A brief introduction

Industry- Retail

Founded- October 28, 1858; 157 years ago

New York, U.S.
Founder- Rowland Hussey Macy
Headquarters- Cincinnati, Ohio, U.S.
Number of locations-769[1] (2016)

Areas served- Nationwide

Key people- Jeffrey Gennette (President)

Terry J. Lundgren (CEO)
Products- Clothing, footwear, accessories, bedding, furniture, jewelry,
beauty products, and houseware

History

No one would have guessed that the small, fancy dry goods store that opened on
the corner of 14th Street and 6th Avenue in New York City in 1858 would grow to
be one of the largest retailers in the world.

But after several failed retail ventures, Rowland Hussey Macy’s determination and
ingenuity paid off at the age of 36 with the launch of R.H. Macy & Co. He adopted
a red star as his symbol of success, dating back to his days as a sailor. First-day
sales totaled $11.06 but by the end of the first full year, sales grossed
approximately $85,000. By 1877, R.H. Macy & Co. had become a full-fledged
department store occupying the ground space of 11 adjacent buildings.

Always the innovator, Macy’s is known for several firsts that changed the retail
industry. Macy’s was the first retailer to promote a woman, Margaret Getchell, to
an executive position, making business history. Macy’s pioneered such
revolutionary business practices as the one-price system, in which the same item
was sold to every customer at one price, and quoting specific prices for goods in
newspaper advertising. Known for its creative merchandising, Macy’s was the first
to introduce such products as the Idaho baked potato and colored bath towels.
Macy’s also was the first retailer to hold a New York City liquor license.

By November 1902, the store had outgrown its modest storefront and moved
uptown to its present Herald Square location on Broadway and 34th Street,
establishing an attraction for shoppers from around the world. With the store’s
7th Avenue expansion completed in 1924, Macy’s Herald Square became the
“World’s Largest Store,” with more than 1 million square feet of retail space. Note
that Macy’s Herald Square expanded to 1.1 million square feet of retail space in
the renovation project unveiled in 2015.

By 1918, R.H. Macy & Co. was generating $36 million in annual sales. Yet, the
prosperity of the retailer was never more apparent than when the company went
public in 1922 and began to open regional stores and take over competing
retailers. In 1923, the Toledo-based department store Lasalle & Koch was
acquired; the next year, Davison-Paxton in Atlanta was acquired; and in 1936, the
Newark-based Bamberger’s was purchased.

To help celebrate their new American heritage, Macy’s immigrant employees

organized the first Christmas Parade in 1924. The procession featured floats,
bands, animals from the zoo and 10,000 onlookers, beginning a time-honored
tradition now known as the annual Macy’s Thanksgiving Day Parade.

In 1945, the company expanded west and purchased O’Connor Moffatt &
Company in San Francisco. Two years later, O’Connor Moffatt stores, including
the landmark Union Square store that opened in 1866, were converted to Macy’s
after a survey indicated that San Franciscans would welcome the name.

Macy’s California broke new ground with the first department store flower show
in 1946. What began as a fragrance promotion in the cosmetics department now
annually welcomes the spring season, treating visitors to a botanical, cultural and
community spectacle and is held in New York City, Chicago, Minneapolis,
Philadelphia and Washington, D.C., in addition to San Francisco. In 1971, Macy’s
Union Square store’s lower level, once cluttered with bargains, was transformed
into “The Cellar,” changing the way customers shop for housewares. Due to its
success, the Herald Square store followed suit five years later.

On December 19, 1994, Federated Department Stores, Inc. (now known as

Macy’s, Inc.) acquired R.H. Macy & Co., creating the world’s largest premier
department store company. Federated Department Stores operated more than
400 department stores and 157 specialty stores in 37 states.

