Macys.Com Re-Launches Internet Shopping Site; Federated Subsidiary Brings New Dimension to Holiday Shopping for 1998 and Beyond

Business Wire, Nov 18, 1998

CINCINNATI--(BUSINESS WIRE)--Nov. 18, 1998--Federated Department Stores, Inc. (NYSE:FD) (PCX:FD) announced today that its Macys.Com e-commerce subsidiary has partnered with IBM to re-launch an expanded Internet site just in time to satisfy a growing consumer demand for online retail shopping alternatives to meet holiday gift giving needs.

The company said its new www.macys.com site now ranks as the nation's preeminent online department store shopping experience, and heightened customer attention for the site is expected in coming weeks as the result of Macys.Com having been selected to participate in IBM's high-profile e-business campaign.

As part of this campaign, national advertising featuring Macys.Com is slated to appear in major print and broadcast media outlets around the time of the Macy's Thanksgiving Day Parade. In addition, www.macys.com will be hot linked through America On Line via the keyword: Macy's.

"For the first time, we believe the interplay between a major, fashion-oriented department store and the Internet will offer customers around the country a viable new alternative for holiday shopping," said Macys.Com President Kent Anderson. "We have effectively extended the Macy's shopping experience to customers everywhere, including those who don't live near a Macy's store.

"Shoppers can explore, browse and buy from Macy's when it's most convenient for them -- 24 hours a day, 7 days a week, 365 days a year," Anderson added. "The best part is that customers can shop our stores, they can go online to buy merchandise or they can browse online and then go to one of our stores for a closer look. No matter what the individual's preference, Macy's now offers an option that best meets their needs."

The new www.macys.com site was developed in conjunction with IBM. It includes more than 250,000 merchandise items from across the Macy's department store assortment -- including apparel for women, men and children; cosmetics, accessories and fragrances; and fashions for the home -- and is organized to be shopper-friendly and to mirror the department store experience.

"Macys.Com is today the definitive online store for the Internet-savvy customer," Anderson said. "We offer excitement, convenience and the well-known brands the customer wants and expects from us."

Among innovative features of the www.macys.com site are: -0-

     -- A "gift wizard" to help customers find gifts for family and
        friends. Cybershoppers can key in basic information -- such as
        merchandise category and price range -- and the www.macys.com
        search engine will suggest up to 36 targeted gift ideas that
        can be ordered instantaneously and shipped within 72 hours.
        "Much like the word `wizard' would suggest, this feature is
        magic for customers who have a tough time deciding what to
        buy," Anderson said.

     -- E-Club, which provides a more personalized online shopping
        experience by storing birthdays, anniversaries, shipping
        addresses and other pertinent information for customers who
        choose to participate.

     -- A "For You" option that streamlines a customer's experience by
        grouping related merchandise -- a shirt, tie and sports jacket
        combination, for example -- for easy mixing and matching.

     -- An updated and expanded Bridal Registry that for the first
        time encompasses couples registered at all 186 Macy's stores
        nationwide. This unified online Macy's Gift Registry means
        that now, wedding guests who live anywhere in the U.S. can
        review updated registry lists and have a gift-wrapped
        selection shipped directly to the couple.

"To many Americans, Macy's equals shopping, particularly at the holidays. We believe many consumers will be excited by having a well-known retailer like Macy's online with such a broad selection of merchandise just in time for their holiday shopping," said Karl Salnoske, general manager, electronic commerce, IBM. "We will be highlighting the macys.com launch as part of our new e-business ad campaign, which will kick-off during the telecast of the Macy's Thanksgiving Day Parade next week. IBM is proud to be supplying the technology that helps Macy's become an e-business."

Customers will find a high level of service and functionality on www.macys.com. Purchases can be gift-wrapped and shipped with a card enclosed for a nominal charge. All purchases can be returned or exchanged by mail, or at any Macy's store operating in 21 states nationwide. Customers can use a variety of credit cards, as well as buy Macy's gift certificates and gift cards. All purchases qualify for bonus points on Macy's Premier VISA.

Based in San Francisco, Macys.Com was established as a separate subsidiary of Federated in June 1998 in order to take full advantage of the Internet's continued emergence as a vehicle for serving customers' shopping needs. The www.macys.com site was launched in early 1996 as an informational site by Federated's Macy's West division, and experimentation with online selling began later that year.