outstanding addition to Macy’s, Inc.’s board, which is one of the strongest and most diverse in our industry,” said Terry J. Lundgren, chairman and chief executive officer of Macy’s, Inc. “Frank has deep operating experience and will be helpful as we seek continuous improvement in execution, especially in our stores organization. At Home Depot, he created a service culture and stressed employee engagement in leading one of America’s largest retailers through a period of exceptional growth and success. Moreover, he is deeply experienced in corporate governance and the management of large and complex organizations. We look forward to his guidance and counsel as Macy’s, Inc. pursues new directions in serving customers at a time of evolving shopping preferences and patterns.”

Prior to joining The Home Depot, Blake served as deputy secretary of the U.S. Department of Energy, where he managed operations, led policy decisions and oversaw a $19 billion budget. Previously, he served in a series of senior roles at General Electric, including senior vice president for corporate development and general counsel of GE Power Systems. Earlier in his career, Blake served as general counsel to the U.S. Environmental Protection Agencyand deputy counsel to Vice President George H.W. Bush.

Blake received his bachelor’s degree from Harvard University and a law degree from Columbia University Law School.

Dividend Declared

The board of directors of Macy’s, Inc. today declared a regular quarterly dividend of 36 cents per share on Macy’scommon stock, payable Jan. 4, 2016, to shareholders of record at the close of business on Dec. 15, 2015.

Macy’s, Inc., with corporate offices in Cincinnati and New York, is one of the nation’s premier retailers, with fiscal 2014 sales of $28.105 billion. The company operates approximately 900 stores in 45 states, the District of Columbia,Guam and Puerto Rico under the names of Macy’s, Bloomingdale’s, Bloomingdale’s Outlet, Macy’s Backstage and Bluemercury, as well as the macys.com, bloomingdales.com and bluemercury.com websites. Bloomingdale’s inDubai is operated by Al Tayer Group LLC under a license agreement.

All statements in this press release that are not statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of Macy’s management and are subject to significant risks and uncertainties. Actual results could differ materially from those expressed in or implied by the forward-looking statements contained in this release because of a variety of factors, including conditions to, or changes in the timing of, proposed transactions, prevailing interest rates and non-recurring charges, competitive pressures from specialty stores, general merchandise stores, off-price and discount stores, manufacturers’ outlets, the Internet, mail-order catalogs and television shopping and general consumer spending levels, including the impact of the availability and level of consumer debt, the effect of weather and other factors identified in documents filed by the company with the Securities and Exchange Commission.

(NOTE: Additional information on Macy’s, Inc., including past news releases, is available at www.macysinc.com/pressroom)

Source: Macy’s, Inc.

Macy’s, Inc.
Media – Jim Sluzewski, 513-579-7764
or
Investor – Matt Stautberg, 513-579-7780

Macy’s, Inc. sells the top four floors of its downtown Seattle store to controlled affiliate of Starwood Capital Group

CINCINNATI, 2015-10-12 — /EPR Retail News/ — Macy’s, Inc. (NYSE:M) today announced it has sold the top four floors (levels five through eight) of underutilized space in its downtown Seattle store, located at 300 Pine Street, to a controlled affiliate of Starwood Capital Group to be converted to office use.

The Macy’s store will remain open and operating, with space reconfigured by fall 2016 to accommodate all existing merchandise categories in a more efficient manner. Selling space will be reduced from 363,000 square feet on seven floors (the lower level plus floors one through six) to 283,000 square feet on five floors (the lower level plus floors one through four).

“Macy’s on Pine Street is a very successful business serving a thriving community of downtown residents and workers,” said Terry J. Lundgren, Macy’s, Inc. chairman and chief executive officer. “Our vision is to make the store easier and quicker to navigate while also attracting new jobs and economic activity to space that has not been fully utilized in recent years. While there will be some construction activity inside the store over the next year, we expect to continue to serve customers without interruption.

“This transaction is an example of the company’s ongoing efforts to enhance shareholder value by identifying and pursuing strategic real estate dispositions while maintaining the flexibility we require to run a successful business,” he added.