A&S Department Stores were converted to the Macy’s nameplate in May 1995.
Also in 1995, Federated acquired The Broadway Department Stores, bringing
Broadway, Emporium and Weinstocks to the Macy’s family, as well as six former I.
Magnin stores. Some 46 stores were converted to the Macy’s nameplate.
Following the model of A&S, Jordan Marsh Department Stores of Boston, already
owned by Federated, was converted to Macy’s in March 1996. In January 2001,
Macy’s absorbed 17 Stern’s Department Stores located in New York and New
Jersey. In June 2001, Federated purchased the Liberty House operations in Hawaii
and Guam, bringing the proud Macy’s tradition and heritage to the Pacific.

As of January 2014, the Macy's division operates 789 department store locations
in the continental United States, Hawaii, Puerto Rico, and Guam, including the
prominent Herald Square flagship location in Midtown Manhattan, New York City.

As of 2015, Macy's is the largest U.S. department store company by retail sales
and is the 15th-largest retailer in the United States in 2014 in terms of revenue

Management Team

Terry J. Lundgren
Chairman and Chief Executive Officer

Jeffrey Gennette
President

Timothy G. Baxter
Chief Merchandising Officer
 Elisa D. Garcia
Chief Legal Officer

Robert B. Harrison
Chief Omnichannel Officer

Karen M. Hoguet
Chief Financial Officer

Sherry Hollock
Chief Human Resources Officer

Jeffrey A. Kantor
Chief Stores Officer
 Molly Langenstein
Chief Private Brands Officer

Richard Lennox
Chief Marketing Officer

Justin MacFarlane
Chief Strategy, Analytics and Innovation Officer

Patti H. Ongman
Chief Merchandise Planning Officer

Peter Sachse
Chief Growth Officer
 Tony Spring
Chairman and Chief Executive Officer, Bloomingdale’s

Organisational structure

Corporate Vision

Macy’s, Inc. clearly recognizes that the customer is paramount and that all
its actions and omnichannel strategies must be directed toward providing a
personalized merchandise offering and shopping experience.
 Therefore there is an Aggressive implementation of the company’s
customer-centric strategies by a talented, experienced organization
provides Macy’s, Inc. with an important competitive edge.

Macy’s, Inc. is committed to open and honest communications with

employees, shareholders, vendors, customers, financial analysts and the
news media. The company seeks to be proactive in sharing information
and in keeping these key stakeholder groups up-to-date on important and
material developments.

Corporate Financial Objectives

 To grow sales profitably;

 To maintain a profitability rate that is among best-in-class retailers, as

measured by Adjusted EBITDA as a percentage of net sales;

 To improve return on invested capital;

 To maximize total shareholder return.

Company’s Ethics on their website

 We subscribe to ethical business practices in every facet of our

business.
This principle governs our dealings with customers, with vendors, with all
members of the public at large, and with one another.

 We will protect the interests of our shareholders.

We will do nothing to jeopardize the faith placed in us by our investors. We
will act in their best interests at all times. We recognize and respect the
trust they have placed in us.
 We will provide quality and value to our customers in all dealings.
We will strive to provide products and services that meet or exceed our
customers’ expectations. We will be responsive to our customers and their
needs. We will keep the customer at the forefront of all that we are and
everything that we do.

 We will obey all laws.

This includes the spirit of the law, as well as its letter. We will not tolerate or
knowingly condone illegal activities on the part of those who work for us, or
with whom we do business. Neither will we, as a Company, knowingly
engage in any such activities.

 We will treat others as we want them to treat us.

We will be honest, reliable and ethical in our dealings with others. We will
be trustworthy, so that our word is effectively our bond. We will not solicit
favors. We will not accept or offer bribes.

 We will respect the rights and property of others.

We will not cheat, steal, participate in or condone fraud or deceptive
practices. We will not improperly use confidential information or property
owned by others. We will not knowingly misrepresent ourselves or our
intentions in any business dealings. We will protect the privacy rights of our
associates, and we will insist that they do likewise.

 We will be good corporate citizens.

We will take an active part in the communities where we live and work. We
recognize our obligations to give back to those communities that have
sustained us over the years, and we will act on that recognition. We will
encourage all Macy’s, Inc. associates to do likewise.
Compliance of Ethics

The Company’s Compliance and Ethics program is designed to foster a

culture of ethical conduct and ensure compliance with Company policies
and applicable laws.

