INVESTOR DAY 2020 MACY’S, INC. INVESTOR DAY 2020

SAFE HARBOR STATEMENT

All forward-looking statements are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the expectations and assumptions. A detailed discussion of these factors and uncertainties is contained in the company's filings with the Securities and Exchange Commission.

This presentation includes non-GAAP financial measures that exclude the impact of certain financial statement items. Additional important information regarding these non-GAAP financial measures as well as others used in the press release can be found at the end of this presentation.

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WELCOME

Jeff Gennette Chairman & Chief Executive Officer

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2017 Year of investment Achieved positive comparable sales in Q4

2018 Strategic initiatives led to 2% annual comparable sales growth Challenging Holiday season

2019 Challenging year for Macy’s Executed Holiday season well

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Organizational Close Expand Customer Changes Underperforming Loyalty Program Stores

Build 4 $1B Brands Create Best Website

Taking action to address aspects of the business under our control

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1 America is over-malled and over-retailed

EXTERNAL America loves to shop, but is FACTORS 2 differently POLARIS PLAN WILL ADDRESS

3 environment moving faster than ever

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WILL

Stabilize Position Profitability in Company for 2020 Profitable Growth

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MACY’S HAS A STRONG FOUNDATION

Loyal Best Growing digital Healthier New in-store customers brand partners business stores experiences

Shared Strong Robust Modernized commitment with foundation in technology supply chain mall partners Data analytics agenda

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AMERICA’S DEPARTMENT STORE

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WE WILL Focus resources on healthy parts of the business

Address the unhealthy parts of the business

Invest where retail is growing today

Develop new plans with improved execution

Build new profitable revenue streams and maximize value of our assets

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Build profitable customer lifetime value 1 STRENGTHEN Expand loyalty program CUSTOMER RELATIONSHIPS Accelerate personalization & monetization

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Drive category roles 2 Best brand destination CURATE QUALITY FASHION

Balance sales & margin

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Enhance digital experience 3 Grow omni-channel customer base ACCELERATE DIGITAL GROWTH

Improve profitability

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Invest in best stores 4 Expand off-mall profitably OPTIMIZE STORE PORTFOLIO

Test & prove market ecosystem

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Right-size organization & expense base 5 Balance sales & profit RESET COST BASE

Improve productivity of working capital

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w i l l

Accelerate savings totaling $1.5B by the end of 2022: • $600M in gross margin improvement • $900M in SG&A savings

Stabilize profitability and improve cash flow generation

Fuel capital allocation strategy for long-term financial stability

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Store locations Outlet locations

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AGENDA

Strategy Overview JEFF GENNETTE CHAIRMAN & CEO

Strengthen Customer Relationships RICH LENNOX CHIEF CUSTOMER OFFICER

Curate Quality Fashion PATTI ONGMAN CHIEF MERCHANT

Accelerate Digital Growth JILL RAMSEY HEAD OF DIGITAL

Optimize Store Portfolio JEFF GENNETTE CHAIRMAN & CEO

Real Estate Update DOUG SESLER HEAD OF REAL ESTATE

Modernize our Supply Chain DENNIS MULLAHY HEAD OF SUPPLY CHAIN

Reset Cost Base and Three-Year Financial Plan PAULA PRICE CHIEF FINANCIAL OFFICER

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STRENGTHEN CUSTOMER RELATIONSHIPS

Rich Lennox Chief Customer Officer

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GREAT BRANDS ARE BEACONS IN CONSUMERS’ LIVES

THE POWER OF BRAND RELATIONSHIPS

23 MACY’S, INC. INVESTOR DAY 2020 MACY’S IS A BEACON BRAND AMERICA’S DEPARTMENT STORE

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STRONG CUSTOMER FRANCHISE 40M+ ACTIVE CUSTOMERS ANNUALLY 28M+ STAR REWARDS MEMBERS

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RE- ENGAGEMENT STORE DIGITAL DRIVERS OUR ECOSYSTEM

Build a high engagement model and unify our initiatives to:

Elevate and inspire our customers when, where, and how they shop

BOPS/BOSS AT YOUR SERVICE PERSONAL STYLIST

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RE-ENGINEERING OUR ECOSYSTEM

Build a high engagement model and unify our initiatives to:

Elevate and inspire our customers when, where, and how they shop

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EVOLVING APPROACH TO Engage Believe, Win the emotional high Parade & BUILDING STRONG, ground PROFITABLE Inspire CUSTOMER Build our fashion & RELATIONSHIPS gift authority

From buying customers one transaction at a time to Activate Offer great value Building relationships one customer at a time

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CROSS CHANNEL: INCREASE ENGAGEMENT IN OMNI ECOSYSTEM

CLV $741

9.5 Visits Per Customer Omni-Channel Customer Annual Spend $502

6.4 Visits Per Customer Backstage + Store Customer $332 Annual Spend

3.5 Visits Per Customer Store-Only Customer $196 Annual Spend 2.4 Visits Per Customer MCOM-Only Customer Annual Spend

Impact of Brand Engagement 29 MACY’S, INC. INVESTOR DAY 2020

BUILD CLV: AMPLIFY IMPACT OF BRAND ENGAGEMENT DRIVERS

+$128 Mobile Purchases +$101 +$192 Cross-Shop Join Loyalty +$247 (Bronze) Redeem Star Money +$209 Replenish +$128 +$340 Beauty Products Purchase Open BOPS/BOSS Credit Card / Loyalty

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THE RELATIONSHIP MODEL: TARGET ATTITUDINAL SEGMENT: BEHAVIORAL COHORTS & ATTITUDINAL SEGMENTS FASHIONABLE

OPTIMISTS CLV

THE ADVOCATES

• 14% of Sales

• 1% of Customers

• 36 visits per year

THE OCCASIONALISTS THE CONVINCED

• 53% of Sales • 20% of Sales • 5% of Customers THE UNCONVINCED • 54% of Customers • 21 visits per year • 5 visits per year

BRAND ENGAGEMENT

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ENTERPRISE INITIATIVES STRENGTHEN RELATIONSHIPS

THE • Star Rewards Loyalty Program 1.0 & 2.0 ADVOCATES • Brand Events, Early Access, etc. • Proprietary and Co-Brand Credit Card

THE • Mobile App Experience

CONVINCED • Private Label

• Star Rewards 3.0: All-Tier Everyday Loyalty Earn

• Growth Store Investments, Backstage, & New Store Formats THE • Gifting & Fashion Authority OCCASIONALISTS • Mobile App Download

• Test and Prove Market Ecosystem

• Star Rewards 3.0: All-Tier Everyday Loyalty Earn THE • U40 Store Pilot UNCONVINCED • Customer-First Media Planning

• New Store Formats

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LOYALTY IS THE RISING TIDE AND DRIVES THE BUSINESS

Purchase Behavior +4.4% total program increase purchase behavior

Loyalty Accounts +28M total program accounts

Retention Rate 98% retention rate for top tier customers

Platinum Members ~15% Platinum tier increase in purchase behavior

Positive Migration +1.4-5.3pp trend change for upward & downward migration

Bronze Members 6.6M Bronze members program to date

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LOYALTY 3.0 WILL PROVIDE VALUE TO OCCASIONALISTS Bronze = 1% back Silver = 2% back Gold = 3% back

Platinum = 5% back

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MIGRATION STRATEGIES WILL TARGET HIGH- VALUE “LOOKALIKES” 5.3M customers “look” like those in our best segments, warranting increased migration focus

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MILLENNIAL ACQUISITION ADDRESSING GAPS WITH PROSPECTS Relevant content and experiences for “unconvinced shoppers”

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3

PERSONALIZATION AT SCALE 1:Many  1:Few  1:1 THE CUSTOMER In Real Time RELATIONSHIP ECOSYSTEM: 1 LEVERAGED 2 FORENSIC 4 UNDERSTANDING ACROSS LOYALTY OF OUR MONETIZATION & MARKETING 1.0, 2.0, & 3.0 CUSTOMER SCALE Hug Our Best Customers Monetization On-site & Inspire the Rest (5.6M Daily Visits) & Off-site (Programmatic & Publishing)

