Federated Focuses on Macy’s, Bloomie’s Brands

NEW YORK Federated Department Stores plans to convert all of its regional stores to the Macy’s nameplate in January 2005 in a bid to leverage the national power of its two retail brands, Macy’s and Bloomingdale’s.

The Cincinnati company’s decision will affect Lazarus-Macy’s stores in the Midwest, as well as Burdines-Macy’s in Florida, Bon-Macy’s in the Pacific Northwest, Goldsmith’s-Macy’s in Tennessee and Rich’s-Macy’s in the Southeast. The managements, organizational structures and operations of the three divisions operating stores under these hyphenated nameplates will be unaffected by this announcement. The 184 retail locations converting to Macy’s will join the 239 department stores that already operate under that name in 19 Eastern and Western states, Guam and Puerto Rico, according to the company.

“The evolution of the Macy’s brand is a significant development for our company and its competitive positioning in the retail sector,” Terry Lundgren, Federated’s chairman, president and CEO, said in a statement. “By focusing all of our efforts on Macy’s and Bloomingdale’s, we will be able to maximize the incredible potential inherent in both of these brands through distinctive, consistent and far-reaching marketing initiatives.”

Operating under a single Macy’s nameplate will also give the company increased ability to develop exclusive merchandising arrangements with vendors, Lundgren said, as well as expand its own private brands such as INC, Tasso Elba, the Hotel Collection, Alfani and Charter Club. He added that the company also expects this decision to lead to cost efficiencies over time by leveraging areas such as collateral materials in marketing, visual and credit.

Macy’s lead advertising agency is Interpublic Group’s Lowe in New York.

—Brandweek staff report