The Company’s Compliance and Ethics organization consists of (i) the

Compliance and Ethics Executive Committee, whose members are the
Company’s General Counsel, Controller, VP of Internal Audit and Chief
Compliance and Ethics Executive, and (ii) the Office of Compliance and
Ethics, which is managed by the Chief Compliance and Ethics Executive
who reports to the General Counsel.

The Company’s Compliance and Ethics program seeks to achieve

continuous improvement through a holistic approach that emphasizes our
Company’s core value of "Integrity Always." It has many components,
including communications and training on the Company’s Code of Conduct,
legal compliance training, outsourced telephony and web reporting
facilities, periodic legal compliance risk assessments and culture surveys.

The Office of Compliance and Ethics issues regular reports on significant

developments and program activities to the Company’s Chairman and
Chief Executive Officer. In addition, the Office of Compliance and Ethics
reports periodically to the Audit Review Committee of the Board of
Directors.

Vendor’s code of conduct

Macy’s, Inc. and its subsidiaries are firm in their resolve to do business only
with those manufacturers and suppliers that share the company’s
commitment to fair labor practices, including adherence to laws that protect
workers and their salaries, both in the United States and abroad.

As a condition of doing business with Macy’s, Inc., it is required that

manufacturers comply with all laws applicable to the country in which the
merchandise is manufactured, including but not limited to laws against child
or forced labor and unsafe working conditions. This condition is reiterated
on every purchase order issued by the company; the purchase order
contractually commits product manufacturers to adhere to applicable laws
in the fulfillment of the order, providing Macy’s, Inc. with an avenue of legal
recourse should the contract be violated.

To further the objective of ensuring the protection of workers, Macy’s, Inc.

has adopted and issued to its vendors a clear statement of its standards in
a detailed Vendor / Supplier Code of Conduct. Additionally the company
requires its core vendors to acknowledge in writing their understanding of
the company’s policies requiring full compliance with all applicable laws in
the manufacture of products to be carried in Macy’s, Inc. stores.
Relationships with manufacturers and suppliers who do not sign this
agreement are immediately terminated by Macy’s, Inc. In the manufacture
of private label products being made exclusively for Macy’s, Inc., the
company routinely inspects factories for contractual compliance, as well as
compliance with laws and regulations dealing with child or forced labor and
unsafe working conditions.

Upon learning of a potential or actual violation of law by either a supplier of

merchandise to Macy’s, Inc. or a subcontractor hired by such a supplier,
Macy’s, Inc. takes the following actions:
 When notified by the U.S. Department of Labor or any state or foreign
government, or after determining upon its own inspection that a supplier
or its subcontractor has committed a serious violation of law relating to
child or forced labor or unsafe working conditions, Macy’s, Inc. may
suspend all shipments of merchandise from that factory and will
discontinue further business with the supplier. Macy’s, Inc. will demand
that the supplier institute monitoring programs necessary to ensure
compliance with applicable laws prior to the resumption of any business
dealings with that supplier. This action will be in addition to any
contractual or legal remedies available to Macy’s, Inc. pursuant to the
purchase contract.

 Upon notification of a violation of law by a supplier or its subcontractor,

other than as set forth above, Macy’s, Inc. shall immediately suspend
further shipments from that factory, pending receipt of a detailed
explanation from the supplier that describes the circumstances
surrounding the violation, the supplier’s position with respect to the
violation, and a commitment by the supplier to take remedial action to
Macy’s, Inc.’s satisfaction. This action will be in addition to any
contractual or legal remedies available to Macy’s, Inc. pursuant to the
purchase contract.

 Macy’s, Inc. reserves the right to investigate any potential violation of

law and, at its discretion, to suspend, discontinue or terminate its
relationship with any supplier for its failure to comply with any laws
applicable to merchandise produced in the United States or any other
country.