Macy’s 265 current downtown store associates will remain in place, although some may be reassigned as departments are respaced.

Macy’s downtown Seattle building, with a total of 864,000 square feet, was opened in 1929 as The Bon Marche. The nameplate converted to Macy’s in September 2006.

The purchase price for the four floors, totaling more than 300,000 square feet, was $65 million in cash. Macy’s, Inc. will record a gain of approximately $60 million in the third quarter of 2015. The gain was originally anticipated and included in 2015 earnings guidance previously provided by the company although it is being booked a quarter earlier than expected.

About Starwood Capital Group
Starwood Capital Group is a private investment firm with a core focus on global real estate. Headquartered inGreenwich, CT, the firm maintains 10 offices in four countries around the world, and currently has more than 1,400 employees. Starwood Capital Group has raised approximately $32 billion of equity capital since its inception in 1991, and currently manages over $45 billion in assets. The Firm has invested in virtually every category of real estate on a global basis, opportunistically shifting asset classes, geographies and positions in the capital stack as it perceives risk-reward dynamics to be evolving. For more than two decades, Starwood Capital Group and its affiliates have successfully executed an investment strategy that involves building enterprises around real estate portfolios in both the private and public markets. Additional information can be found at starwoodcapital.com

About Macy’s, Inc.
Macy’s, Inc., with corporate offices in Cincinnati and New York, is one of the nation’s premier retailers, with fiscal 2014 sales of $28.105 billion. The company operates about 885 stores in 45 states, the District of Columbia, Guamand Puerto Rico under the names of Macy’s, Bloomingdale’s, Bloomingdale’s Outlet, Macy’s Backstage and Bluemercury, as well as the macys.com, bloomingdales.com and bluemercury.com websites. Bloomingdale’s inDubai is operated by Al Tayer Group LLC under a license agreement.

All statements in this press release that are not statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of Macy’s management and are subject to significant risks and uncertainties. Actual results could differ materially from those expressed in or implied by the forward-looking statements contained in this release because of a variety of factors, including conditions to, or changes in the timing of, proposed transactions, prevailing interest rates and non-recurring charges, competitive pressures from specialty stores, general merchandise stores, off-price and discount stores, manufacturers’ outlets, the Internet, mail-order catalogs and television shopping and general consumer spending levels, including the impact of the availability and level of consumer debt, the effect of weather and other factors identified in documents filed by the company with the Securities and Exchange Commission.

(NOTE: Additional information on Macy’s, Inc., including past news releases, is available at www.macysinc.com/pressroom).

Source: Macy’s, Inc.

Macy’s, Inc.
Media:
Jim Sluzewski, 513-579-7764
Betsy Nelson, 415-393-3819
or
Investor:
Matt Stautberg, 513-579-7780

Macy’s plans to hire seasonal associates for approximately 85,000 positions for the 2015 Christmas and holiday season

CINCINNATI, 2015-9-22 — /EPR Retail News/ — Macy’s, Inc. (NYSE:M) today said it plans to hire seasonal associates for approximately 85,000 positions at its Macy’s and Bloomingdale’s stores, call centers, distribution centers and online fulfillment centers nationwide for the 2015 Christmas and holiday season. The company’s 2015 seasonal hiring plan is essentially flat to last year.

“Macy’s and Bloomingdale’s customers have come to appreciate the higher level of our staffing and service throughout the Christmas and holiday shopping season, and our associates love the employment and income-earning opportunities at this very special time of the year,” said Terry J. Lundgren, Macy’s, Inc. chairman and chief executive officer. “We first offer our current associates the opportunity to work extra hours over the holidays, then supplement our ongoing workforce with seasonal hires. This enhanced staffing allows us to provide additional help to customers, whether they are shopping in stores or online.”

Seasonal associates at Macy’s and Bloomingdale’s serve customers on the selling floor, work in store operations positions, interact with customers via call centers, and staff the distribution and fulfillment centers that coordinate shipments to stores and directly to customers who buy online or via mobile. Macy’s, Inc. is one of America’s largest online retailers.

