NOTICE OF AUTOMATIC ENROLLMENT AND INVESTMENT MACY S, INC. 401(k) RETIREMENT INVESTMENT PLAN

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1 NOTICE OF AUTOMATIC ENROLLMENT AND INVESTMENT MACY S, INC. 401(k) RETIREMENT INVESTMENT PLAN This notice informs you of the automatic enrollment feature of the 401(k) Plan. Because you may have been subject to the automatic enrollment feature of the 401(k) Plan, you should take the time to read this notice carefully. Although you may wish to take action with respect to your 401(k) Plan account based on the information in this notice, you are not required to take any action. Any associate who became newly eligible to participate in the 401(k) Plan on or after Jan. 1, 1999 (Jan. 1, 2007 if the associate was eligible for the May Profit Sharing Plan) received a 401(k) Plan enrollment packet in the mail at the time of eligibility. The enrollment packet described your automatic enrollment and features of the 401(k) Plan. If you were subject to automatic enrollment and did not change or waive the election, you were automatically enrolled in the 401(k) Plan and 3 percent of your eligible pay was withheld from your paycheck on a pre-tax basis each pay period. This amount has been contributed to your 401(k) Plan account beginning with your first paycheck after your eligibility date. Please note that these automatic contributions may increase annually (see # 2 below). You may choose to contribute a different amount at any time by logging into Merrill Lynch s Benefits OnLine directly at benefits.ml.com, or indirectly through IN-SITE on the Save Actively page. You may choose to contribute more, less, or nothing at all. Keep in mind that the Company will match a portion of the contributions you make up to 5 percent or up to 6 percent of your eligible pay (subject to 401(k) Plan rules). The applicable matching rate is described in the Plan s Summary Plan Description ( SPD ), including summaries of 401(k) Plan modifications to reflect 401(k) Plan amendments. This notice gives you important information about some 401(k) Plan rules, including the Plan s automatic enrollment feature. You can find out more about the 401(k) Plan in the Plan s SPD included in your enrollment packet and also through IN-SITE on the Save Actively page. 1. Does the Plan s automatic enrollment feature apply to me? If you became newly eligible to participate in the 401(k) Plan on or after Jan. 1, 1999 (Jan. 1, 2007 if you were eligible for the May Profit Sharing Plan) and did not affirmatively elect to enroll or waive enrollment in the Plan, you were automatically enrolled starting with your first paycheck after your eligibility date. This means money has already been automatically withheld from your paycheck and contributed to your 401(k) Plan account (see #2 below). If you have made an affirmative election with respect to either your contribution rate or your investment fund since being automatically enrolled in the Plan, the corresponding automatic feature no longer applies to you. You can change your contribution level or investment election at any time by logging into Benefits OnLine or calling HR Services. 2. If I did or do nothing, how much will be or has been withheld from my paycheck and contributed to my 401(k) Plan account? If you were subject to automatic enrollment, 3 percent of your eligible pay was initially withheld from your paycheck on a pre-tax basis and was contributed to your 401(k) Plan account. This began with your first paycheck after your eligibility date. If you have not made any changes to your contribution and you became a new participant in the Plan on or after Sep. 1, 2008, your contribution automatically increased 1 percent on the first Jan. 1 that occurred after you were automatically enrolled in the Plan for 12 months. Furthermore, your contribution rate will continue to increase 1 percent each year until it reaches 6 percent. If, for example, you were first eligible for the 401(k) Plan on Jan. 1, 2012, 3 percent of your eligible pay was withheld from your paycheck beginning with your first paycheck in 2012 and contributed to your 401(k) Plan account. If you did not make any changes to the 3 percent automatic contribution during the year, your contribution will automatically increase to 4 percent on Jan. 1, Please note, in order to comply with Safe Harbor regulations, your contribution was not automatically increased in the 2014 Plan year. When you enter the Plan mid-year, you must complete a year as an active participant before the automatic increase takes effect. For example, if you were automatically enrolled in the Plan on February 1, 2015, you would not be automatically increased on January 1, 2016, as you had not participated for 1 full year. On January 1, 2017, your first automatic increase would take effect. You may contribute more or less to your 401(k) Plan by choosing a different percent. However, there are limits on the maximum amount that you can contribute in a calendar year. These