Macy’s has the potential to leverage its volume and has become the exclusive distributor of such brands as Tommy Hilfiger, Martha Stewart, and T. Tahari. Over time, this could become a unique asset, supplying differentiation and margin in all sectors. Terry Lundgren and Sue Kronick are in the process of creating a unique and potentially very powerful retailing organization. While it is clear there have been inevitable bumps in the road, their long-term objective is very clear, and they have consistently moved toward it.