Macy’s, Inc. Announces CEO Succession Plan

Terry Lundgren to remain Executive Chairman as Jeff Gennette
becomes CEO in the first quarter of 2017; Planned succession process
supports upcoming strategies for business improvement

CINCINNATI–(BUSINESS WIRE)–Macy’s, Inc. (NYSE:M) today announced that Terry J. Lundgren, the
company’s CEO since 2003 and Chairman since 2004, will transition the
position of CEO to Jeff Gennette in the first quarter of 2017. The
transition is part of the board of directors’ succession plan that
included Gennette’s election as President of Macy’s, Inc. in 2014.
Beyond the first quarter of 2017, Lundgren will continue as Executive
Chairman of the company and work side-by-side with Gennette as President
and CEO.

Gennette will join the Macy’s, Inc. board of directors, effective today
– bringing the size of the board to 14 members. He will assume
additional management responsibility during the transition period,
including oversight of the Macy’s stores organization.

“I have been honored to lead this enterprise through a period of
unprecedented reinvention. While our company is larger, stronger and
more resourceful than we were 13 years ago, now is the time to reset our
business model to thrive in a future that is being driven by rapid
evolution in consumer preferences and shopping habits. Our company must
and will change in response to the profound secular forces that are
driving consumer spending. I am firmly committed to, and invigorated by,
the process we have begun to set a going-forward strategy in lockstep
with our evolving customers,” Lundgren said.

“Jeff Gennette is an extraordinary leader who has distinguished himself
as a skilled merchant and retail operator. He has worked closely with me
over the past two years as president of Macy’s, Inc. in a first step in
this succession process, and we are closely aligned on creating a
compelling and sustainable path forward. In making this announcement
today, the board and I want to communicate proactively the timing of the
CEO transition as we act to seamlessly implement our future plans. Jeff
and our team are well equipped to continue the transformation of our
company for the next generation of customers and associates.”

Added Marna C. Whittington, Macy’s, Inc. lead independent director:
“Since taking the reins in 2003, Terry Lundgren has been an outstanding
leader of this company. His tenure has included nearly doubling topline
sales, acquiring the May Department Stores Company, creating Macy’s and
Bloomingdale’s as nationwide brands with emerging global opportunities,
and establishing Macy’s, Inc. as one of the top six online retailers in
the United States, and number three in the categories we sell. His
leadership, combined with his vision and energy, will help set the tone
for the next generation of growth at Macy’s, Inc. in collaboration with
Jeff and the management team. One of Terry’s hallmarks has been creating
an exceptional depth of management talent. Jeff Gennette has
demonstrated proven leadership skills over his 33-year career with the
company, and he is uniquely capable of leading the next chapter of
Macy’s, Inc.’s history given his in-depth knowledge of the organization,
his merchandising acumen and clear insight into the evolution of the
retailing landscape. The entire board of directors is pleased and we are
fortunate that an executive of Jeff’s caliber is in place to be the
company’s next CEO and lead implementation of our going-forward
strategies.”

Lundgren and Gennette will continue to work very closely together on
improving current business trends and setting the stage for changes that
will be announced as decisions are finalized.

“This is the time for us to be laser-focused on what is most important
to our customers, and how we can best deliver the shopping experience
that will secure our position as the premier omnichannel retailer of the
future,” Gennette said. “We have successfully navigated our way through
changing customer trends in the past and there is no doubt that Macy’s,
Inc. will need to be a significantly different retailer in the future in
the way we operate and approach the marketplace. But we also must
continue to tackle our immediate priorities with vigor and discipline.
Terry and I have an outstanding relationship and we will continue to
collaborate closely through this CEO transition process.”

Jeff Gennette, 55, was named President of Macy’s, Inc. in March 2014
after serving as Macy’s Chief Merchandising Officer since February 2009.
From February 2008 to February 2009, Gennette served as chairman and CEO
of Macy’s West in San Francisco. He began his retail career in 1983 as
an executive trainee at Macy’s West. He held positions of increasing
responsibilities, including vice president and division merchandise
manager for men’s collection and senior vice president and general
merchandise manager for men’s and children’s. In 2004, Gennette was
appointed executive vice president and director of stores at Macy’s
Central in Atlanta. From February 2006 to February 2008, Gennette was
chairman and chief executive officer of Seattle-based Macy’s Northwest.
During his career, Gennette also served as a store manager for FAO
Schwarz and director of stores for Broadway Stores, Inc. Gennette, a
native of San Diego, is a graduate of Stanford University.

Macy’s, Inc., with corporate offices in Cincinnati and New York, is one
of the nation’s premier retailers, with fiscal 2015 sales of $27.079
billion. The company operates about 870 stores in 45 states, the
District of Columbia, Guam and Puerto Rico under the names of Macy’s,
Bloomingdale’s, Bloomingdale’s Outlet, Macy’s Backstage and Bluemercury,
as well as the macys.com, bloomingdales.com and bluemercury.com
websites. 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 and non-recurring
charges, competitive pressures from specialty stores, general
merchandise stores, off-price and discount stores, manufacturers’
outlets, the Internet, mail-order catalogs and television shopping 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)

Contacts

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