limits are dictated by the IRS and are described in Plan Highlights under the Plan Information section Benefits OnLine. Also, please keep in mind that it is only on your contributions up to 5 percent or up to 6 percent of your eligible pay that the Company makes a matching contribution at the established matching rate (subject to 401(k) Plan rules). An excellent reason to contribute to your retirement through the 401(k) Plan is to delay taxation. Your contributions to the Plan are taken out of your paycheck on a pre-tax basis and are not subject to federal income tax at that time. Instead, they are contributed to your Plan account and can grow over time with earnings. Your account will be subject to Federal income tax only when withdrawn. To learn more about the Plan s definition of eligible pay, see the Plan s SPD. 3. How will my 401(k) Plan account be invested? The 401(k) Plan lets you invest your account among several different investment funds. For a description of the Plan s investment funds, please see the Investment Options section of the Plan s SPD. For updated investment return information, please log into Benefits OnLine. Unless you change the investment fund or funds, your Plan account is automatically invested in the Target Retirement Date Fund appropriate to your estimated retirement date at age 65.

2 Description of the Target Retirement Date Funds: Investment Vehicle/Objective Each of the Target Retirement Date Funds is a mix of stocks and bonds. As time passes, the mix of the fund is rebalanced so that it becomes more conservative (less risky) as you approach retirement. Each fund seeks to provide capital appreciation and current income consistent with its asset allocation strategy. Each of the Target Retirement Date Funds is designed to hold 100 percent of the 401(k) assets for those individuals with a particular target retirement date range. Investment Process To match a variety of expected retirement dates, the Plan provides eleven Target Retirement Date Funds. Each is managed by The Vanguard Group, Inc. or a subsidiary (collectively Vanguard ) and invests in a group of Vanguard mutual funds to provide the desired asset allocation. Risk Investors should consider that each Target Retirement Date Fund not only has a mix of underlying stock and bond-type investments that will have investment risks of their own, but also has asset allocation risks. Asset allocation risks are driven by the fund s mix of underlying investments, which could cause the Fund to underperform other funds with similar objectives. There can be no assurance that the fund will not decline in value. Expenses The expenses of administering the Plan are paid by the Plan. Brokerage fees and commissions for the Target Retirement Date Funds are paid out of that fund. For the 2014 calendar year, the annual expense ratios for the funds ranged from 0.22 percent to 0.26 percent. Target Retirement Date Funds historical expenses are: Fund Target Income Retirement Fund 0.27% 0.25% 0.24% Target 2010 Retirement Fund 0.25% 0.24% 0.23% Target 2015 Retirement Fund 0.24% 0.23% Target 2020 Retirement Fund 0.24% 0.23% Target 2025 Retirement Fund 0.24% 0.23% Target 2030 Retirement Fund 0.24% 0.23% Target 2035 Retirement Fund 0.24% 0.24% Target 2040 Retirement Fund 0.25% 0.24% 0.23% Target 2045 Retirement Fund 0.25% 0.24% 0.23% Target 2050 Retirement Fund 0.25% 0.24% 0.23% Target 2055 Retirement Fund 0.43% 0.29% 0.26% You can change how your Plan account is invested at any time. You may choose among the Plan s five core investment funds, eleven Target Retirement Date Funds, or the Self-Direct Brokerage by logging into Benefits OnLine or calling HR Services. 4. When will my Plan account be vested and available to me? You are always fully vested in your contributions to the Plan. You will become vested in your Company match account according to a vesting schedule based on years of vesting service. You receive one year of vesting service for each Plan year (Jan. 1 Dec. 31) you are paid for 1,000 hours of service. The Plan provides that your vested accounts may be distributed in full after you have terminated employment with Macy s, Inc. You also may be eligible for partial withdrawals while you are employed ( in-service withdrawals ). To find the guidelines for withdrawals, see the Plan s SPD. 5. Can I change the amount of my contributions? You can change the amount you contribute to the Plan at any time. For example, if you were automatically enrolled in the Plan at 3 percent, you can change your contribution up to 5 percent or up to 6 percent of eligible pay to receive the full benefit of the Company s matching contribution. To change your contribution amount, log into Benefits OnLine through IN-SITE or call HR Services. If you have any questions about how the Plan works or your rights and obligations under the Plan, or if you would like a copy of the Plan s SPD or other Plan documents, please contact HR Services at MACY (6229) to speak to a representative.

