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CINCINNATI-Federated Department Stores Inc. plans to close three Midwest distribution centers early next year in an effort designed to streamline operations and reduce redundancies introduced with the 2005 acquisition of the May Department Store Co. The three facilities, totaling 904,000-sf and employing 296, are located in Kansas City, KS; Warren, MI; and Minneapolis. On Nov. 16, Federated announced that the month-long process to phase out operations at the three facilities would begin Feb. 4, 2007.

Disposition plans for the three facilities, which were part of the May acquisition, have not been finalized, a company spokesperson tells GlobeSt.com. Two of the properties--a 212,000-sf facility in Warren, MI and a 550,000-sf facility in Minneapolis--are owned by Federated. The company leases the 142,000-sf distribution center in Kansas City, KS. All three facilities are currently operated by the Federated Logistics division. Other distribution centers in the region, including facilities in St. Louis; Chicago; Bridgeton, MO; and North Jackson, OH, will absorb the volume handled by the centers as they are phased out, says the company.

Beginning in February, work force reductions also are planned for the Chicago, St. Louis and Bridgeton centers. Changes in operating procedures, which includes the possible outsourcing of delivery and merchandise transportation, are expected to affect 164 positions.