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CASE 8 • MACY’S, INC. — 2009 85

EXHIBIT 1 Macy’s Divisional Organization Chart

Terry J.
Lundgren, Chair.,
Pres. & CEO

Macy’s Central
-Ed. J. Holman

Macy’s East-
Ron Klein

Macy’s Florida-
Julie Greiner

Macy’s West-
Jeffrey
Gennette

Macy’s Home
Store-Timothy
M. Adams

Macy’s.com-
Peter Sachse

from Lush. The recent use of robotic machines to sell iPods, iPod accessories, and other
electronic products has been a very successful action plan. By 2008, private brands and
labels represented about 19 percent of Macy’s sales.
Macy’s has always been known as an innovator. They pioneered such revolutionary
business practices as the one-price system (the same item was sold to every customer at
one price), quoting specific prices for goods in newspaper advertising, introducing such
items as the tea bag, the Idaho baked potato, and colored bath towels. The company was
also the first retailer to hold a New York City liquor license. Macy’s also piloted new food
concepts in selected stores, many of which were developed from the Macy’s Culinary
Council. Several stores have recently launched quick-service concepts such as La Brea
Baker shops and newly developed Taste Bars.
Technology
Macy’s direct-to-consumer businesses, including Macys.com, continues to be the fastest-
growing part of the company. Two new 600,000-square-foot distributions centers in Portland,

EXHIBIT 2 Macy’s Division Review

Number of Total Store Number of
Division Stores Square Footage Employees
Macy’s Central 239 42,543 million 39,200
Macy’s East 253 52,896 million 57,700
Macy’s Florida 62 10,277 million 10,200
Macy’s West 259 40,507 million 46,700