3 Participant Disclosure of Plan and Investment Related Information Macy s, Inc. 401(k) Retirement Investment Plan Participating in the Macy s, Inc. 401(k) Retirement Investment Plan can be one of the best ways you can save and invest for your financial future. The assets you could accumulate through your Plan account may be one of your primary sources of income in retirement, so you ll want to make the most of the opportunity the Plan offers. When you participate in the Plan, it s important that you understand the benefits available to you through the Plan. It s also important that you understand your rights and responsibilities as a participant, the investment choices the company makes available in the Plan, and the expenses associated with your participation. These expenses include any fees you may incur directly, such as fees for certain transactions, and any indirect costs associated with the investment choices you select for your Plan account. This document provides participants in the Macy s, Inc. 401(k) Retirement Investment Plan, with certain Plan and investment-related information. This information includes the costs associated with your participation and investment choices, along with your rights to direct how your accounts in the Plan are invested. Macy s, Inc. has directed the provision of this information. This document, along with the educational information, tools and services available through Merrill Lynch, is designed to help you make smart and informed decisions as you prepare for your financial future. What s Inside Plan-Related Information This section includes information about your ability to direct the investment of your Plan account and administrative expenses of the Plan. It s important that you understand your responsibility to direct your accounts to the investment alternatives of your choice. This section is organized into three categories: 1. General Plan Information: Describing your rights to choose and manage Plan investments. 2. Administrative Expenses Information: Describing general administrative expenses that may be charged against your account, and; 3. Individual Expenses Information: Describing individual transaction expenses that may be charged only to your account. Investment-Related Information The Plan s menu of investment alternatives is designed to help you select a mix of investments that you believe is appropriate for your financial goals, tolerance for investment risk and time horizon. This section provides key information about the investment alternatives offered through the Plan, including the type of fund, its historical performance, its performance relative to a benchmark of similar investments, each fund s expense ratio and any fees and expenses that may be associated with certain transactions in any of these investments. For additional information and documentation regarding your Plan: Macy s, Inc. HR Services - Retirement 9111 Duke Blvd. Mason, OH (800)

4 Plan-Related Information Plan Name: Macy s, Inc. 401(k) Retirement Investment Plan Recordkeeping Plan Number: General Plan Information Your rights as a participant As a participant in the Plan, you have the right to choose how to invest your account among the investment alternatives that the Macy s, Inc. 401(k) Retirement Investment Plan makes available to participants. Your Investment Alternatives Macy s, Inc. 401(k) Retirement Investment Plan currently makes the following investment alternatives available to you as a Plan participant: Macy s, Inc. Investment Alternatives International Stock Index Fund Macy s, Inc. Stock Fund S&P 500 Stock Index Fund Self-Direct Brokerage Account Service Small/Mid Cap Stock Index Fund Stable Value Fund Vanguard Target Retirement Income Trust Vanguard Target Retirement 2010 Trust Vanguard Target Retirement 2015 Trust Vanguard Target Retirement 2020 Trust Vanguard Target Retirement 2025 Trust Vanguard Target Retirement 2030 Trust Vanguard Target Retirement 2035 Trust Vanguard Target Retirement 2040 Trust Vanguard Target Retirement 2045 Trust Vanguard Target Retirement 2050 Trust Vanguard Target Retirement 2055 Trust Investment Managers Advice Access Advice Access Advice Access is an investment advisory service that provides personalized planning and investing advice for retirement plan participants. Advice Access provides personalized, unbiased savings and investment recommendations provided by an independent financial expert, Ibbotson Associates. Recommendations are based on an individual s goals and current status and include contribution rate, asset allocation and specific investment alternatives. Advice Access can take into consideration other