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Federated Department Stores

Federated Department Stores

Overview
Macy's, Inc. is a department store
Department store
A department store is a retail establishment which satisfies a wide range of the consumer's personal and residential durable goods product needs; and at the same time offering the consumer a choice of multiple merchandise lines, at variable price points, in all product categories...

 holding company
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...

 and owner of Macy's
Macy's
Macy's is a U.S. chain of mid-to-high range department stores. In addition to its flagship Herald Square location in New York City, the company operates over 800 stores in the United States...

 and Bloomingdale's
Bloomingdale's
Bloomingdale's is an American department store owned by Macy's, Inc. .Bloomingdale's started in 1861 when brothers Joseph and Lyman G. Bloomingdale started selling hoop-skirts in their Ladies Notions' Shop on Manhattan's Lower East Side...

 department stores. Macy's Inc.'s stores specialize mostly in retail
Retail
Retail consists of the sale of physical goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be...

 clothing, jewelery, watches, dinnerware, and furniture.

Macy's Inc. is headquartered in Cincinnati, Ohio
Cincinnati, Ohio
Cincinnati is a city in the U.S. state of Ohio. Cincinnati is the county seat of Hamilton County. Settled in 1788, the city is located to north of the Ohio River at the Ohio-Kentucky border, near Indiana. The population within city limits is 296,943 according to the 2010 census, making it Ohio's...

 and operates just over 850 stores in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

. The company's Macy's locations and related operations account for 90 percent of the company's revenue, while luxury-oriented Bloomingdale's stores and associated ventures represent the balance of the company's business.
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Encyclopedia
Macy's, Inc. is a department store
Department store
A department store is a retail establishment which satisfies a wide range of the consumer's personal and residential durable goods product needs; and at the same time offering the consumer a choice of multiple merchandise lines, at variable price points, in all product categories...

 holding company
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...

 and owner of Macy's
Macy's
Macy's is a U.S. chain of mid-to-high range department stores. In addition to its flagship Herald Square location in New York City, the company operates over 800 stores in the United States...

 and Bloomingdale's
Bloomingdale's
Bloomingdale's is an American department store owned by Macy's, Inc. .Bloomingdale's started in 1861 when brothers Joseph and Lyman G. Bloomingdale started selling hoop-skirts in their Ladies Notions' Shop on Manhattan's Lower East Side...

 department stores. Macy's Inc.'s stores specialize mostly in retail
Retail
Retail consists of the sale of physical goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be...

 clothing, jewelery, watches, dinnerware, and furniture.

Macy's Inc. is headquartered in Cincinnati, Ohio
Cincinnati, Ohio
Cincinnati is a city in the U.S. state of Ohio. Cincinnati is the county seat of Hamilton County. Settled in 1788, the city is located to north of the Ohio River at the Ohio-Kentucky border, near Indiana. The population within city limits is 296,943 according to the 2010 census, making it Ohio's...

 and operates just over 850 stores in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

. The company's Macy's locations and related operations account for 90 percent of the company's revenue, while luxury-oriented Bloomingdale's stores and associated ventures represent the balance of the company's business. Macy's is well known for its flagship department stores, most notably in New York, San Francisco, Los Angeles, Boston, the former Dayton's
Dayton's
Minneapolis-based Dayton's was among the leading department stores in the United States for nearly a century after its founding in 1902 by George Draper Dayton. In 1969, the Detroit-based J.L. Hudson Company merged with the Dayton Corporation to form the Dayton-Hudson Corporation, adding 21...

 in Minneapolis, the former Kaufmann's
Kaufmann's
Kaufmann's was a department store that originated in Pittsburgh, Pennsylvania. It was owned in the early 20th century by Edgar J. Kaufmann, patron of 'Fallingwater' and the Kaufmann's Desert House. In the post-war years the store became a regional chain in the eastern United States, and was last...

 in Pittsburgh, the former Burdine's in Miami, the former Wanamaker's
Wanamaker's
Wanamaker's department store was the first department store in Philadelphia, Pennsylvania, and one of the first department stores in the United States. At its zenith in the early 20th century, there were two major Wanamaker department stores, one in Philadelphia and one in New York City at Broadway...

