MACY'S UNVEILS FLOOR PLANS FOR PHASE 2

OF LANDMARK RENOVATION OF ITS MANHATTAN FLAGSHIP

2013 TO BRING EXTENSIVE CHANGES TO MAIN FLOOR COSMETICS, FRAGRANCES, AND MENS

The second phase of Macy's historic four-year renovation of Herald Square gets underway as the retailer unveils its 2013 plans for its company flagship. Phase Two will see the completion of the Main, Mezzanine and Second Floors of the store bridging both the Broadway and Seventh Avenue buildings by Holiday 2013.  For the first time in the store's history, the Mezzanine Level will link the 34th and 35th Street sides of the Broadway Building, providing a seamless shopping experience for customers. A redesigned Cosmetics and Fragrances department, along with a re-imagined Men's Store, relocated Visitor Center, and the re-opening of the Memorial Door entrance on 34th Street will create the most striking architectural and aesthetic changes to the iconic flagship.

“The remodel of Macy's Herald Square is unlike any other renovation project in modern retail history,” said Terry J. Lundgren, chairman, president and chief executive officer for Macy's Inc. “Its magnitude is massive and its impact impressive, as it transforms the store with the singular goal of creating the most dynamic shopping environment for our customers.”  He continued, “The next phase of this historic renovation will continue the future vision of this iconic department store as it allows us to expand our merchandise offerings and elevate the customer shopping experience through design, service and technology.”

A reconfigured floor plan will make navigating between buildings easier and establish a new foundation for department upgrades and vendor shop introductions. Plans for 2013 will include the following departments and categories of business:

Broadway Building

• Cosmetics & Fragrances including a new Impulse Beauty Shop
• Fashion Jewelry
• Designer Handbags and Accessories
• Restoration of the “Memorial Door” entrance on 34th Street
• New Visitor Services Center – Mezzanine Level

Seventh Avenue Building

• Fine & Fashion Watches – Main Floor
• Men's Dress Furnishings – Main Floor
• Men's Fragrances & Skincare – Main Floor
• Restoration of the Seventh Avenue and 34th Street Entrance
• Men's Traditional and Collection Sportswear – Second Floor

Cosmetics & Fragrances

Redesigned with four new curved staircases, the make-over will be complete as a newly expanded Mezzanine Level and the addition of two new escalators to the existing center escalator banks will reimagine the Main Floor.  These architectural accents and structural elements will set the stage for a spectacular retail showpiece for Women's Cosmetics and Fragrances. New prestige brands will be introduced making Macy's Herald Square the destination in the country for beauty. Additionally, Macy's award-winning Impulse Beauty concept will be expanded to include blow-dry bars and new beauty experiences.   Women's Fragrances will move into its new location on the 35th Street side of the Broadway building, marking a new era for the Fragrance Bar at the World's Largest Store. Video components including a 7' by 10' LED screen will set the backdrop for exciting fragrance and cosmetics launches.

Men's Fragrances and Skincare will occupy the corner of Seventh Avenue and 35th Street in a newly designed outpost devoted to men's prestige and designer brands, and an all-new Art of Shaving shop. For the first time, store windows along Seventh Avenue will allow views from the sidewalk onto the spacious selling floor.

The Men's Store

The Seventh Avenue building will see the expansion of the Men's Store with added square footage, new collections, and leased shops that will dedicate approximately 200,000 square-feet in the World's Largest Store to men's apparel and accessories. Dress furnishings, active wear, casual sportswear, traditional and contemporary collections will take over several floors within the store with Men's eventually adding an extra floor by the end of the renovation project.  By summer 2013, a customized shop for Finish Line will be introduced in a temporary location with a permanent shop planned for 2015. The shop will offer the best assortments from the authoritative brands in athletic footwear.

Macy's Visitor Center

A top tourist destination, the Visitor Center at Macy's Herald Square will be remodeled and enhanced with new technology to serve international travelers in their native languages. Touchscreen kiosks will provide guests the latest updates on special events, promotions, and merchandise at Herald Square, as well as, information on attractions, entertainment and dining in New York City.

Significant changes to the Broadway Building were introduced during the first phase of the remodel in 2012.  The unprecedented renovation introduced The World's Largest Shoe Floor and the Herald Square Café on the Second Floor to shoppers.  A new Luxury Hall refashioned the majestic Broadway building showcasing multi-level shops by Louis Vuitton, Gucci, Burberry and Longchamp, together creating a visually stunning and spectacular entrée to the Main Floor.

With ceilings raised to the store's original height of 19-feet, the Main Floor features a one-of-a-kind Coach shop designed by the renowned architect Rem Koolhaas featuring multifunctional units made of clear glass and acrylic, alongside digital walls that shift from videos to mirrors with the swipe of a consumer's hand.  A state-of-the-art accessories shop from Michael Kors features Kors Concierge, an in-store omni-channel experience combining a styling component with digital interactivity.  Both Coach and Kors shops were introduced last year in addition to new shop installations for Dooney & Bourke and Lauren Ralph Lauren.

Additional changes from the first phase of the renovation included the complete remodel of the Main Broadway and 35th Street entrances with stunning digital screen features. Windows on the Mezzanine, 2nd and 6th Floors overlooking Broadway were re-opened to let natural light filter in. The completion of the first phase culminated with the grand opening in early March of Stella 34 Trattoria, a modern Italian restaurant located on the Sixth floor of the store with spectacular views of Broadway and 34th Street.  Transforming former stock room space into a sleek new dining destination for the first time in the store's history, Macy's on-going renovation of Herald Square is a testament to the power of Macy's flagship redefining the retail experience.

About Macy's

Macy's, the largest retail brand of Macy's, Inc., delivers fashion and affordable luxury to customers at more than 800 locations in 45 states, the District of Columbia, Puerto Rico and Guam. Macy's stores and macys.com offer distinctive assortments including the most desired family of exclusive and fashion brands for him, her and home. Macy's Herald Square is New York City's most iconic department store, welcoming more than 20 million visitors from around the world each year.  The world-famous flagship is a retail institution known for its fashion and epic events -- most notably the Annual Macy's Flower Show®; Macy's 4th of July Fireworks® and the Macy's Thanksgiving Day Parade®.  Built in 1902, the “World's Largest Store” currently houses more than 1 million square-feet of retail space.  In 2011, Macy's Inc. announced that the store will increase its selling space to 1.2 million square-feet following an extensive four-year, 400 million dollar renovation.  The renovation will transform the store into one of the most technologically advanced, fashion-forward and exciting destinations in the world with new designer departments, epicurean experiences and multi-level luxury shops.