participant data, including assets held outside the retirement plan to formulate a comprehensive strategy. Directing Your Investments As a Plan participant, you can change your current investments as well as your investment direction for future contributions on a daily basis. Investment directions are processed the same business day if received prior to 3 P.M. (ET) (unless there is an earlier market closure), otherwise they are processed the following business day. Investment directions are not processed on days the New York Stock Exchange (NYSE) is closed (i.e., weekends, market holidays), but will be processed on the next business day the NYSE is open. Any fund or Plan-specific restrictions or limitations are described in the Investment-Related Information section of this document. You can direct how your future contributions are to be invested, or change how your existing balance is invested, on Benefits OnLine at or by calling (800)

5 Fees, Limitations & Restrictions As a Plan participant, you may be subject to fees that are charged directly against your investments. Although rarely assessed, fees may include sales loads, sales charges, surrender charges and/or exchange fees. In addition, redemption fees (also referred to as market timing or short term trading fees), which are imposed by the investment alternative(s) and used to mitigate excessive trading, if applicable, are applied to fund transfers that are directed by you as the Plan participant. Merrill Lynch will notify you of any redemption fees, including the amount, before you direct such trades via Benefits OnLine, the Interactive Voice Response (IVR) system, or with a representative at (800) Your Plan may also include certain restrictions designed to prevent market timing transactions and excessive trading that prohibit the purchase and subsequent sale of investment alternative(s) within a specified timeframe. For specific fees, Plan restrictions and limitations pertaining to your investment alternatives, please refer to the charts in the Investment-Related Information section or Benefits OnLine. Proxy Voting and Tender Rights Proxies and corporate actions are voted in accordance with the provisions in the Plan s trust as described below: Company Stock With company stock, you have the right to direct the Trustee or designated agent on how to vote any issued proxies or corporate actions. You will receive the proxy material or corporate action information for voting. Your voting instructions will be forwarded to the Trustee or designated agent, who will vote the Plan s shares in accordance with your instructions. If you do not provide the Trustee or designated agent with timely voting instructions, they will vote the shares in proportion to the voting instructions actually received from other participants, subject to the Trustee s fiduciary responsibilities under ERISA. Mutual Funds and Other Investment Alternatives With mutual funds and other investment alternatives, the proxies are voted by a Plan representative. Self-Directed Brokerage Self Direct Brokerage (SDB) accounts holding investments on the record date are automatically captured through the Merrill Lynch proxy process, and data is provided to the proxy vendor each night for processing. As a participant in SDB, you will receive the proxy voting card and instructions. Self-Direct Brokerage Accounts Macy s, Inc. offers participants the Self-Direct Brokerage Account (SDB) service, which is a separate account within your retirement Plan that allows you to invest in investments not available in your Plan s investment menu. Macy s, Inc. offers participants the following type(s) of Self-Direct programs: SDB Direct Advantage - Designed for investors who prefer to submit trades themselves online or through the call center. Participants create their own investment strategy and have access to a comprehensive range of investments. 2. Administrative Expenses Information There are currently no fees and expenses for Plan administrative services charged against participant accounts that are not reflected in the total annual operating expenses of an investment. However, there may be applicable Plan administrative fees and expenses arising from time to time that may be charged to participant accounts on a pro rata basis (i.e., based upon a participant s account balance relative to total Plan assets) or a per capita basis (i.e., a flat fee for each participant account), as the Plan fiduciary chooses. The actual amount of any such administrative fees and expenses charged to your account will appear on your participant statement under the Contributions and Activity For This Period section.