 in Philadelphia, and the former Marshall Field's
Marshall Field's
Marshall Field & Company was a department store in Chicago, Illinois that grew to become a major chain before being acquired by Macy's Inc...

 location in Chicago and the former Famous-Barr
Famous-Barr
The Famous-Barr Co. , St. Louis, Missouri, was a division of Macy's, Inc. . It was formerly the hometown division of The May Department Stores Company, which was acquired by Federated on August 30, 2005. On February 1, 2006, it was subsumed into the newly created Macy's Midwest division.The...

 in St. Louis.

History


Macy's Inc. was founded as Federated Department Stores in 1929 in Columbus, Ohio
Columbus, Ohio
Columbus is the capital of and the largest city in the U.S. state of Ohio. The broader metropolitan area encompasses several counties and is the third largest in Ohio behind those of Cleveland and Cincinnati. Columbus is the third largest city in the American Midwest, and the fifteenth largest city...

. Federated was originally a department store holding company
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...

 for Abraham & Straus
Abraham & Straus
Abraham & Straus was a major New York City department store, based in Brooklyn. Founded in 1865, in 1929 it became part of Federated Department Stores, which eliminated the A&S brand shortly after its 1994 acquisition of R.H. Macy & Company...

, F&R Lazarus & Company
Lazarus (department store)
F&R Lazarus & Company — commonly known as Lazarus — was a regional department store retail chain operating primarily in the U.S. Midwest, and based in Columbus, Ohio...

 (including its Cincinnati division, then known as The John Albert Macy Company) and William Filene's Sons
Filene's
Filene's was a Boston-based department store owned by Federated Department Stores , and May Department Stores . It operated throughout New England and in New York.-Early years:...

 of Boston. Bloomingdale Brothers joined the organization in 1930. Federated moved its corporate offices to Cincinnati, Ohio
Cincinnati, Ohio
Cincinnati is a city in the U.S. state of Ohio. Cincinnati is the county seat of Hamilton County. Settled in 1788, the city is located to north of the Ohio River at the Ohio-Kentucky border, near Indiana. The population within city limits is 296,943 according to the 2010 census, making it Ohio's...

, in 1945.

Over the next few decades, Federated expanded nationwide, adding Rike Kumler of Dayton, Ohio (merged into Shillito's in the 1980s to become Shillito-Rike's); Burdines
Burdines
Burdines was a leading department store chain in the state of Florida. The first Burdines store was opened in Bartow, Florida in 1896., Burdines became part of Federated Department Stores, Inc in 1956...

 of Miami, Florida; John Albert Macy Jr. of Atlanta, Georgia; Foley's
Foley's
Foley’s was a chain of department stores owned by May Department Stores and headquartered in Downtown Houston, Texas. As of August 30, 2005, the division was dissolved and operation of the stores was assumed by Federated's Macy's West and Macy's South divisions. Foley's operated stores in Texas,...

 of Houston, Texas; Sanger Brothers and A. Harris, both of Dallas, Texas (which was merged with Sanger Brothers to form Sanger-Harris
Sanger-Harris
Sanger-Harris was a department store chain from 1961 to 1987. It was formed by Federated Department Stores in 1961 from two Dallas, Texas chains, Sanger Brothers and A. Harris and Co., that dated from the 19th century...

); Boston Store
Boston Store
-History:The Boston Store is mentioned in Theodore Dreiser's "Sister Carrie" published in 1900 and Carl Sandburg's Mamie, part of his 1916 Chicago Poems collection....

 of Milwaukee, Wisconsin; MainStreet
MainStreet
MainStreet was a department store chain based in Chicago, Illinois, United States. The chain was launched in November 1983 by Federated Department Stores . Throughout the 1980s, the chain expanded to twenty-nine stores in Illinois, Michigan and Minnesota...

 of Chicago, Illinois; Bullock's
Bullock's
Bullock's was a department store based in Los Angeles, California. The company operated full-line department stores all across California, with some stores in Arizona and Nevada. Bullock's also operated the more upscale Bullocks Wilshire in parts of Southern California.- History :Bullock's was...

