Macy’s, Inc. Outlines Normal-Course Adjustments to Stores Portfolio

  Macy’s, Inc. Outlines Normal-Course Adjustments to Stores Portfolio

Business Wire

CINCINNATI -- January 3, 2013

Macy’s, Inc. (NYSE:M)today detailed a series of normal-course adjustments to
its portfolio of Macy’s and Bloomingdale’s stores across the country.

“We remain committed to operating a successful and growing stores business as
part of our company’s Omnichannel strategy for serving customers wherever,
whenever and however they prefer to shop,” said Karen M. Hoguet, chief
financial officer of Macy’s, Inc. “This leads us to open new stores where we
see the opportunity to fill gaps in important markets, as well as to make the
tough decision to selectively close underperforming stores that no longer meet
our performance requirements or where leases are not being renewed.”

Once all of these changes have been implemented, Macy’s will operate 798
stores in 45 states, the District of Columbia, Puerto Rico and Guam.
Bloomingdale’s will have a total of 37 full-line and home stores, as well as
13 Bloomingdale’s Outlet stores. Bloomingdale’s also operates in Dubai under a
license agreement with Al Tayer Group LLC.

(Editor’s Note: Macy’s, Inc. this morning also issued a separate news release
announcing December sales results.)

Store Closings

The company will close the following six stores in early spring 2013. Final
clearance sales will begin on Monday, Jan. 7, at the five Macy’s locations
(and on Sunday, Jan. 6, at Bloomingdale’s Fashion Show), and run for between
seven and 11 weeks.

Bloomingdale’s:

  *Fashion Show Home Store, Las Vegas, NV (99,000 square feet; opened in
    2002; 35 associates).

Macy’s:

  *Paseo Colorado, Pasadena, CA (158,000 square feet; opened in 1980; 116
    associates);
  *Belmont, MA (75,000 square feet; opened in 1978; 101 associates);
  *Downtown Honolulu, HI (80,000 square feet; opened in 1850; 91 associates);
  *Downtown St. Paul, MN (362,000 square feet; opened in 1963; 153
    associates);
  *Downtown Houston, TX (791,000 square feet; opened in 1947; 138
    associates).

The company is committed to treating associates affected by store closings
with respect and openness. Associates displaced by store closings may be
offered positions in nearby stores where possible. Eligible full-time and
part-time associates who are laid off due to the store closing will be offered
severance benefits.

In conjunction with these store closings, an estimated $2 million to $4
million of costs will be booked in the fourth quarter of 2012. These costs
were not previously included in earnings guidance provided by the company.

Planned Store Openings

As previously announced, nine new and replacement Macy’s and Bloomingdale’s
stores are currently planned and/or under construction. One new Bloomingdale’s
Outlet store is being announced today.

New Macy’s stores will be opening in:

  *Mall of Victor Valley, Victorville, CA (103,000 square feet; to open
    spring 2013; approximately 140 associates);
  *Gurnee Mills, Gurnee, IL (140,000 square feet; to open in fall 2013;
    approximately 200 associates);
  *Mall at Bay Plaza, The Bronx, NY (160,000 square feet; to open in fall
    2014; approximately 225 associates);
  *University Town Center, Sarasota, FL (160,000 square feet; to open in fall
    2014; approximately 175 associates);
  *Shops at Summerlin, Las Vegas, NV (180,000 square feet; to open in fall
    2014; approximately 160 associates).

An all-new Macy’s store is being built in Westfield South Shore in Bay Shore,
NY (200,000 square feet; to open in fall 2013; approximately 180 associates)
to replace an older store in the same shopping center.

Macy’s is expanding its presence in Fashion Show in Las Vegas with a new
Macy’s Men’s Store (105,000 square feet; to open in spring 2013) and a
significantly remodeled main store. The current Macy’s Fashion Show workforce
of 495 associates is expected to expand to 560 associates by the end of 2013.

A new Bloomingdale’s store is being built in Glendale Galleria in Glendale, CA
(120,000 square feet; to open in fall 2013; approximately 175 associates).

In addition, an all-new Bloomingdale’s is being built in Stanford Shopping
Center in Palo Alto, CA (120,000 square feet; to open in spring 2014) to
replace an older store in the same shopping center.

A new Bloomingdale’s Outlet store will open in fall 2013 in Fashion Outlets
Chicago now being built in Rosemont, IL. It will be about 25,000 square feet
and employ approximately 55 associates. This new location will bring to 13 the
total number of Bloomingdale’s Outlets, a new concept launched in fall 2010.
Four were opened in 2010, with another three added in 2011 and five added in
2012.

Macy’s Ridgedale Center Expansion, Consolidation

Macy’s today announced the consolidation of its two separate stores in
Ridgedale Center in Minnetonka, MN, into the one expanded location beginning
in early 2014. The current 202,000-square-foot Macy’s main store will be
expanded and upgraded by approximately 84,000 square feet, with construction
beginning in June 2013. When this project is completed in early 2014, the
men’s and home businesses currently in a separate 129,000-square-foot building
will move into the main Macy’s store. The smaller building at Ridgedale Center
will be closed and acquired by General Growth Properties for redevelopment.

Macy’s, Inc., with corporate offices in Cincinnati and New York, is one of the
nation’s premier retailers, with fiscal 2011 sales of $26.4 billion. The
company operates about 840 department stores in 45 states, the District of
Columbia, Guam and Puerto Rico under the names of Macy’s and Bloomingdale’s,
as well as the macys.com and bloomingdales.com websites. The company also
operates 12 Bloomingdale’s Outlet stores. Bloomingdale’s in Dubai is operated
by Al Tayer Group LLC under a license agreement.

All statements in this press release that are not statements of historical
fact are forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such statements are based upon the
current beliefs and expectations of Macy’s management and are subject to
significant risks and uncertainties. Actual results could differ materially
from those expressed in or implied by the forward-looking statements contained
in this release because of a variety of factors, including conditions to, or
changes in the timing of, proposed transactions, prevailing interest rates,
changes in expected synergies, cost savings and non-recurring charges,
competitive pressures from specialty stores, general merchandise stores,
manufacturers' outlets, off-price and discount stores, new and established
forms of home shopping (including the Internet, mail-order catalogs and
television) and general consumer spending levels, including the impact of the
availability and level of consumer debt, the effect of weather and other
factors identified in documents filed by the company with the Securities and
Exchange Commission.

(NOTE: Additional information on Macy’s, Inc., including past news releases,
is available at www.macysinc.com/pressroom).

Contact:

Macy’s, Inc.
Media
Jim Sluzewski, 513-579-7764
or
Investor
Matt Stautberg, 513-579-7780
 
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