(Ian Ritter is national online editor for GlobeSt.com/RETAIL.)
CINCINNATI-Beginning next year Federated Department Stores will close 68 duplicate units in 66 malls after it completes its $11-billion acquisition of May Department Stores, which executives expect to close some time this quarter. Forty-one of the stores will be in May's current portfolio, and the remainder are Federated units under the Macy's name.
In addition, Federated is converting 330 of the 487 units it will get from the merger into the Macy's chain. That move will bring the total number of US Macy's units to about 730. The units closing had about $2 billion in combine sales, say Federated executives.
Federated is closing stores in states from coast to coast, though mostly in California. Select stores in the regional May chains Famous-Barr, Filene's, Hecht's, Kaufmann's, L.S. Ayres, Strawbridge's and Robinsons-May will shut their doors. Among the notable malls that will lose an anchor are General Growth Properties' Glendale (CA) Galleria; the Mills Corp.'s Del Amo Fashion Center, Torrance, CA; and Simon Property Group's Galleria, in Houston.
Federated will convert stores in the regional chains that aren't closing into Macy's. Foley's, the Jones Store and Meier & Frank are May's other regional chains. Some stores are also being considered for transformation into Federated's other, more upscale, Bloomingdale's chain.
Federated executives say they do not plan to convert May's 54 Lord & Taylor units into other chains. No decision has been made on the fate of May's 60 Marshall Field's units, they say.
Earlier this year, Federated converted all of 184 stores in its regional chains, such as Burdine's and Lazarus, into Macy's, bringing its number of stores to more than 400.
Federated executive have not announced what they will do with May's non-department-store chains. The St. Louis-based company also operates 702 units in its Bridal Group under the names After Hours, David's Bridal and Priscilla of Boston.
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