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86 ROCHELLE R. BRUNSON AND MARLENE M. REED

EXHIBIT 3 2008 Macy’s, Inc., Sales by Merchandise Categories
(as a percentage of sales)

2008 2007 2006
Furniture, Accessories, Intimate
Apparel, Shoes, & Cosmetics 36% 36% 35%
Feminine Apparel 27% 27% 28%
Men’s & Children’s 22% 22% 22%
Home/Miscellaneous 15% 15% 15%

Total 100% 100% 100%

Tennessee, and Goodyear, Arizona, are part of a $300 million investment in direct-to-consumer
technology and operations. Macy’s recently began installing a network of 50,000 new regis-
ters and point-of-sale systems that will be fully in place by the end of 2010. New “smart
registers” are allowing sales associates to handle complex tasks more simply. The supporting
software for this system will enable multichannel retailing in the future.

Sustainability Issues
Macy’s has made a commitment to making a meaningful difference in improving the
natural environment. The company has been able to reduce its total energy consumption by
nearly 10 percent over the past five years. They have begun hosting solar panels on
28 Macy’s stores in California. In addition, their customer-oriented fund-raising programs
in the spring of 2008 benefited such organizations as the National Park Foundation and the
National Resources Defense Council.
Through Macy’s Rwanda Path to Peace Project, the company offers a collection of
colorful baskets hand made by Rwandan widows who are survivors of that country’s civil
war and genocide. The baskets provide a lifeline of sustainable income to these excep-
tional artisans while offering to their customers high-quality, unique baskets that are not
available anywhere else.
Many of Macy’s new products are eco-friendly, such as Haven by Hotel Collection.
These include products for the bed and bath such as organic cotton sheets and towels.
Macy’s has a stringent Vendor/Supplier Code of Conduct. This code sets out specific
standards and requirements for any vendor doing business with the company. All of the
company’s vendors are required to sign written affirmations in which they agree to comply
with the company’s Code of Conduct. In addition to other requirements, the code requires
Macy’s vendors allow unannounced factory inspections for contractual compliance as well
as compliance with child labor laws and regulations.
Macy’s has also adopted welfare-to-work programs with government and service
organization partners in cities from coast to coast. The purpose of such programs is to pro-
vide training that will help welfare recipients gain employable skills and move into gainful
employment. Macy’s provides employment for many of the participants in these programs.
Macy’s encourages charitable giving and employee volunteerism at both the national
and local levels. Contributions from the company and its charitable foundations totaled
$35.7 million in fiscal 2007. The company matched more than $4 million in employee gifts
to nonprofit organizations across the country. In addition, Macy’s efforts resulted in an
additional $42.7 million in contributions from employees and customer through United
Way drives, their Thanks for Sharing holiday campaign, Shop for a Cause charity shopping
days, Passport and Glamorama fashion events, and other programs.
Advertising
Macy’s uses network and cable television, fashion magazines, and an increasing amount of
digital and online media to provide for national brand advertising. They use a balanced
level of promotional advertising and direct marketing. The Macy’s Thanksgiving Day
Parade has had a worldwide impact. The most recent parade had 3.5 million live spectators
and a television audience of 50 million.