Macy’s Company facts

• Macy’s is known as the Great American Dept Store and was established in 1858 • Macy’s heritage includes the Macy’s Thanksgiving Day Parade, Fourth of July Fireworks, flower shows, and animated window displays • The largest department store and most famous location is the Macy’s Herald Square location in NY. This store is also one of the most visited locations by tourists 2

Overview

Macy's, Inc., with corporate offices in Cincinnati and New York, is one of the nation's premier retailers, with fiscal 2010 sales of $25 billion. – Operates 849 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 two Bloomingdale's outlet stores. – Total Number of Employees: 166,000 3

Overview

In 2009, Macy’s rolls out its My Macy’s localization initiative nationwide, creating 49 new local stores districts (for a total of 59), while adopting a unified national operating structure.

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Macy’s Distribution Centers

• 24 locations with 4 main categories – DC which handles store outbound merchandise – DC for .com business – Hub for furniture delivery – Returns Third Parties handle almost all of the deliveries 5

• The outbound and .com Distribution Centers have Occupational Health & Safety Managers onsite • This position is mainly staffed by RNs who do safety training/accident reporting/wellness/etc 7

Risk Management Organization

Tim Schwirtz Group Vice President Risk Management Stephanie Bare Administrative Assistant Ann Schnure Vice President Workers’ Compensation Bob Bowman Vice President General Liability Business Continuity Doug Pangburn Vice President Risk Control David Kanarek Director of Insurance 8

Risk Management Locations

Risk Management Associate Count • • • Cincinnati Office – – Claims Handling: 70 Risk Control: 3 – Business Continuity: 4 • NY: 1 – Systems: 4 St. Louis Office – – Nurse Case Managers: 7 Risk Control: 2 Redondo Beach Office – – Claims Handling: 24 Risk Control: 4 (SF & LA) • • • • • Baltimore Office – – Claims Handling: 15 Risk Control: 2 Burlington Office – Claims Handling: 2 Miscellaneous Risk Control – – Houston: 1 Miami: 1 – – New Jersey: 5 Seattle: 1 Kapolei Office – Claims Handling: 1 Total Employees: 147 10

WC

• • • • Self insured in 45 states Self administer claims in 39 states TPA/Insurance Carrier handle 5 states & Guam ND & PR are state fund • • • •

Functions handled in house by Macy’s

Accident reporting Claim handling Telephonic nurse case management UR in NY and UR that meets acoem in CA-peer reviews handled by a vendor 11

Macy’s Risk Control

• • • • • • DEVELOP AND MAINTAIN SAFETY & PROPERTY ASSET PROTECTION PROGRAMS - STORES/LOGISTICS/SUPPORT DIVISIONS DEVELOP ALL MATERIALS FOR STORE EXECUTION OF THE SAFETY PROGRAM LOSS TREND ANALYSIS TO IDENTIFY RISK REDUCTION OPPORTUNITIES & CONTROLS • DEVELOP COMPANYWIDE SAFETY AWARENESS PROGRAMS & PROMOTIONS DEVELOP TARGET STORE STRATEGIES CONSTRUCTION/RENOVATION PLAN REVIEWS STORE VISITS/SURVEYS 12

• • • • • • • • • SAFETY & PROPERTY AUDITS TRAINING ACCIDENT INVESTIGATIONS LOCATION INSPECTIONS FIRE PROTECTION SYSTEM ANALYSIS & TESTING CONTRUCTION/RENOVATION SITE INSPECTIONS DEVELOP & MAINTAIN ANNUAL CLAIM EXPENSE ALLOCATION & SAFETY INCENTIVE PROGRAMS OSHA – PROGRAM DEVELOPMENT, TRAINING PROGRAMS & HANDLING OF ALL COMPLAINTS/INSPECTIONS/CITATIONS SYSTEMS OWNERS – IN-HOUSE SAFETY ACTIVITY REPORTING SYSTEM & EXTERNAL SAFETY & PROPERTY RECOMMENDATIONS DATABASE • THANKSGIVING DAY PARADE SAFETY PROTOCOL AND PARADE DAY SAFETY TEAMS 13