The Company is a Delaware corporation. The Company and its predecessors have been
operating department stores since 1820.
The Company, through its Bloomingdale's and macys.com subsidiaries, conducts
direct-to-customer mail catalog and electronic commerce businesses under the
names 'Bloomingdale's By Mail' and 'macys.com.' Additionally, the Company offers
on-line bridal registry and gift purchase facilities to customers.
The Company provides various support functions to its retail operating divisions
on an integrated, company-wide basis.
''The Company's financial, administrative and credit services subsidiary, FACS
Group, Inc. ('FACS'), provides credit processing, collections, customer service
and credit marketing services for the proprietary credit programs of the Company's
retail operating divisions in respect of all proprietary and non-proprietary
credit card accounts owned by the Company and credit processing, customer service
and credit marketing for those accounts owned by GE Capital Consumer Card Co.,
('GE Bank'). GE Bank owns all of the 'Macy's' credit card accounts originated
prior to December'19, 1994, when R.H. Macy'& Co., Inc. was acquired pursuant
to a merger, and an allocated portion of the 'Macy's' credit card accounts originated
subsequent to such merger. In addition, FACS provides payroll and benefits services
to the Company's retail operating and service divisions.
''The Company's data processing subsidiary, Federated Systems Group, Inc. ('FSG'),
provides (directly and pursuant to outsourcing arrangements with third parties)
operational electronic data processing and management information services to
each of the Company's retail operating and service divisions.
''Federated Merchandising Group ('FMG'), a division of the Company, helps the
Company to centrally develop and execute consistent merchandise strategies while
retaining the ability to tailor merchandise assortments and strategies to the
particular character and customer base of the Company's various department store
franchises. FMG is also responsible for all of the private label development
of the Company's retail operating divisions except Bloomingdale's, which sources
most of its private label merchandise through Associated Merchandising Corporation.
''Federated Logistics and Operations ('FLO'), a division of a subsidiary of
the Company, provides warehousing and merchandise distribution services, store
design and construction services and certain supply purchasing services for
the Company's retail operating divisions.
''A specialized staff maintained in the Company's corporate offices provides
services to each of the Company's retail operating and service divisions in
such areas as accounting, real estate and insurance, as well as various other
corporate office functions.
''In February 2004, the Company announced its plans to create a centralized
organization with responsibility for the overall strategy, merchandising and
marketing of home-related categories of business in all of its stores, except
stores operated under the 'Bloomingdale's' name.
FACS, FSG and FMG also offer their services to unrelated third parties.
Competition. The retailing industry, in general, and the department store and
direct-to-customer businesses, in particular, are intensely competitive. Generally,
the Company's stores and direct-to-customer business operations compete with
other department stores in the geographic areas in which they operate, as well
as numerous other types of retail outlets, including 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. The operators of department stores with which the
Company competes to a substantial degree include, among others, Dillard's, J.C.
Penney, Kohl's, May, Nordstrom, and Sears.
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