2

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

3

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

4

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.

5

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

7

• 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

8

Risk Management Organization

Tim SchwirtzGroup Vice President

Risk Management

Stephanie BareAdministrative Assistant

Bob BowmanVice President

General LiabilityBusiness Continuity

Doug PangburnVice PresidentRisk Control

Ann SchnureVice President

Workers’ Compensation

David KanarekDirector of Insurance

Risk Management Locations

10

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

11

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

12

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

13

• 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