Through the establishment of these policies and the proactive measures

taken, Macy’s, Inc. believes it is most effectively exercising its economic
leverage with manufacturers to encourage their full compliance with laws
designed to protect their workers; manufacturers who violate these laws
know the consequences of their actions. In addition to its commitment to
fully enforce its policies with manufacturers, Macy’s, Inc. is committed to
cooperating with state and federal agencies who ultimately are responsible
for enforcing these laws.

Since 1995, Macy’s, Inc. has had a stringent Vendor & Supplier Code of
Conduct (the “Vendor Code”) that sets out specific standards and
requirements for any supplier doing business with Macy’s, Inc. This
includes private brand goods produced through contracted vendors. The
Vendor Code is designed to protect workers in this country and abroad. All
of the company’s vendors agree to comply with the company’s Vendor
Code and Statement of Corporate Policy on Child or Forced Labor and
Unsafe Working Conditions. Among other things, the Vendor Code requires
that suppliers of Macy’s private brand merchandise allow unannounced
factory audits (within a 14-day audit window) for contractual compliance, as
well as for compliance with laws and regulations dealing with child or forced
labor, wages and hours, and unsafe working conditions. Noncompliance
with the Vendor Code has resulted in termination of 96 factories in the
2011-2014 period.

Macy’s, Inc. does not tolerate the involvement of its suppliers in human
trafficking and slavery. They will quickly investigate any reports alleging
human trafficking and slavery in the supply chain and will take swift and
decisive action against any supplier that is found to act improperly in this
regard. We have enhanced our Vendor Code and our audit tool used for
factory audits to emphasize our policies on human trafficking, slavery and
unsafe working conditions.
Recognizing the risks of human trafficking and slavery is a key objective of
their human trafficking and slavery training for our employees responsible
for core private brand goods procurement. This training presents real-world
scenarios to help participants identify both the obvious and more subtle
indicators of trafficking or forced labor. The focus of this online course is to:

 Increase awareness of human trafficking in supply chains

 Identify human trafficking and slavery risks in company supply chains

 Support prevention and mitigation efforts when human trafficking and

slavery is suspected.

In addition, each year our executives receive General Legal Compliance

training or Code of Conduct training, both of which contain information on
human trafficking and slavery. Over the past three years, more than 20,000
Macy’s, Inc. employees have received this training each year.

CSR Policies

Socially responsible products

Several exclusive merchandising initiatives at Macy’s involve products with

a focus on international social responsibility. Here are three examples.

Macy’s Path to Peace program includes colorful and symbolic baskets and
bowls handmade by Rwandan female weavers who survived the country’s
civil war and genocide. The products are available on macys.com and in
selected Macy’s stores. Introduced in 2005, Path to Peace has dramatically
changed the lives of many Rwandans. From public health initiatives and
HIV/AIDS care to the spirit of hope and reconciliation fostered by the
weavers, the tangible and intangible impact of the project is no longer
measured by individual weavers but by whole communities.

Macy’s Heart of Haiti program includes decorative pieces (such as textiles,

metalwork and housewares) made by artisans struggling to recover from
the tragic earthquake of 2010. The products are available on macys.com
and in selected Macy’s stores. Purchasing one of these handcrafted
masterpieces directly benefits Haitian artisans by allowing them to support
their families with dignity and purpose. With steady income comes better
nutrition, improved education and access to healthcare. Heart of Haiti also
offers new opportunities for artists to collaborate with U.S. designers,
strengthening artisan associations and inspiring and energizing their
communities.

GoodWeave™ Rugs – In spring 2011, Macy’s introduced a collection of

decorative area rugs that have been certified by GoodWeave™ , an
international organization that works to ensure rugs made by hand in Nepal
and India are free of child labor. The collection is carried in Macy’s stores
nationwide and on macys.com. By buying a beautiful handcrafted rug at
Macy’s with the GoodWeave label, shoppers are helping to support families
and build sustainable communities in Nepal and India, nations where
poverty is widespread. GoodWeave-certified rugs are woven by skilled
adult artisans, permitting educational opportunities for children who
otherwise might be required to work. Macy’s continues to work with
GoodWeave to expand the availability of certified rugs in the United States.
Macy's, Inc. prohibits profiling in their stores.