, of Los Angeles; I. Magnin
I. Magnin
I. Magnin & Company was a San Francisco, California-based high fashion and specialty goods luxury department store. Over the course of its existence, it expanded across the West into Southern California and the adjoining states of Arizona, Oregon, and Washington...

, of San Francisco, California; Gold Circle
Gold Circle
Gold Circle was a discount department store chain based in Ohio. Founded in 1967, it was a division of Federated Department Stores with 76 stores when the chain was sold and dismantled in 1988...

; and Richway Discount Department Stores of Worthington, Ohio. In 1982, Federated acquired the Twin Fair, Inc.
Twin Fair, Inc.
The Twin Fair, Inc. was a discount department store chain based in Buffalo, New York. It was incorporated on March 22, 1956, and the first store opened on Walden Avenue. By 1959, four stores were in operation and sales stood at $2.5 million. In 1962, the founders sold the company to Unexcelled...

 discount store chain based in Buffalo, New York
Buffalo, New York
Buffalo is the second most populous city in the state of New York, after New York City. Located in Western New York on the eastern shores of Lake Erie and at the head of the Niagara River across from Fort Erie, Ontario, Buffalo is the seat of Erie County and the principal city of the...

 and merged it with Gold Circle.

Federated was the successor to the Lazarus operation begun in Columbus, Ohio, in 1851. Lazarus family members served in prominent positions within Federated through the 1980s. In the mid-1930s, a modern merchandising standard was set when Fred Lazarus (son of Simon) arranged garments in groups of a single size with a range of style, color and price in that size, rather than the other way around. Lazarus based this technique upon observations made in Paris. Fred Lazarus Jr.
Fred Lazarus, Jr.
Fred R. Lazarus, Jr. was the Jewish-American founder of Federated Department Stores . Born in Columbus, Ohio, Fred, the second of four brothers , grew up working in his family's store, F...

 also convinced President Franklin D. Roosevelt
Franklin D. Roosevelt
Franklin Delano Roosevelt , also known by his initials, FDR, was the 32nd President of the United States and a central figure in world events during the mid-20th century, leading the United States during a time of worldwide economic crisis and world war...

 that changing the Thanksgiving
Thanksgiving
Thanksgiving Day is a holiday celebrated primarily in the United States and Canada. Thanksgiving is celebrated each year on the second Monday of October in Canada and on the fourth Thursday of November in the United States. In Canada, Thanksgiving falls on the same day as Columbus Day in the...

 holiday from the last Thursday of November the fourth Thursday, extending the Christmas shopping season, this would be good for the nation's business. An Act of Congress perpetuated the arrangement in 1941. After this date "Black Friday" became a nation wide sensation, becoming the most profitable day for Macy's nation wide. Other companies tried to follow suit but failed to overcome what John Albert Macy had in mind. Various Lazarus family members also held key positions on Federated's board and within its various divisions—namely, Foley's, Filene's, Lazarus and Shillito's. As of January, 2002, Robert Lazarus Jr. was the only family member still with an official role at Federated, serving as assistant to Ron Klein, then chairman and CEO of the Rich's/Lazarus/Goldsmith's operating unit of Federated, now Macy's South.

In 1983 it sold most of its infrastructure to JMB Realty
JMB Realty
JMB Realty Corporation is a real estate investment company based in Chicago that at one time was one of the largest property developers in the United States. The company was founded as Robert Judelson & Co. in 1968...

.