6 3. Individual Expenses Information This section describes any fees and expenses that may be charged against the account of any participant or beneficiary of an individual, rather than on a Plan-wide basis, and are not reflected in the total annual operating expenses of any investment alternative. Individual expenses include any fee you might be charged for a particular transaction or service that you select. These fees are deducted directly from your account and shown on your quarterly participant statement. Here are the transactions for which the Plan charges fees to your account: Transaction One-Time Loan Initiation Overnight Check Service Returned ACH Fee Wires Fee $50.00 loan initiated $25.00 check $25.00 returned ACH $10.00 Request Self-Direct Brokerage Fees Self-Direct Brokerage (SDB) is a separate account through which you can buy and sell investment choices not available in your Plan s regular investment menu. SDB Direct Advantage Annual Recordkeeping Fee: Mutual Fund Alliance Funds Mutual Funds Supermarket Funds $ Transactions conducted at Net Asset Value (NAV) Online trades: $49.95 Call Center trades: $74.95

7 Investment-Related Information This section includes important information to help you compare the investment alternatives under your retirement plan. If you want additional information, including more current performance information about your investment alternatives, you can go to the Plan s website at or call (800) The table shown in this section provides information about the designated investment alternatives the Plan has chosen to make available to participants. The table provides historical performance information for the investment alternatives that do not have a fixed or stated return as well as related expenses, fees and restrictions where applicable. The performance for each investment option is also compared to a benchmark, which measures how an index of similar funds has performed over the same period. Fees and expenses are only one factor to consider when selecting your investments and the cumulative effect of fees and expenses can substantially reduce the growth of your retirement account. For an example of the long-term effect of investment fees and expenses, you can visit the Employee Benefit Security Administration s website at for additional information. Historical Performance Variable Return Investments This table displays the historical performance of the investment alternatives available in your Plan that have a variable rate of return, meaning that they can rise or decline in value during any given period. It also shows the expenses and fees (if any) for the investment alternatives available through the Plan. Shown for each fund is its gross annual expense ratio. An expense ratio is an amount that shareholders pay for fund operating expenses and management fees, and is expressed as a percentage of its total assets. These expenses reduce the investment return available to you through the fund. These expenses are shown in this table on a per $1,000 basis. For a fund with an expense ratio of 0.25%, for example, this means that for each $1,000 invested in the fund, $2.50 would be used by the fund to help cover its costs rather than to earn a potential return for the investor. This historical performance is measured against the performance or a benchmark of similar investments. (A participant cannot invest directly in an index used as a benchmark.)

8 The performance data contained herein represents past performance. An investment s past performance is not necessarily an indication of how the investment will perform in the future. Investment return and principal value will fluctuate so that units, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For more current fund performance, including the most recently completed calendar month, please log on to Benefits OnLine at The fund performance data is shown net of fees. All total returns assume the reinvestment of all dividend and capital gain distributions at net asset value when paid and do not reflect the deduction of any sales charges, as these charges are not applicable to eligible 401(k) Plans. Had the sales charge been deducted, results would have been lower than shown. Please note that there are other charges and expenses that apply to the investment alternatives, such as management fees, which are reflected in their net investment return. As of June 30, 2015 Investment Category Investment