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Build profitable customer lifetime value 1 STRENGTHEN Expand loyalty program CUSTOMER RELATIONSHIPS Accelerate personalization & monetization

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CURATE QUALITY FASHION

Patti Ongman Chief Merchandising Officer

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FASHION VALUE CELEBRATION

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Double down on categories that matter to customers and drive profitability

RESHAPING OUR MERCHANDISING Bring the best brands and fashion to our customers STRATEGY

Provide the best value to our customers and shareholders

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OUR PRIORITY: WIN WITH CUSTOMERS PROFITABLY

1 2 3

CUSTOMER PRODUCT VALUE

• Use data & analytics to define • Build powerful private brands • Maintain rigor in category strategy that drives merchandising process and profitability • Be the best expression of inventory management America’s favorite brands • Maintain focus on Destination • Create pricing and promotions Businesses • Deliver consistent stream of that resonate with customers trend product • Reinvent Ready-to-Wear • Location-level markdown optimization

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CHANGING HOW WE PLAY IN PRIORITY CATEGORIES

PROFIT TRAFFIC HERO OPPORTUNISTIC DRIVERS DRIVERS

Actions Investing to drive Profitably reinforcing Deepening Editing to items with growth with exclusive, role as full-line assortment of styles high standalone differentiated product provider that drive volume profitability Allocating significant Focusing on Focusing on volume Minimizing space and space and marketing elevated product at reasonable SKUs; disrupt at key margins moments

Our Goal Outperform by gaining Drive contribution Drive traffic and cross Improve contribution share and improve margin shopping margin and turn contribution margin

43 MACY’S, INC. INVESTOR DAY 2020 KEY CURRENT CATEGORY ROLES Ready to Wear Center Core Beauty Men’s and Kids Home Destination Business

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DESTINATION BUSINESSES Represent ~40% of sales and ~50% of contribution margin

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OUTSIZED SHARE IN OUR DESTINATION BUSINESSES

BEAUTY MEN’S TAILORED DRESSES FINE JEWELRY WOMEN’S SHOES

OF TOTAL # MARKET # MARKET # MARKET MARKET 1/5 MARKET 1 SHARE 1 SHARE 2 SHARE #3 SHARE

20.6% 9.5% 8.5% 6.5% 5.2%

POS DATA

$ $ $17B 4B $14B $17B 26B Market Market Market Market Market

Sources: Macy’s Consumer Insights, Market Trends, NPD Consumer Data. October 2019 ME. POS data for Beauty, Market rank unavailable. Big Ticket market data unavailable through NPD. Women’s Shoes excludes shoe types sold through licensing agreement with Finish Line (e.g., athletic shoes). Fine Jewelry includes Watches. Beauty represents Department Store and Specialty market. 46 MACY’S, INC. INVESTOR DAY 2020

HERO | TRAFFIC DRIVER

Achieved positive • +3 pp on total remodels results in 2019 • Gained market share

INVESTMENTS IN BEAUTY HAVE PAID OFF • Continue capital investments in growth stores • Evolve beauty advisors to sell across all brands and categories Focused on • Invest more in brand awareness Beauty in 2020 and customer acquisition​ marketing

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OPPORTUNISTIC

Kitchen electrics

RESETTING • Deliver curated, streamlined core assortment KITCHEN • Decrease sales by more than 20% in order to grow ELECTRICS margin by 2-3 pp over next 5 years • Reinvest margin growth to be more disruptive during key times of year

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UNDER 40 NEW CUSTOMER ACQUISITION

Relatively underpenetrated within under 40 Leading market share in key RTW categories will RTW with opportunity to expand serve as the platform of our under 40 strategy

35 50 50 7% 4% 65

Rest of Market Macy’s Macy’s Penetration: Macy’s Penetration: ~95% market share ~5% market share Classifications Sportswear