To support its huge retail operations, Federated centralized its back-office functions into several large divisions, covering financial services, marketing, merchandising, logistics, and data processing systems. Other retailers' branded credit cards are usually issued and serviced by a third-party bank; Federated was so huge that it ran its own private bank, FDS Bank, which for many years issued and maintained the majority of its own consumer credit card portfolio with a portion at one time owned by General Electric Credit Corporation, an arrangement inherited from when R.H. Macy & Company
Macy's
Macy's is a U.S. chain of mid-to-high range department stores. In addition to its flagship Herald Square location in New York City, the company operates over 800 stores in the United States...

 sold their credit portfolio in an attempt to prevent filing for bankruptcy. In 2005 Federated finalized an arrangement with CitiGroup
Citigroup
Citigroup Inc. or Citi is an American multinational financial services corporation headquartered in Manhattan, New York City, New York, United States. Citigroup was formed from one of the world's largest mergers in history by combining the banking giant Citicorp and financial conglomerate...

 to sell its consumer credit portfolio, reissuing its cards under the Federated-CitiGroup Alliance name Department Stores National Bank (DSNB) and allowing Federated to continue servicing the credit accounts from its Financial, Administrative and Credit Services Group (Macy's Credit and Customer Services)

In 1990, Federated—now under the control of Robert Campeau
Robert Campeau
Robert Campeau is a Canadian financier and real estate developer.-Early years:His formal education ended in grade eight, at the age of 14. He talked himself into jobs at Inco as a general labourer, carpenter and machinist. In 1949 he entered the residential end of the construction business...

 -- went bankrupt after its hostile takeover
Takeover
In business, a takeover is the purchase of one company by another . In the UK, the term refers to the acquisition of a public company whose shares are listed on a stock exchange, in contrast to the acquisition of a private company.- Friendly takeovers :Before a bidder makes an offer for another...

 of Allied Stores
Allied Stores
Allied Stores was a department store chain in the United States. It was founded in the 1930s as part of a general consolidation in the retail sector by B. E. Puckett. See also Associated Dry Goods. It was the successor to Hahn's Department Stores, a holding company founded in 1928...

; it emerged from bankruptcy after the ouster of Campeau in 1992 as a new public company. Federated then took over Macy's
Macy's
Macy's is a U.S. chain of mid-to-high range department stores. In addition to its flagship Herald Square location in New York City, the company operates over 800 stores in the United States...

 in 1994 while that company was still emerging from its own bankruptcy in 1992. Federated entered e-commerce late, in 1998. FDS Bank was one of the last credit card banks to begin to allow its cardholders to access account information online (around 2004). The department store chain Stern's
Stern's
Stern's was a regional department store chain serving the U.S. states of New York, Pennsylvania, and New Jersey. The chain was in business for more than 130 years, prior to its 2001 integration into Macy's and Bloomingdale's...

, a division of Federated, ceased operations in 2001 and most of its stores became Macy's
Macy's
Macy's is a U.S. chain of mid-to-high range department stores. In addition to its flagship Herald Square location in New York City, the company operates over 800 stores in the United States...

 stores. In 2003, Federated changed the nameplates of all their non-Macy's stores, except Bloomingdale's, to include the Macy's name. The rebranding process was referred internally to as Project Hyphen. Under the plan, Seattle-based The Bon Marche
The Bon Marché
The Bon Marché, whose name means "the good deal" or "the good market", was the name chosen for a department store launched in Seattle, Washington, United States, in 1890 by Edward Nordhoff. The name comes from Le Bon Marché, a noted Paris retailer and one of the world's first department stores,...

 became Bon-Macy's; Goldsmith's in Tennessee became Goldsmith's-Macy's; Lazarus, Burdines, and Rich's also added "-Macy's" to their name. A year later, the original hyphenated names were dropped in favor of just Macy's, a rebranding process referred internally to as Project Star.

Federated settled an SEC investigation for $14.46 million in 1998 due to unethical debt-collection practices. Federated routinely forced credit card holders/debtors to sign an agreement that legally bound them to repay their outstanding balances instead of having the unsecured debt discharge via the filing of bankruptcy
Bankruptcy
Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....

. Federated failed to file reaffirmation agreements with bankruptcy courts. As a result, the changes in the agreements were not legally binding.