"Profiling" is defined generally as the practice of judging and addressing

people based on their race, color, religion, sex, sexual orientation, gender
identity, national origin, age, disability, ancestry, appearance, or any
personal or physical characteristics

Macy's, Inc. is committed to ensuring that all shoppers, guests, and

employees are treated with respect and dignity and are free from
unreasonable searches, profiling, and discrimination of any kind in our
store.

Macy's, Inc. strictly prohibits unreasonable searches and/or the profiling of

customers by any employee. The participation by employees in such
activities or the failure to report such instances of which they have
knowledge is a violation of company policy. Employees who violate the
company's prohibition on profiling will be subject to disciplinary action, up to
and including termination of employment.

Macy's, Inc. supports the use of internal programs to test compliance with
our strict prohibition against profiling practices.

Macy’s, Inc. retains security guards and/or loss prevention professionals to

help provide shoppers and employees with a safe and secure shopping
environment. Security guards are trained and licensed (where required
under applicable state laws), including pre-employment training, on-the-job
training, and regular in-service training.
Macy's, Inc. requires its employees to respect the basic civil and legal
rights of any person suspected of shoplifting or other crime committed on
store property.

Macy's, Inc. requires all loss prevention employees to identify themselves

as members of Macy's or Bloomingdale's loss prevention department when
initiating any customer contact and to willingly provide his/her name to any
customer upon request. The use of excessive force or using threatening,
vulgar language when apprehending or detaining suspects or in the course
of performing any duties as a loss prevention representative is prohibited.

A person may be detained only in a reasonable manner and for not more
than a reasonable time to permit investigation or questioning, provided an
authorized employee has reasonable grounds to believe that the person so
detained was guilty of criminal possession of an anti-security item or was
committing or attempting to commit shoplifting on the premises.

Nothing contained herein is intended to limit any other obligations the Store
may have or rights that the shopper may have under any Court decrees or
under state and federal Constitutions or the laws of the State in which the
Store is located.

Environmental sustainability

At Macy’s, Inc., they believe that contributing to a more sustainable

environment is good business practice and the right thing to do for future
generations. As a leading national retailer with a significant workforce, they
have the opportunity to make a meaningful difference in improving the
environment. And they will do so by using resources more efficiently,
providing eco-friendly products that meet customer expectations and
striving to reduce our overall impact on the environment. They must,
however, operate within the bounds of good business decision-making so
that each action we take is measurable, sustainable and enduring. Macy’s,
Inc.’s commitment to sustainability is multi-dimensional.

1. They will be aggressive in their drive to eliminate wasteful behavior. In

some cases, this requires consistent application of very simple
principles, such as reminding their associates to turn off lights when
rooms are not in use, to print fewer hard copies of emails, to recycle
waste, to optimize facility performance and to use mass transit for
commuting to work. In other cases, they will be pursuing systematic
improvements to the way we do business, such as better targeting
customer mailing lists and shifting marketing to electronic media by
leveraging the digital and social channels used by our customers.

2. They will reduce their use of scarce resources in a meaningful way.

Macy’s, Inc. will pursue ongoing programs to consume less electricity
and water, reduce our waste stream, and source more of our power
from renewable resources such as solar energy. They will use fewer
paper related products, recycle more and seek to use paper made with
post-consumer waste (PCW). They will work to migrate more of their
output from paper to electronic/digital, including large-scale projects
such as monthly customer billing statements.

3. Whenever possible and sensible within the context of business

requirements, Macy’s, Inc. will pursue the most environmentally
friendly solution. They will be as aggressive as possible in changing for
the better to preserve endangered forests, wildlife, water quality and
 eco-systems. They will explore ways to make their shopping bags, gift
boxes, wrapping tissue, merchandise hangers and other staples of
retailing from recycled and/or certified paper sources, with a
preference for Forest Stewardship Council (FSC) certification. The
building materials used in the stores will be environmentally certified
whenever reasonably possible.