Macy’s, Inc.’s 2015 seasonal hiring plan includes the following:

  • Approximately 12,000 of the 85,000 total seasonal positions will be based in direct-to-consumer fulfillment facilities that support sales generated by the company’s omnichannel business strategy. These positions are located in megacenters in Goodyear, AZ; Cheshire, CT; Tulsa, OK; Portland, TN, and Martinsburg, WV, and well as in product-specific fulfillment centers in Sacramento, CA, Stone Mountain, GA, Secaucus, NJ, and Joppa, MD.
  • About 1,600 associates will be hired to interact with customers via telephone, email and online chat at customer service centers in Mason, Ohio; Clearwater, FL; Tempe, AZ; and St. Louis, MO.
  • More than 1,000 persons will be hired across the country to support the 88th annual Macy’s Thanksgiving DayParade, Santalands and other iconic holiday events.

“These seasonal positions represent much-needed jobs for America, and they fill an important niche in the employment spectrum. Especially at the holidays, we employ students working during break to help pay tuition, retirees seeking to remain active and individuals from many walks of life wanting to supplement their income. We are proud to offer them this opportunity to work in a fun, fast-paced and respectful environment,” Lundgren said.

Most seasonal positions are part-time, often with flexibility to fit the availability of the individuals hired. Many positions require the applicant to work evenings, weekends or overnight. In some cases, temporary seasonal associates are offered open year-round positions based on their skills and performance over the holiday season.

Applications for seasonal positions at Macy’s and Bloomingdale’s are being accepted at www.macysJOBS.com and www.bloomingdalesJOBS.com. Candidates who submit applications online will receive a response via email. Hiring for store sales positions will begin in mid-October. The company has already begun hiring for sales support positions, such as in distribution centers, call centers and store receiving.

“We have many examples of associates who started with us in temporary seasonal positions and stayed to enjoy a long and fulfilling career with our company. Seasonal employment is often an opportunity to get to know potential future employees and to identify talent that we can recruit as needs arise,” Lundgren said. “The holidays are a magical time of year, and helping customers select gifts from Macy’s and Bloomingdale’s is a special experience that generations of associates have enjoyed and found rewarding.”

Macy’s, Inc. employs about 166,900 associates on a year-round basis.

Macy’s, Inc., with corporate offices in Cincinnati and New York, is one of the nation’s premier retailers, with fiscal 2014 sales of $28.105 billion. The company operates about 885 stores in 45 states, the District of Columbia, Guamand Puerto Rico under the names of Macy’s, Bloomingdale’s, Bloomingdale’s Outlet, Macy’s Backstage and Bluemercury, as well as the macys.com, bloomingdales.com and bluemercury.com websites. Bloomingdale’s inDubai is operated by Al Tayer Group LLC under a license agreement.

All statements in this press release that are not statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of Macy’s management and are subject to significant risks and uncertainties. Actual results could differ materially from those expressed in or implied by the forward-looking statements contained in this release because of a variety of factors, including conditions to, or changes in the timing of, proposed transactions, prevailing interest rates and non-recurring charges, competitive pressures from specialty stores, general merchandise stores, off-price and discount stores, manufacturers’ outlets, the Internet, mail-order catalogs and television shopping and general consumer spending levels, including the impact of the availability and level of consumer debt, the effect of weather and other factors identified in documents filed by the company with the Securities and Exchange Commission. In light of these risks and uncertainties, readers are cautioned not to place undue reliance on forward-looking statements. Except as may be required by applicable law, Macy’s disclaims any obligation to update its forward-looking statements for any reason.

(NOTE: Additional information on Macy’s, Inc., including past news releases, is available at www.macysinc.com/pressroom).

Source: Macy’s, Inc.

Macy’s, Inc.
Media – Jim Sluzewski, 513-579-7764
Investor – Matt Stautberg, 513-579-7780