May Department Stores acquisition


On July 18, 2005, Federated Department Stores announced that they would acquire May Department Stores company for $11 billion in cash and stock. Also part of the buyout was the bridal and formal unit of May, consisting of David's Bridal
David's Bridal
David's Bridal is a clothier in the United States that specializes in wedding dresses, prom gowns, and other formal wear. It is the largest American bridal-store chain.David's Bridal currently operates more than 300 stores in 45 states, Canada and Puerto Rico...

 and After Hours Formalwear
After Hours Formalwear
MW Tux was a division of Men's Wearhouse clothier that specialized in the renting of tuxedos and formal wear for men. In late 2008, the MW Tux Brand was rolled up into the Men's Wearhouse brand, and ceased being an independent brand....

. Federated would also assume $6 billion of May's debt, bringing total consideration to $17 billion. The deal would create the nation's largest department store chain with over 1,000 stores and $30 billion in annual sales. To help finance the deal, Federated agreed to sell its combined proprietary credit card business (but still administrated by FACS Group, a subsidiary of Federated) to Citigroup
Citigroup
Citigroup Inc. or Citi is an American multinational financial services corporation headquartered in Manhattan, New York City, New York, United States. Citigroup was formed from one of the world's largest mergers in history by combining the banking giant Citicorp and financial conglomerate...

. The merger was completed on August 30, 2005, after an assurance agreement was reached with the State Attorneys General of New York, California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...

, Massachusetts
Massachusetts
The Commonwealth of Massachusetts is a state in the New England region of the northeastern United States of America. It is bordered by Rhode Island and Connecticut to the south, New York to the west, and Vermont and New Hampshire to the north; at its east lies the Atlantic Ocean. As of the 2010...

, Maryland
Maryland
Maryland is a U.S. state located in the Mid Atlantic region of the United States, bordering Virginia, West Virginia, and the District of Columbia to its south and west; Pennsylvania to its north; and Delaware to its east...

 and Pennsylvania
Pennsylvania
The Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to...

.

Federated announced plans to sell 80 store locations in 2006, having pledged in its settlement to sell most of them as viable businesses, with preference being given to a group of thirteen competitors. This number could fluctuate pursuant to Federated's negotiations with various mall landlords and its final decision regarding using former Macy locations for its luxury Bloomingdale's
Bloomingdale's
Bloomingdale's is an American department store owned by Macy's, Inc. .Bloomingdale's started in 1861 when brothers Joseph and Lyman G. Bloomingdale started selling hoop-skirts in their Ladies Notions' Shop on Manhattan's Lower East Side...

 operation.

On January 12, 2006, Federated announced its plans to divest May Company's Lord & Taylor
Lord & Taylor
Lord & Taylor, colloquially known as L&T, or LT, based in New York City, is the oldest upscale, specialty-retail department store chain in the United States. Concentrated in the eastern U.S., the retailer operated independently for nearly a century prior to joining American Dry Goods...

 division (55 stores in 12 states) by the end of 2006 after concluding that chain did not fit with their strategic focus for building the Macy's
Macy's
Macy's is a U.S. chain of mid-to-high range department stores. In addition to its flagship Herald Square location in New York City, the company operates over 800 stores in the United States...

 and Bloomingdale's
Bloomingdale's
Bloomingdale's is an American department store owned by Macy's, Inc. .Bloomingdale's started in 1861 when brothers Joseph and Lyman G. Bloomingdale started selling hoop-skirts in their Ladies Notions' Shop on Manhattan's Lower East Side...

 national brands. On June 22, 2006, Macy's announced that NRDC Equity Partners, LLC would purchase Lord & Taylor for US$1.2 billion, and completed the sale in October 2006.

On September 9, 2006, May Company division stores Famous-Barr
Famous-Barr
The Famous-Barr Co. , St. Louis, Missouri, was a division of Macy's, Inc. . It was formerly the hometown division of The May Department Stores Company, which was acquired by Federated on August 30, 2005. On February 1, 2006, it was subsumed into the newly created Macy's Midwest division.The...

, Filene's
Filene's
Filene's was a Boston-based department store owned by Federated Department Stores , and May Department Stores . It operated throughout New England and in New York.-Early years:...