4. They will take a comprehensive approach to sustainability, involving

everyone around them. Macy’s, Inc. will advocate sustainability and
renewability with their vendor partners, associates and customers. This
will include developing supplier sustainability standards and promoting
eco-friendly products to their customers. They will encourage their
associates and ask them to support their initiatives with their ideas,
energy, personal actions and volunteer time. They will support efforts
in communities and nation to clean up the environment and reduce
consumption of scarce resources.

5. They will measure what they do and strive toward quantifiable goals.
Building on recent progress, Macy’s, Inc. has set the following
sustainability goals to guide our progress in the years ahead.
Specifically, Macy’s, Inc. will seek to:

 Reduce energy use on a kWh-per-square-foot basis by another 2

percent in each of 2016, 2017 and 2018 (compared with 2015
levels), recognizing that we already have reduced our energy
consumption by about 35 percent over the past 12 years.

 Install additional solar power systems on Macy’s, Inc. facilities to a

total of 113 by the end of 2016.
 Increase the amount of our waste diverted from landfills to 70
percent by 2018 (up from more than 60 percent in 2015).

 Maintain the percentage of recycled (10 percent PCW or higher)

and/or third-party certified paper they use in marketing materials at
the 99 percent level, compared with 63 percent in 2009.

 By 2018, increase the company’s waste diversion from construction

by 15 percent over 2016 levels in major capital projects.

Some other initiatives for sustainibility

LED Lighting
Macy’s, Inc. has entered a new phase of its industry-leading program to
install energy-saving LED lamps in stores nationwide. The company has
already installed more than 1.1 million LED lamps in substantially all
Macy’s and Bloomingdale’s stores across America, cutting energy
consumption used in lighting by up to 70 percent compared with
conventional lamps replaced. New types of LED installations continue to
be piloted and used in new stores and store remodel projects.

Solar Power
Macy’s was ranked as the 6th largest American company in total on-site
installed solar capacity in 2014 by the Solar Energy Industries
Association. The company is planning and developing 35 additional
solar power arrays to be installed on the roofs of stores and distribution
centers in California, Connecticut, Hawaii, Maryland, New Jersey, New
York and other states in 2016. At year-end 2015, solar energy was being
generated on 78 active installations at Macy’s and Bloomingdale’s
facilities.
Sustainable Apparel Coalition
Macy’s Private Brands – the company’s product development
organization – is a member of the Sustainable Apparel Coalition (SAC),
a trade organization working to reduce the environmental and social
impacts of apparel and footwear products around the world. SAC is
comprised of brands, retailers, manufacturers, government, and
nongovernmental organizations and academic experts, representing
more than a third of the global apparel and footwear market. Private
brands has rolled out the HIGG index (the SAC’s tool to assess
sustainability) to 65 factories producing wearing apparel, footwear, and
home textiles. We have validated results for the majority of those
factories, and we will be rolling out the process to even more factories in
2016.

Packaging Reduction
Macy’s is reducing waste in the merchandise supply chain by
standardizing the size of packing cartons, incorporating recycled
polyester fibers in many woven garment labels, and minimizing
packaging materials. Macy’s has led a process with a group of major
home merchandise vendors to explore new ways to reduce waste and
cost in product packaging in a manner that facilitates sharing and
adoption of best practices.

Sustainable Transportation
Macy’s has transitioned cross-country shipments from over-the-road
trucks to intermodal rail containers, which contribute less than 50
percent the amount of carbon dioxide per freight mile than trucks. In the
last five years, annual intermodal use increased by 200 percent to nearly
48 million miles in 2015 and reduced carbon dioxide emissions by 97
million pounds. Merge centers have been introduced in our largest
vendor shipping markets – California, New Jersey, North Carolina and
Illinois. Multiple vendors are combined on a single truck to ensure full
utilization of space for trailers going to a Macy’s distribution center. This
has increased the number of cartons per trailer by 50 percent which
means less carbon emitted.