Name Benchmark Redemption Fees, Limitations Average Annual Total Return % Annual Gross Expense Ratio 1 Yr 5 Yr 10 Yr Since Inception Inception Date As a % Per $1,000 EQUITY/STOCK International Stock Index Fund 1 International Stock Fund Benchmark -5.35% -5.26% 9.29% 8.98% 4.82% 4.85% 04/ % $2.50 Macy s, Inc. Stock Fund S&P 500 TR 18.35% 7.42% 32.13% 17.34% 7.73% 7.89% 9.33% 04/ % $1.30 S&P 500 Stock Index Fund 2 S&P 500 Stock Index Fund Benchmark 7.28% 7.42% 17.16% 17.34% 7.73% 7.89% 04/ % $1.60 Small/Mid Cap Stock Index Fund 3 Small/Mid Cap Stock Fund Benchmark 6.16% 6.18% 18.10% 18.07% 8.24% 9.10% 04/ % $1.60 MONEY MARKET/STABLE VALUE Stable Value Fund 4 Stable Value Fund Benchmark 1.83% 0.08% 2.32% 0.55% 3.27% 1.74% 04/ % $5.80 OTHER Vanguard Target Retirement Income Trust 5 Target Retirement Income Trust Benchmark 1.87% 2.13% 6.64% 6.88% 5.41% 5.63% Vanguard Target Retirement 2010 Trust 6 Target 2010 Retirement Trust Benchmark 2.06% 2.33% 8.26% 8.53% 5.84% 5.97% 0.23% $2.30 Vanguard Target Retirement 2015 Trust 7 Target 2015 Retirement Trust Benchmark 2.54% 2.82% 9.58% 9.84% 6.40% 6.51% Vanguard Target Retirement 2020 Trust 8 Target 2020 Retirement Trust Benchmark 3.00% 3.23% 10.61% 10.96% 6.71% 6.93% 0.21% $2.10 Vanguard Target Retirement 2025 Trust 9 Target 2025 Retirement Trust Benchmark 3.08% 3.32% 11.42% 11.78% 6.88% 7.11% 0.21% $2.10 Vanguard Target Retirement 2030 Trust 10 Target 2030 Retirement Trust Benchmark 3.15% 3.41% 12.25% 12.60% 7.02% 7.27% Vanguard Target Retirement 2035 Trust 11 Target 2035 Retirement Trust Benchmark 3.19% 3.50% 13.05% 13.40% 7.30% 7.55% Vanguard Target Retirement 2040 Trust 12 Target 2040 Retirement Trust Benchmark 3.26% 3.59% 13.41% 13.74% 7.55% 7.78%

9 Investment Category Investment Name Benchmark Redemption Fees, Limitations Average Annual Total Return % Annual Gross Expense Ratio 1 Yr 5 Yr 10 Yr Since Inception Inception Date As a % Per $1,000 OTHER continued Vanguard Target Retirement 2045 Trust 13 Target 2045 Retirement Trust Benchmark 3.23% 3.59% 13.42% 13.74% 7.54% 7.78% Vanguard Target Retirement 2050 Trust 14 Target 2050 Retirement Trust Benchmark 3.25% 3.59% 13.42% 13.74% 7.56% 7.78% Vanguard Target Retirement 2055 Trust 15 Target 2055 Retirement Trust Benchmark 3.13% 3.59% 8.77% 9.07% 05/ % $2.30 Below are definitions of fees and restrictions that may or may not be imposed by designated investment alternative managers: Redemption Fees: Designated investment alternatives may assess an investment-specific short-term redemption fee when investments are held for less than a fixed period of time. This helps to mitigate excessive trading. Repurchase Restrictions: Designated investment alternatives may impose limitations to repurchase into the same investment within a specified period of time (i.e. 60 Calendar days). This restriction helps to limit increases to investment expenses. Minimum Waiting Block Period: Designated investment alternatives may institute a waiting period (i.e., 15 Business days) for the selling and/or repurchasing of investments. This helps to mitigate excessive trading. To help achieve long-term retirement security, you should give careful consideration to the benefits of a well-balanced and diversified investment portfolio. Spreading your assets among different types of investments can help you achieve a favorable rate of return, while minimizing your overall risk of losing money. This is because market or other economic conditions that cause one category of assets, or one particular security, to perform very well often cause another asset category, or another particular security to perform poorly. If you invest more than 20% of your retirement savings in any one company or industry, your savings may not be properly diversified. Although diversification is not a guarantee against loss, it is an effective strategy to help you manage investment risk. Although a Money Market Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund. The Fund is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Keep in mind the 7-day yield more closely reflects the current earnings of the fund, than the total return quotation. Please be aware that certain investment alternatives may charge redemption fees for short-term trading, which are imposed by the investment alternative companies. The returns for these funds will not reflect such fees, and if they had been reflected, results would have been lower than shown. For certain investment