Penney Exec Plays Down Macy's

PLANO, TX-Though Federated Department Stores executives expect to complete the re-branding of Macy’s into a national chain next month, Myron Ullman, chairman and chief executive officer of J.C. Penney, says he’s not worried. The longevity of J.C. Penney and its lower price point from Macy’s will keep the company on track, he says.

About 400 stores that Federated acquired from May Department Stores last year under the banners of Marshall Field’s, Strawbridge’s and others will be converted next month. “They are saying that they are the first national department-store chain, which is kind of interesting, since we’ve been a national department-store chain for 104 years,” Ullman said during the company’s second-quarter conference call.

While Macy’s will have larger national footprint, J.C. Penney is also experiencing growth. Executives plan to open 50 new stores per year, most of them stand-alone units, from next year through 2009. Of the 28 new units scheduled to open this year, 25 are planned for the third quarter alone. Capital expenditures for the year are projected to be $800 million.