Product is king at Macy's and Bloomingdale's. Interesting and unique assortments attract customers to our stores and keep them coming back.

Macy's is more focused than ever before on merchandise that is either exclusive or in limited distribution. In fact, more than 35 percent of our sales are in brands that are exclusive to us or in limited distribution.

Macy's has become renowned for its assortments of personality-driven brands such as Baby Phat, Calvin Klein, Carlos Santana, Donald Trump, Emeril, Jessica Simpson, Kenneth Cole, Marc Ecko, Michael Kors, Phat Farm, Ralph Lauren, Sean John, Tahari and Usher.

In 2007, in the largest single brand launch in the history of the company, the exclusive Martha Stewart Collection was introduced in every Macy's store. The new brand includes unique products in housewares and food preparation, bed and bath, tabletop, and seasonal cooking and decorating, all inspired by Martha Stewart herself.

And in fall 2008, Macy's will become the exclusive department store retailer for Tommy Hilfiger sportswear for men and women. Expanded Hilfiger assortments will be available on macys.com and in more Macy's stores, including through new and upgraded Tommy Hilfiger shops.

Macy's also brings customers moments of discovery in niche brands and categories. the company is rolling out exclusive in-store shops of fresh, handmade cosmetics, soaps and bath products from Lush. Robotic machines, first piloted in 2005, will be selling Ipods, ipod accessories and other electronic products in about 400 Macy's stores by the end of 2008. And our own Frango chocolates continue to extend to new items and flavors in stores nationwide.

Through our Rwanda path to peace project, macys.com exclusively offers a collection of colorful baskets hand-made by Rwandan widows who are survivors of that country's civil war and genocide. The baskets provide a lifeline of sustainable income ("trade, not aid") to these exceptional artisans while offering our customers high-quality, unique baskets not available elsewhere.