alternatives, the returns reflect subsidies and waivers, without which the results would have been lower than noted. These subsidies and waivers may not continue to remain in effect. Please consult the prospectus for more information. Investors should consider the investment objectives, risks, charges and expenses of investment alternatives carefully before investing. This, and additional information about the investment alternatives, can be found in the prospectuses, and, if available, the summary prospectuses, which can be obtained on Benefits OnLine at or by calling Merrill Lynch at (800) Investors should read the prospectuses and, if available, the summary prospectuses carefully before investing. For more information on the investment alternatives that are not mutual funds (non-registered investments), log on to and refer to the fund description or fact sheet, if available. Investing involves risk, including possible loss of the principal value invested. Investments in foreign securities or sector funds, including technology or real estate stocks, are subject to substantial volatility due to adverse political, economic or other developments and may carry additional risk resulting from lack of industry diversification. Funds that invest in small or mid-capitalization companies experience a greater degree of market volatility than those of large-capitalization stocks and are riskier investments. Bond funds have the same interest rate, inflation, and credit risks associated with the underlying bonds owned by the fund. Generally, the value of bond funds rises when prevailing interest rates fall and falls when interest rates rise. Investing in lower-grade debt securities ("junk" bonds) may be subject to greater market fluctuations and risk of loss of income and principal than securities in higher rated categories. There are ongoing fees and expenses associated with investing. Bear in mind that higher return potential is accompanied by higher risk. 1 The International Stock Fund benchmark consists of the Morgan Stanley Capital International All Country World ex-u.s. Net Index (MSCI EAFE Net Index prior to July 1, 2013). 2 The S&P 500 Stock Index Fund benchmark consists of the Standard & Poor s 500 Stock Index. 3 The Small/Mid Cap Stock Fund benchmark consists of the Dow Jones U.S. Completion Index. 4 The Stable Value Fund benchmark consists of a rolling 4-year average of 90-day Treasury bill returns. 5 The Target Income Fund benchmark consists of 21% CRSP U.S. Total Market, 9% FTSE Global All-Cap ex-u.s., 15% Barclays Global Aggregate ex-u.s., 38% Barclays U.S. Aggregate, 17% Barclays U.S. 0-5 Year TIPS.

10 6 The Target 2010 Fund benchmark consists of 25% CRSP U.S. Total Market, 11% FTSE Global All-Cap ex-u.s., 14% Barclays Global Aggregate ex-u.s., 36% Barclays U.S. Aggregate, 14% Barclays U.S. 0-5 Year TIPS. 7 The Target 2015 Fund benchmark consists of 35% CRSP U.S. Total Market, 15% FTSE Global All-Cap ex-u.s., 11% Barclays Global Aggregate ex-u.s., 31% Barclays U.S. Aggregate, 8% Barclays U.S. 0-5 Year TIPS. 8 The Target 2020 Fund benchmark consists of 42% CRSP U.S. Total Market, 18% FTSE Global All-Cap ex-u.s., 9% Barclays Global Aggregate ex-u.s., 31% Barclays U.S. 9 The Target 2025 Fund benchmark consists of 47% CRSP U.S. Total Market, 20% FTSE Global All-Cap ex-u.s., 7% Barclays Global Aggregate ex-u.s., 26% Barclays U.S. 10 The Target 2030 Fund benchmark consists of 52% CRSP U.S. Total Market, 22% FTSE Global All-Cap ex-u.s., 6% Barclays Global Aggregate ex-u.s., 20% Barclays U.S. 11 The Target 2035 Fund benchmark consists of 57% CRSP U.S. Total Market, 25% FTSE Global All-Cap ex-u.s., 4% Barclays Global Aggregate ex-u.s., 14% Barclays U.S. 12 The Target 2040 Fund benchmark consists of 62% CRSP U.S. Total Market, 28% FTSE Global All-Cap ex-u.s., 2% Barclays Global Aggregate ex-u.s., 8% Barclays U.S. 13 The Target 2045 Fund benchmark consists of 62% CRSP U.S. Total Market, 28% FTSE Global All-Cap ex-u.s., 2% Barclays Global Aggregate ex-u.s., 8% Barclays U.S. 14 The Target 2050 Fund benchmark consists of 62% CRSP U.S. Total Market, 28% FTSE Global All-Cap ex-u.s., 2% Barclays Global Aggregate ex-u.s., 8% Barclays U.S. 15 The Target 2055 Fund benchmark consists of 61% CRSP U.S. Total Market, 28% FTSE Global All-Cap ex-u.s., 3% Barclays Global Aggregate ex-u.s., 8% Barclays U.S. Important Note: For additional and more recent details regarding your investment alternatives, including: (a) Name of the issuer; (b) The alternative s objectives or goals; (c) The alternative s principal strategies and risks; (d) The alternative s portfolio turnover rate, you may call (800) or contact your Plan Sponsor or you may visit your Plan s website at (access the Investments tab and click on the investment alternative s name to view the fund s prospectus. A prospectus may not be available for non-registered investment alternatives.) Upon request, and at no charge, you will be provided with paper copies of the information available on the website, copies of prospectuses, financial statements or reports, values of shares or units of each designated investment alternative and the list of the assets comprising the portfolio of each designated investment. You may call (800) or contact your Plan Sponsor to request this information. Glossary of Terms Please visit for a glossary of investment terms relevant to the investment alternatives under this Plan. This glossary is intended to help you better understand your options. Learn more To learn more about investing, visit Benefits OnLine at Then select the Education Center tab. Here you can view a wealth of informative articles and videos intended to help you feel confident in your financial future at each stage of your life, whether you are just starting out, transitioning to retirement or somewhere in between. Our Risk Assessment and Investment Guide, available via the Investment Direction section of your Current Elections, is a guide that can help you understand your risk profile and how you might invest in your accounts.

11 SUMMARY ANNUAL REPORT For MACYS INC 401(K) RETIREMENT INVESTMENT PLAN This is a summary of the annual report for MACYS INC 401(K) RETIREMENT INVESTMENT PLAN, EIN , Plan No. 013, for period January 01, 2014 through December 31, The annual report has been filed with the Employee Benefits Security Administration, U.S. Department of Labor, as required under the Employee Retirement Income Security Act of 1974 (ERISA). Basic Financial Statement Benefits under the plan are provided by a trust fund. Plan expenses were $383,111,000. These expenses included $10,327,000 in administrative expenses, and $372,784,000 in benefits paid to participants and beneficiaries. A total of 172,976 persons were participants in or beneficiaries of the plan at the end of the plan year, although not all of these persons had yet earned the right to receive benefits. The value of plan assets, after subtracting liabilities of the plan, was $3,911,201,000 as of December 31, 2014, compared to $3,635,297,000 as of January 01, During the plan year the plan experienced an increase in its net assets of $275,904,000. The plan had total income of $659,015,000, including employer contributions of $93,321,000, employee contributions of $216,685,000, and earnings from investments of $349,009,000. Your Rights To Additional Information You have the right to receive a copy of the full annual report, or any part thereof, on request. The items listed below are included in that report: an accountant's report; financial information; information on payments to service providers; information regarding any common or collective trusts, pooled separate accounts, master trusts or investment entities in which the plan participates; To obtain a copy of the full annual report, or any part thereof, write or call Macy s, Inc., c/o Macy s Corporate Services, Inc., 7 West Seventh Street, Cincinnati, OH 45202, (888) To ensure proper handling, please include the plan number of the annual report being requested You also have the right to receive from the plan administrator, on request and at no charge, a statement of the assets and liabilities of the plan and accompanying notes, or a statement of income and expenses of the plan and accompanying notes, or both. If you request a copy of the full annual report from the plan administrator, these two statements and accompanying notes will be included as part of that report. You also have the legally protected right to examine the annual report at the main office of the plan (MACY S, INC., 7 W. 7TH ST, CINCINNATI, OH 45202) and at the U.S. Department of Labor in Washington, D.C., or to obtain a copy from the U.S. Department of Labor upon payment of copying costs. Requests to the Department should be addressed to: Public Disclosure Room, Room N1513, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue, N.W., Washington, D.C