Under 40 40+ Market RTW Penetration vs. Macy’s

Sources: Macy’s Consumer Insights, Market Trends, NPD Consumer Data. October 2019 ME. Classifications comprised of Dresses, Coats, Tailored Market (Suits), and Swim. Sportswear comprised of Petites, Plus, Active, and Denim 49 MACY’S, INC. INVESTOR DAY 2020

UNDER 40 READY-TO-WEAR REINVENT

The Under 40 Customer The Lifestyle Zone

6 stores piloted a Lifestyle Zone based on Cares about store environment how she shops

Tiered assortment strategy around new and core brands across denim, casual, dressy Shops for a complete outfit in one place Curated trend statements – multi-branded, casual and dressy zones

Shops across categories; RTW Influencer collaborations and new brand biggest opportunity partnerships increase social media engagement

Sources: Macy’s Consumer Insights, Primary Research, 2017 50 MACY’S, INC. INVESTOR DAY 2020

OUR PRIORITY: WIN WITH CUSTOMERS PROFITABLY

1 2 3

CUSTOMER PRODUCT VALUE

• Use data & analytics to define • Build powerful private brands • Maintain rigor in category strategy that drives merchandising process and profitability • Be the best expression of inventory management America’s favorite brands • Maintain focus on Destination • Create pricing and promotions Businesses • Deliver consistent stream of that resonate with our trend product customers • Reinvent Ready-to-Wear • Location-level markdown optimization

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MACY’S FASHION EXPERTS

BEAUTY & FASHION READY-TO-WEAR BACKSTAGE HOME & MEN’S & KIDS CENTER CORE OFFICE LEASED

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WE BRING THE BEST BRANDS TO OUR CUSTOMERS

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OUR NEW MEN’S EXPERIENCE IN HERALD SQUARE

THE PARK

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REINVENTING OUR PRIVATE BRANDS

Actions Goals

• Implemented new organizational structure • 25% private brand sales penetration by 2025

• Cleaned up brand DNA • Improved margins through better sourcing and materials management • Introduced new brands • Four $1B brands • Distinctive, on trend capsule collections

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BUILDING FOUR $1 BILLION PRIVATE BRANDS

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BUILDING ON OUR SUCCESS: FASHION JEWELRY

Driving continued sales and margin contribution

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BUILDING ON OUR SUCCESS: HOTEL CLASSIC

Hotel Collection Hotel Classic

Driving continued sales and margin contribution

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GREAT EARLY TRACTION ON INC AND STYLE & CO FOR RTW

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BRINGING AMERICA’S FAVORITE BRANDS TO OUR CUSTOMERS

Win-Win Relationships Differentiation

• 25% of sales from our top national brands • Exclusive and innovative content • Represent >20% of many of these brands’ • First at Macy’s launches and exclusive wholesale sales capsule collections • 2 pp higher margin from core vendors • The best expression of their brands • 30% core vendor penetration by 2022 • Analytics and insights on what customers through focus on core assortment and want shared assets • Supply chain and digital synergies

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ENHANCING ASSORTMENT THROUGH LEASE PARTNERS

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OUR PRIORITY: WIN WITH CUSTOMERS PROFITABLY

1 2 3

CUSTOMER PRODUCT VALUE

• Use data & analytics to define • Build powerful private brands • Maintain rigor in category strategy that drives merchandising process and profitability • Be the best expression of inventory management America’s favorite brands • Maintain focus on Destination • Create pricing and Businesses • Deliver consistent stream of promotions that resonate trend product with our customers • Reinvent Ready-to-Wear • Location-level markdown optimization

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MORE DISCIPLINED INVENTORY MANAGEMENT APPROACH

Implementing new process controls and guidelines OUR GOAL $ Improving our buying tools 200M Reduction in average stock by 2022

Streamlining of buying organization

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PRICING AND MARKDOWN OPTIMIZATION Increasing margin through more coordinated, data-driven approach:

