Lord & Taylor Could Grow

NEW YORK CITY-Lord & Taylor could open more stores, and the 48-store chain is currently trying to find a niche between upscale retailer Saks Inc. and Federated Department Stores’ more moderately-priced chain Macy’s, said Richard A. Baker, chairman of the company, speaking at the International Council of Shopping Centers’ New York National Conference. Purchase, NY-based shopping-center owner National Realty and Development, of which Baker is also vice chairman, closed on the acquisition of Lord & Taylor in October with private-equity partners in a deal worth nearly $1.1 billion.

Other options management is considering with the chain include reducing store size and adding either office or other retail uses to the department-store based units, Baker says. Those options are also being considered for the chain’s flagship location on Fifth Avenue here, he concedes. Lord & Taylor management currently plans to spend $250 million on renovating its stores chain wide. “We’re very bullish on the department-store business, and we’re very bullish on the Lord & Taylor brand,” Baker says. “What we want to do is better deal with some of their real estate.”

Baker was on a panel discussion here that spent much of its time examining department-store consolidation, private-equity buyouts of retailers and the changing face of the mall. “We’re very concerned about so many leveraged buyouts, but we’ve been going through this change with department-store consolidation for the last five or 10 years,” says Michael Stevens, executive vice president of retail leasing at Cleveland-based Forest City Enterprises.