New and Unique Merchandise Defines Us
Product is king at Macy’s and Bloomingdale’s. Interesting
and unique assortments attract customers to our stores
and keep them coming back.

Macy’s is more focused than ever before on merchandise
that is either exclusive or in limited distribution. In fact,
more than 35 percent of our sales are in brands that are
exclusive to us or in limited distribution.

Macy’s has become renowned for its assortments of
personality-driven brands such as Baby Phat, Calvin Klein,
Carlos Santana, Donald Trump, Emeril, Jessica Simpson,
Kenneth Cole, Marc Ecko, Michael Kors, Phat Farm, Ralph
Lauren, Sean John, Tahari and Usher.

In 2007, in the largest single brand launch in the history of
the company, the exclusive Martha Stewart Collection was
introduced in every Macy’s store. The new brand includes
unique products in housewares and food preparation, bed
and bath, tabletop, and seasonal cooking and decorating,
all inspired by Martha Stewart herself.

And in fall 2008, Macy’s will become the exclusive
department store retailer for Tommy Hilfiger sportswear
for men and women. Expanded Hilfiger assortments
will be available on macys.com and in more Macy’s
stores, including through new and upgraded Tommy
Hilfiger shops.

Macy’s also brings customers moments of discovery in
niche brands and categories. The company is rolling out
exclusive in-store shops of fresh, handmade cosmetics,
soaps and bath products from Lush. Robotic machines, first
piloted in 2005, will be selling iPods, iPod accessories and
other electronic products in about 400 Macy’s stores by the
end of 2008. And our own Frango chocolates continue to
extend to new items and flavors in stores nationwide.