Rapid test-and-learn campaigns OUR GOAL

Analytics for optimized POS $ and coupon planning 20M Gross margin impact by 2020 Dedicated merchandise pricing team $100M Annual gross margin Location-level markdown impact by 2022 optimization

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Drive category roles 2 Best brand destination CURATE QUALITY FASHION

Balance sales & margin

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ACCELERATE DIGITAL GROWTH

Jill Ramsey Chief Digital Officer

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DIGITAL IS GROWING AND CONTRIBUTES TO PROFITABILITY

~24% 54% $5B+ 3 years sales growth 2009-191 sales through mobile revenue generated contributions to outpacing retail app & web – up from by digital – about 25% operating profit ecommerce market 49% in 20182 of Macy’s brand

1 Growth 2010-18 based on non-NSR sales; 2018-19 based on NSR sales; all sales including leased and BOPS 2 Share based on demand sales per device December YTD for 2018 and 2019; includes purchases made on tablets SOURCE: MCOM December ROF (as of January 13, 2019) 68 Data in presentation excludes Bloomingdales and bluemercury digital business MACY’S, INC. INVESTOR DAY 2020

WE BEGAN UPGRADE OF OUR DIGITAL EXPERIENCE IN 2019

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2019 EFFORTS DROVE MEASUREABLE RESULTS

Mobile app +56% sales through mobile app

Vendor direct fulfillment +59% sales fulfilled direct from vendors

Store pickup +62% digital sales picked up in stores

Same day delivery +162% sales fulfilled via same-day delivery

Product recommendations ~21% of site sales driven by product recommendations

Source: MCOM December 2019 YTD actuals for mobile app, VDF; MCOM 2019 ROF as of January 2020 for store pickup and SDD; Product recommendations based on Dec 2019 actuals 70 MACY’S, INC. INVESTOR DAY 2020

1 Enhance digital experience

ACCELERATE DIGITAL GROWTH 2 Grow omni-customer base

3 Improve profitability

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1 IMPROVE THE DIGITAL EXPERIENCE MACYS.COM IS OUR DIGITAL FLAGSHIP Site and app updates • Improve site speed % 40 • Redesign navigation menu of new customers start • Upgrade search and filter relevancy on macys.com1 • Enhance checkout process Omnichannel customers are Enhance omnichannel experience

2.3x more valuable than • Optimize pickup and return processes macys.com-only customers2 • Enable and support in-store experience

• Fast and accurate delivery

1 Based on 12ME December 2019 2 Omnichannel value multiple in reference to MCOM customers with 2+ visits; data from 12ME Q3 2019 72 SOURCE: Macy’s customer analytics MACY’S, INC. INVESTOR DAY 2020

2 GROW OMNI-CUSTOMER BASE PERSONALIZATION AND WILL Enhance our loyalty experience DRIVE GROWTH • Increase online engagement 30% • Introduce app exclusives for most loyal customers of site users Increase focus on personalization engage with product • End-to-end personalization recommendations, driving • Invest in a consolidated data platform and decision engine % 20 Bring more fashion to customers of Macys.com sales • Innovate on consumer engagement with fashion

• Customize with made-to-measure

• Test alternative business models i.e. recommerce

Source: MCOM December 2019 YTD actuals 73 MACY’S, INC. INVESTOR DAY 2020

2 NEW WAYS TO BRING FASHION TO CUSTOMERS

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3 IMPROVE DIGITAL PROFITABILITY

Polaris improvements will benefit digital bottom line

• Lower fulfillment and delivery cost while improving the customer experience

• Better product margins across digital assortment

Focus on macys.com profitability levers

• Grow store pickup – currently 9%

• Expand ad-monetization

• Reduce impact of returns

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TRANSFORM DIGITAL TEAM

Consolidate talent centers in New York 1 and Atlanta to integrate teams

Strengthen our agile operating model Next Generation 2 Digital Team across the organization

Enable high velocity delivery and rapid 3 test and learn

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Enhance digital experience

3 Grow omni-channel customer base ACCELERATE DIGITAL GROWTH

Improve profitability

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