, Foley's
Foley's
Foley’s was a chain of department stores owned by May Department Stores and headquartered in Downtown Houston, Texas. As of August 30, 2005, the division was dissolved and operation of the stores was assumed by Federated's Macy's West and Macy's South divisions. Foley's operated stores in Texas,...

 (the prior two were former Federated stores in their own right), Hecht's
Hecht's
Hecht's, also known as Hecht Brothers, Hecht Bros. and the Hecht Company, was a large chain of department stores located mainly in the mid-Atlantic and southern region of the United States....

, The Jones Store
The Jones Store
The Jones Store Company was an American chain of department stores located in the Kansas City area formerly operated by Mercantile Stores Company and the St. Louis, Missouri-based May Co.-History:...

, L. S. Ayres, Marshall Field's
Marshall Field's
Marshall Field & Company was a department store in Chicago, Illinois that grew to become a major chain before being acquired by Macy's Inc...

, Meier & Frank
Meier & Frank
Meier & Frank was a chain of department stores founded in Portland, Oregon, and later bought out by the May Department Stores Company. Meier & Frank operated in the Pacific Northwest from 1857 to 2006.-History:Summary...

, Robinsons-May
Robinsons-May
Robinsons-May was a chain of department stores operating in Southern California, Arizona and Las Vegas, Nevada, previously with headquarters in North Hollywood, California...

, and Strawbridge's
Strawbridge's
Strawbridge's was a department store in the northeastern United States with stores in Pennsylvania, New Jersey and Delaware. In its day a gracious urban emporium, the downtown Philadelphia flagship store added branch stores starting in the 1930s and together they enjoyed annual sales of over a...

 brands ceased to exist as Federated replaced most of them with the Macy's
Macy's
Macy's is a U.S. chain of mid-to-high range department stores. In addition to its flagship Herald Square location in New York City, the company operates over 800 stores in the United States...

 masthead, and a select few converting to the Bloomingdale's
Bloomingdale's
Bloomingdale's is an American department store owned by Macy's, Inc. .Bloomingdale's started in 1861 when brothers Joseph and Lyman G. Bloomingdale started selling hoop-skirts in their Ladies Notions' Shop on Manhattan's Lower East Side...

 brand. The conversion of Marshall Field's
Marshall Field's
Marshall Field & Company was a department store in Chicago, Illinois that grew to become a major chain before being acquired by Macy's Inc...

 in Chicago has been particularly criticized, with many customers boycotting the State Street store and staying away from the emporium. The Chicago Tribune
Chicago Tribune
The Chicago Tribune is a major daily newspaper based in Chicago, Illinois, and the flagship publication of the Tribune Company. Formerly self-styled as the "World's Greatest Newspaper" , it remains the most read daily newspaper of the Chicago metropolitan area and the Great Lakes region and is...

 continues to report on the poor reception of Macy's in Chicago. Kaufmann's
Kaufmann's
Kaufmann's was a department store that originated in Pittsburgh, Pennsylvania. It was owned in the early 20th century by Edgar J. Kaufmann, patron of 'Fallingwater' and the Kaufmann's Desert House. In the post-war years the store became a regional chain in the eastern United States, and was last...

 in Pittsburgh also had a dislike to the change most due to the concern of the local parade run by the store. Other stores like Famous-Barr
Famous-Barr
The Famous-Barr Co. , St. Louis, Missouri, was a division of Macy's, Inc. . It was formerly the hometown division of The May Department Stores Company, which was acquired by Federated on August 30, 2005. On February 1, 2006, it was subsumed into the newly created Macy's Midwest division.The...

 in St. Louis
St. Louis, Missouri
St. Louis is an independent city on the eastern border of Missouri, United States. With a population of 319,294, it was the 58th-largest U.S. city at the 2010 U.S. Census. The Greater St...

 also disliked the change, but not nearly as much as Marshall Field's.

