Federated announces plans for converting about 330 May Co. stores to the Macy’s brand and shutting about 70; Marshall Field’s still pending decision(visualstore.com)
Federated Department Stores Inc. (Cincinnati) has finally revealed some of its plans for the new locations it will acquire through its pending merger with The May Department Stores Co. (St. Louis).
The department store retailer said it will add about 330 Macy’s locations nationwide in 2006 as it converts some of its new regional department store nameplates. And it will shut nearly 70 stores where it feels there are duplicate locations.
The following May Company stores will be renamed Macy’s some time in fall 2006:
*Famous-Barr locations in Illinois, Indiana, Kentucky and Missouri;
*Filene’s locations in Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont;
*Foley’s locations in Colorado, Louisiana, New Mexico, Oklahoma and Texas;
*Hecht’s locations in Maryland, North Carolina, Pennsylvania, Tennessee, Virginia and the District of Columbia;
*The Jones Store locations in Kansas and Missouri;
*Kaufmann’s locations in New York, Ohio, Pennsylvania and West Virginia;
*L.S. Ayres locations in Indiana;
*Meier & Frank locations in Oregon, Utah and Washington;
*Robinsons-May locations in Arizona, California and Nevada; and
*Strawbridge’s locations in Delaware, New Jersey and Pennsylvania.
The company said the Lord & Taylor name will not be converted to the Macy’s brand. A decision regarding the Marshall Field’s name has not yet been made, pending further study.
In conjunction with the conversion process, Federated said it has identified 68 duplicate locations in 66 malls which will be divested starting in 2006. Included are 41 current May Company stores operating in 12 states under various nameplates, as well as 27 Federated stores operating in 14 states as Macy’s. Federated said the number of divestitures is consistent with its original expectations, and that it will continue to study the May Company store portfolio in light of the merger. Some plans may change as conversion dates approach.In addition to the locations being divested, a small number of stores are being studied for potential conversion to the Bloomingdale’s nameplate.
The current plan is to operate all May Company stores under their existing nameplates at least through the 2005 holiday shopping season. Divestiture of duplicate May Company and Macy’s locations will begin in 2006. They will be offered for sale to landlords, developers and interested third parties. Federated said it intends to comply with all existing lease and operating agreements, and the divestiture of certain locations will be subject to the satisfactory completion of negotiations with various third parties.
“Macy’s emerged as a premier national retailer in March 2005, when we changed Federated’s regional department store nameplates,” said Terry Lundgren, Federated’s chairman, president and ceo. “We will continue that process in 2006 by converting many of May Company’s regional store nameplates to Macy’s. With these additions, Macy’s will operate about 730 stores, representing virtually every major U.S. market.
“We have chosen to proactively announce our decisions as they are made so that our intentions are clear,” Lundgren added. “This decision to expand the Macy’s brand was based on careful study and new research on customer preferences in May Company communities. “Customers have told us they want the fashion and affordable luxury they find in Macy’s stores. We have strengthened the Macy’s brand with distinctive assortments, simplified pricing, an improved shopping experience and enhanced marketing. With this expanded geographic coverage, we now will be positioned to nationally advertise the Macy’s brand.”
Lundgren said Federated “respects that May Company’s regional store names are deeply rooted in their communities, we appreciate the heritage and traditions associated with those names, and we expect to continue to play an important role in the communities where our customers live and work. At the same time,” he said, “we also have learned from our own experience converting Federated’s regional nameplates. Our customers tell us through research and from their behavior that what’s inside a store -- the merchandise, the service, the people, the shopping environment - is what matters most. And this is where Macy’s excels.”
Personally, I'd rather see a Macy's than a Hects out in VA, I never got into Hects.
ReplyDeleteI guess this will be the deathnell of the Hects at Coliseum Mall in Hampton, though. (if this deal does happen I know that the Patrick Henry Hects will be converted, not too sure about the Coliseum one) Macy's probably wouln't like 2 Macy's that close to one another.
Another victory for the homogenization of the American retail experience. The days of the "local" department store are over.
ReplyDeleteI think it's possible that a counter-revolution will occour in retail.
ReplyDeleteIt's entirely plausible that former department store executives will find investors to start smaller locally-based departmnt stores in some of the shells May Company and Federated (and possibly Sears) are abandoning.
The capital is out there, and I think the interest is high. It'll be like how the banks got bigger and bigger and are being challenged by smaller, locally based regional banks, which are putting major dents in the mega-banks' bottom line.
Just a thought :-)