Federated begins Kaufmann's conversion

By Ron DaParma
PITTSBURH TRIBUNE-REVIEW

PITTSBURH - Shoppers at area Kaufmann's stores should soon notice changes as Federated Department Stores Inc. begins converting stores to its Macy's brand after last year's purchase of May Department Stores Co.

Federated plans a gradual transformation of the merchandise mix at Kaufmann's outlets, leading up to a formal conversion of the two retailers' operations in September, said Jim Sluzewski, a spokesman for the Cincinnati-based parent of Macy's and Bloomingdale's.

Already, Kaufmann's remaining private label brands -- other than the Karen Scott and John Ashford labels that will be retained at Macy's -- are being sold off and will not be replenished, Sluzewski said.

Macy's private labels will begin flowing into Kaufmann's stores throughout the spring and summer.

And beginning Feb. 6, holders of Kaufmann's and Macy's gift and credit cards will be able to use the cards at both stores.

He said sign changes at stores will also be gradual leading up to the formal September switch.

Federated had pledged not to cut any jobs before March 1 as part of the acquisition of its formal rival.

Its plans include eliminating as many as 6,200 jobs nationwide this year as it integrates operations. Those include about 4,500 positions to be eliminated beginning in March as it phases out May's divisional operations in Boston, Houston, Arlington, Va. and Los Angeles.

The remaining 1,700 cuts are to be in St. Louis at May's corporate offices.

The company recently told local newspapers, including the Pittsburgh Tribune-Review, that advertising for Kaufmann's stores in this area will be handled out of what is now known as Macy's Midwest in St. Louis, rather than Boston, as it had under May.

In Western Pennsylvania, Federated has said it will convert the Kaufmann's former flagship store Downtown to Macy's, and seven other suburban locations to Macy's. Federated previously converted six former Lazarus stores to the Macy's brand.

In addition, it will close or sell three suburban stores -- Kaufmann's at South Hills Village and Monroeville Mall, and its Macy's store at Ross Park Mall.

Federated has an agreement with state Attorney General Tom Corbett to give priority in selling those three outlets -- and four Strawbridge's stores in eastern Pennsylvania -- to other department stores.

The Pennsylvania deal mentions Boscov's, Bon-Ton, Dillard's, GottSchalks, Nordstrom, Neiman-Marcus, Saks Fifth Avenue, Saks Department Store Group, Belks, Proffits, MacRae's and Von Maur as possibilities.

In May, Simon Property Group, owner of the Ross Park and South Hills Village malls, confirmed that Seattle-based Nordstrom, an upscale department store chain known for excellent customer service and top-notch merchandise, is interested in both those locations.

Herb Berger, a former advertising executive spearheading a private effort to redevelop the Fifth-Forbes retail corrider Downtown, said that Nordstrom representatives, at the invitation of Federated, visited the Pittsburgh area recently to look over those mall sites.