NEW YORK (AFX) - An analyst said Tuesday Federated Department Stores Inc.'s integration of May Co. Stores into its Macy's brand is working so far.
Federated acquired May Co. last year. The company expects to finish converting the May Department Stores to Macy's by September, making Macy's the first nationwide department store chain.
"Although Federated's major re-branding strategy does not kick off until Sept. 9, we have received early indication that integration of the May stores to the new Macys format is performing well," wrote Merrill Lynch analyst Stacy Turnof in a research note Tuesday.
Merrill Lynch surveyed 50 stores, and found that 88 percent of sales associates were "pleased" with the changes and 74 percent of customers have been reacting "positively" to the changes.
"We believe that those customers still loyal to the May brand will change their minds over the next few months as improvements in merchandise and store shoppability become more obvious," Turnof wrote.