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Macy's Unveils Extensive Plans for State Street Flagship Store; Retailer Plans Series of Enhancements for Legendary Department Store in Chicago


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CHICAGO--(BUSINESS WIRE)--April 27, 2006--Macy's North, a new division of Federated Department Stores, Inc. that operates Marshall Field's, today unveiled plans to honor and further establish the iconic flagship store on State Street as a landmark and leading shopping destination in Chicago. The extensive plans, launching in 2006, include the return of revered traditions, enhancements to the interior and exterior of the State Street store, commemoration of Marshall Field's heritage and a deepened commitment to fashion leadership.

This fall, Macy's will designate the State Street store in Chicago as a Macy's flagship by the name, "Macy's at State Street," in honor of its legendary location. As a flagship store, Macy's at State Street will feature the largest and most exciting merchandise assortments available anywhere, including the full array of Macy's private brands, exclusive boutiques and a complete assortment of home merchandise.

"Macy's at State Street is one of the most elegant department stores in the world and it will continue to be the grandest store in Chicago," said Terry Lundgren, Federated's chairman, president and chief executive officer. "We are fully committed to keeping the legacy of this store alive and making this great store even better for Chicagoans and visitors alike."

Restoration of Traditions

Macy's at State Street will continue to surprise and delight shoppers with its annual traditions such as the animated holiday window displays along State Street and the 45-foot-tall Great Tree in the Walnut Room as well as new and differentiated special events and world class service.

To capture the nostalgia of the celebrated department store, Macy's master plan for the store includes restoring the 28 Shop entrance on 28 East Washington, complete with private elevator access. The 28 Shop entrance will also feature a doorman - a tradition that the retailer became famous for in the 1940s when it was necessary to make an appointment to shop. This spring, the State Street store will offer valet parking as an added service enhancement for the first time ever. Valet parking will be available for $12 per four hours.

Macy's also plans to add a Frango Viewing Kitchen to the seventh floor in honor of the beloved Frango tradition in Chicago. The viewing kitchen will serve as a visual theater for the enrobing process as Frango chocolate centers are covered in chocolate to create the outside layer. Once the chocolates are enrobed, they will later be used for sampling. The Frango Cafe will feature additional Frango dessert items on the menu as well as expand to house a full assortment of Frango merchandise on the seventh floor.

Macy's will honor the store's retail heritage in Chicago by enhancing the Archive exhibits located on the seventh floor. Federated and Macy's will be donating the entirety of Marshall Field's archives to the Chicago History Museum (formerly Chicago Historical Society) so they can be preserved and enjoyed by future generations of Chicagoans. As part of the partnership, the Chicago History Museum will maintain and professionally curate Marshall Field's archives. New archive exhibits will be on display twice a year at Macy's at State Street. Additionally, the audio walking tours will continue to tell the story of the legendary retailer.

"We're bringing together what our customers know and love about Marshall Field's with the best of Macy's to create a phenomenal shopping experience," said Ralph Hughes, regional vice president of stores for Macy's North. "The essence of what made this store so special will remain and grow as Macy's through our long-standing traditions and exclusive offerings."

Beautification of the Building

Macy's is committed to retaining the majestic presence, historic stature and architectural integrity of the State Street building. In 2006, Macy's plans to launch a comprehensive, four-year plan to upgrade the building's interior and exterior. The first phase, which is anticipated to be complete this fall, entails professionally cleaning and restoring the exterior of the building (floors one through three); installing Macy's signage on the exterior of the building; and Macy's at State Street branded black canvas awnings and canopies. The aesthetic appeal of the exterior fire doors will also be enhanced with the addition of decorative, wire glass panels.

In addition, Macy's plans to pay tribute to the historic landmark by installing cast bronze plaques describing key historic elements of the State Street building. The commemorative plaques are intended to hang above the Marshall Field and Company nameplates on each of the four corners on the exterior of the building on the street level.

The remaining phases of the exterior enhancements include cleaning and refurbishing the windows in three-floor increments annually through 2009, beginning with the windows on the first three floors.

Macy's will also work with the Chicago Loop Alliance to support the city's landscape and streetscape initiatives.

Fashion Leadership

Macy's at State Street will also continue its tradition of fashion leadership in the 28 Shop by featuring the latest exciting array of designer brands. The retailer recently added Zac Posen, Peter Som, Vera Wang Couture, Doo Ri and Tuleh to the 28 Shop. This fall, the 28 Shop will introduce many new designer brands such as Strenesse, Ports 1961, Badgley Mischka Couture and Bill Blass.

Macy's is working in partnership with the City of Chicago to further promote and support the Chicago fashion industry. The retailer is currently putting plans in place to share its resources and mentorship at State Street for local designers this fall. Macy's will also open a Chicago Designer Shop at Macy's at State Street in September 2006.

In addition, Macy's will introduce several new boutique concepts at State Street from the House of Dereon, Free People, Lush, Lacoste, Links of London and Kenneth Cole Reaction. Macy's at State Street will refresh existing shop concepts for Kenzie, Coach and Eileen Fisher, to name a few. Macy's is also actively pursuing the addition of a fresh market concept for the lower level of the store.

Interior Enhancements

To support Macy's national branding strategy, Macy's North will further improve the store environment with the addition of price check scanners; fitting room vestibules with waiting lounges and plasma video screens; enhanced women's lounges and improved in-store signage.

Branding Plans

Macy's anticipates it will install "Macy's" signage to the exterior of Marshall Field's stores this summer. The Macy's brand logo will begin appearing in store advertising this fall, while internal store signage and Macy's proprietary credit cards will transition to Macy's this summer.

About Macy's North

Macy's North, a new division of Federated Department Stores, Inc, is based in Minneapolis and operates 61 Marshall Field's stores in Illinois, Michigan, Minnesota, North Dakota, Ohio, South Dakota and Wisconsin. All Marshall Field's stores will convert to the Macy's nameplate in September 2006.

Macy's North

Media Contacts:

Business:

Jennifer McNamara, 612-375-4163

or

Chicago:

Andrea Schwartz, 312-781-4333

On the surface the changes sound good (other than the name changing), but when you read further articles, many top-line designers are leaving Marshall Field's as a result of the Macy's merger - Macy's is too lowbrow for their products.

I bristle at the thought of Marshall Field's becoming Macy's.

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It gets more depressing considering 5 or 6 years ago I was still shopping at Dayton's, which was at the same level (maybe even arguably above) Neiman Marcus and Saks.

Somehow I feel that I have a strong connection with both Dayton's and Marshall Field's. Macy's just doesn't do it for me. I can't explain why I feel the way I do about Dayton's and Marshall Field's, but there's just something about them.

I have bought a whole ton of Marshall Field's furnishings for my apartment since every Marshall Field's brand has been on clearance.

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