Digital Receipts
Macy’s is driving adoption of digital receipts, which are available in all
stores nationwide. When making a purchase, customers can choose to
have a copy of their receipt e-mailed to them, thus eliminating the
unnecessary use of paper receipts. Digital receipts are a convenience
for many customers and support the company’s sustainability objective
of reducing the use of paper in its business operations. In 2015, about
23 percent of all store transactions were paperless.

Project Linus Reduces Fabric Waste

When Macy’s Private Brands organization set out to find a way to make
productive use of damaged product and fabric samples that were being
discarded, they discovered Project Linus. The nonprofit organization –
named for the famed Peanuts character and his trustworthy blanket – is
dedicated to providing security through handmade blankets for ill or
traumatized children and teens. Over the past five years, Macy’s Private
Brands has dropped off fabric and product samples on a monthly basis.
The result has been thousands of blankets that provide comfort and
warmth to children when they need it most.

Electric Vehicle Charging Stations

Macy’s has an agreement with Volta Charging LLC to install up to 24
new free-to-operate electric vehicle (EV) charging stations outside 12
 stores in northern California beginning in early 2016. All 24 charging
stations are expected to be installed and operating by early 2017.
Completion of these and other installations in the Los Angeles area will
bring as many as 58 EV charging stations to customers at Macy’s and
Bloomingdale’s store locations in California. Macy’s is pursuing
additional free-to-charge EV stations outside Macy’s stores in other
markets. In 2011, Macy’s became the first major depart-ment store to
pilot the use of EV charging stations when it forged an agreement to
install 16 charging stations outside five Macy’s stores and one
Bloomingdale’s store in the San Diego area, which are currently being
operated as part of the Blink Network. In 2014 and 2015, we significantly
increased the number of installations. Collectively, these charging
stations provide an added convenience to EV drivers and help promote
the reduction of fuel consumption and the transition to clean, renewable
energy.

Conflicts mineral policy

The Securities and Exchange Commission (the “SEC”) adopted a conflict

minerals rule (the “Conflict Minerals Rule”) as mandated by Section 1502 of
the Dodd-Frank Wall Street Reform and Consumer Protection Act. “Conflict
minerals” are defined in the Conflict Minerals Rule as cassiterite, columbite-
tantalite (coltan), gold, wolframite and three specified derivatives: tin;
tantalum; and tungsten. The mining and trade of the minerals is believed to
help finance armed groups that are committing human rights abuses in the
Democratic Republic of the Congo (the “DRC”) and its adjoining countries.
The Conflict Minerals Rule is intended to reduce a significant source of
funding for these groups.
Macy’s takes its obligations under Section 1502 of the Dodd-Frank Wall
Street Reform and Consumer Protection Act regarding conflict minerals
seriously. Macy’s is committed to ensuring that the metals and other
minerals contained in the private brand products it sells are obtained,
produced, and used in a socially responsible manner. Macy’s does not
directly source conflict minerals from mines, smelters or refiners, and is in
most cases several levels removed from these market participants. Macy’s
therefore requires the cooperation of its private label suppliers in the
implementation and execution of its processes to comply with the rule.

Macy’s expects its suppliers to seek minerals from sources that do not
directly or indirectly contribute to the conflict in the covered countries.
Macy’s reserves the right to request from any supplier at any time such
information, certifications, and documentation as it shall deem necessary to
monitor or assess compliance with this policy.

Revenue

The revenue of macy’s in the year 2015 was 28.11 billion dollars.

Competitors

The retailers with which the Company competes include Amazon, Bed
Bath & Beyond, Belk, Bon Ton, Burlington Coat Factory, Dillard's,
Gap, J.C. Penney, Kohl's, L Brands, Lord & Taylor, Neiman Marcus,
Nordstrom, Ross Stores, Saks, Sears, Target, TJ Maxx and Wal-Mart.
Share of apparels in total sales

The share of apparels in total sales is around 46% in the year 2015,
which does not include intimate apparels. The share is pretty
consistent for the last 6-7 years.