330 MAY STORES TO CONVERT TO MACY'S AS MACY'S BRAND BECOMES NATIONAL
CINCINNATI -- The Macy's name will become a completely national department store brand in 2006. Approximately 330 of the regional department stores now operated by The May Co. will become Macy's stores under the plan, according to Federated Department Stores, Inc.
"With these additions, Macy's will operate about 730 stores, representing virtually every major U.S. market. With this expanded geographic coverage, we now will be positioned to nationally advertise the Macy's brand," said Terry Lundgren, Federated's chairman, president and CEO.
The name change is part of the pending merger of Federated with The May Department Stores Company.
"Macy's emerged as a premier national retailer in March 2005, when we changed Federated's regional department store nameplates. We will continue that process in 2006 by converting many of May Company's regional store nameplates to Macy's,€VbCrLf Lundgren said.
The following May Company stores will be renamed Macy's some time in 2006:
- Famous-Barr locations in Illinois, Indiana, Kentucky and Missouri.
- Filene's locations in Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont.
- Foley's locations in Colorado, Louisiana, New Mexico, Oklahoma and Texas.
- Hecht's locations in Maryland, North Carolina, Pennsylvania, Tennessee, Virginia and the District of Columbia.
- The Jones Store locations in Kansas and Missouri;
- Kaufmann's locations in New York, Ohio, Pennsylvania and West Virginia.
- L.S. Ayres locations in Indiana.
- Meier & Frank locations in Oregon, Utah and Washington.
- Robinsons-May locations in Arizona, California and Nevada.
- Strawbridge's locations in Delaware, New Jersey and Pennsylvania.
A decision regarding the Marshall Field's name has not yet been made, pending further study, according to the company. The Lord & Taylor name will not be converted to the Macy's brand.
"We respect that May Company's regional store names are deeply rooted in their communities, we appreciate the heritage and traditions associated with those names, and we expect to continue to play an important role in the communities where our customers live and work," Lundgren said.
"At the same time, we also have learned from our own experience converting Federated's regional nameplates. Our customers tell us through research and from their behavior that what's inside a store - the merchandise, the service, the people, the shopping environment - is what matters most. And this is where Macy's excels."
Federated will also divest itself of 68 stores in 66 malls, beginning in 2006. The company has identified these stores as duplicate locations. Included are 41 current May Company stores operating in 12 states under various nameplates, as well as 27 Federated stores operating in 14 states as Macy's.
Federated said the number of divestitures is consistent with its original expectations, and that it will continue to study the May Company store portfolio in light of the merger.
In addition to the locations being divested, a small number of stores are being studied for potential conversion to the Bloomingdale's nameplate.
Locations identified for divestiture accounted for approximately $2 billion of 2004 sales. They will be offered for sale to landlords, developers and interested third parties. Federated said it intends to comply with all existing lease and operating agreements, and the divestiture of certain locations will be subject to the satisfactory completion of negotiations with various third parties.
The current plan is to operate all May Company stores under their existing nameplates at least through the 2005 holiday shopping season, the company stated.
"We have chosen to proactively announce our decisions as they are made so that our intentions are clear," Lundgren said. "This decision to expand the Macy's brand was based on careful study and new research on customer preferences in May Company communities," he added.
"Customers have told us they want the fashion and affordable luxury they find in Macy's stores. We have strengthened the Macy's brand with distinctive assortments, simplified pricing, an improved shopping experience and enhanced marketing,"Lundgren said. "And with additional Macy's stores, more customers than ever will benefit from our Macy's Star Rewards customer loyalty program, gift cards that can be used across the country and a nationwide wedding registry."
Once duplicate stores are divested, the remaining Macy's in that location will include employees from both locations, according to Lundgren. "The company expects to employ all management personnel in good standing from both stores and to offer positions to the vast majority of associates," said Lundgren.
"Federated has earned a reputation for attracting and retaining the best people in retailing," Lundgren said. "By fusing the talents of Macy's and May Company associates, we believe our stores will maintain a high level of professionalism, performance and selling service for the customer.
"It is important for associates of both companies to understand that we will be as sensitive and caring as possible throughout this process. We will honor the pledge made previously to May Company associates that there will be no workforce reductions or job eliminations as a result of the merger prior to March 1, 2006," he said.
Shareholders of Federated and May Company have approved the merger, which is expected to close in the third quarter of 2005, pending completion of regulatory review.
Federated, with corporate offices in Cincinnati and New York, has annual sales of more than $15.6 billion. Federated operates more than 450 department stores in 34 states, Guam and Puerto Rico under the names of Macy's and Bloomingdale's. The company also operates macys.com and Bloomingdale's By Mail.