One of the consequences of this rebranding
Rebranding
Rebranding is the creation of a new name, term, symbol, design, or a combination of them for an established brand with the intention of developing a differentiated position in the mind of stakeholders and competitors....

 is that over 80 U.S. malls now have two Macy's department stores. In Downtown Boston, Federated liquidated an acquired Filene's
Filene's
Filene's was a Boston-based department store owned by Federated Department Stores , and May Department Stores . It operated throughout New England and in New York.-Early years:...

 because it already had a Macy's (formerly a Jordan Marsh
Jordan Marsh
Jordan Marsh & Company was a department store in Boston, Massachusetts, which grew to be a major regional chain in the New England area of the United States. In 1996, the last of the Jordan Marsh stores were converted to Macy's. The store was formerly part of Allied Stores and then Federated...

) across the street. The two stores have a combined floorspace of more than 1400000 square feet (130,064.3 m²), more than two-thirds the size of Macy's New York City flagship store.

On November 17, 2006, the bridal and formal unit was sold. David's Bridal and Priscilla of Boston were sold to Leonard Green & Partners
Leonard Green & Partners
Leonard Green & Partners is a private equity firm specializing in leveraged buyout transactions, particularly of middle market companies. As of 2010, the firm had with approximately $9 billion in assets under management....

. After Hours Formalwear was sold to Men's Wearhouse
Men's Wearhouse
Men's Wearhouse is a men's dress apparel retailer in the United States. The company is based in the Westchase area of Houston, Texas, and it is publicly traded on the New York Stock Exchange...

.

Transition to Macy's, Inc.


On February 27, 2007, Federated announced that its Board of Directors would ask shareholders to change the company's name to Macy's Group, Inc. By March 28, the company revised its plans for the new name, opting to eventually become Macy's, Inc. Federated shareholders approved the revised proposal during the company's annual meeting on May 18, 2007.http://biz.yahoo.com/ap/070518/federated_macy_s.html?.v=1.The company was previously known as Federated Retail Holdings, Inc.

The name took effect on June 1, 2007. Reasoning for the proposed name change, according to Terry Lundgren, Federated's chairman, president and chief executive officer — hinges on the large-scale conversions throughout the company toward the Macy's nameplate. "Today, we are a brand-driven company focused on Macy's and Bloomingdale's, not a federation of department stores," Lundgren said in the company's press release heralding the proposed name. Upon the change to Macy's Inc., Federated's stock ticker symbol on the New York Stock Exchange changed from "FD" to "M", making the new Macy's Inc. one of a handful of single-letter ticker symbol
Ticker symbol
A stock symbol or ticker symbol is a short abbreviation used to uniquely identify publicly traded shares of a particular stock on a particular stock market. A stock symbol may consist of letters, numbers or a combination of both. "Ticker symbol" refers to the symbols that were printed on the ticker...

 companies.

In April, 2008, Moody's Investors Service said that it may downgrade Macy's Inc. bonds to just above junk status. That same month, Fitch Ratings downgraded their ratings to BBB- from BBB, noting a deterioration in the company's operating and credit metrics. A rating of BBB- is one notch above junk status.

The domain macysinc.com attracted at least 3 million visitors annually by 2008 according to a Compete.com
Compete.com
Compete.com is a web traffic analysis service of Compete, Inc. which operates in the United States and publishes the approximate number of global visitors to the top 1,000,000 web sites in the world...

 survey.

Downsizing


On Wednesday, February 6, 2008, Terry Lundgren announced the localization strategy and the company's plan to shed 2,550 jobs. This new localization strategy is known as "My Macy's."

Employees of the Macy's North headquarters office in Minneapolis, the Macy's Northwest headquarters office in Seattle, and the Macy's Midwest headquarters office in St. Louis were given pink slips, as Macy's pared its seven regional centers to four. Buyers, accountants and senior executives lost their jobs. About 40 new jobs will be created in May as part of the restructuring.

By 2009, the company expects to save $100 million a year from the cuts.

On February 2, 2009 Macy's said it will cut 7,000 jobs, or 4 percent of its work force, and slash its dividend as it looks to lower expenses.
Cincinnati-based Macy's Inc. said the work force reduction includes positions in offices, stores and other locations. The cuts will include some unfilled jobs.
"Reducing our workforce is an unfortunate outcome of the current economic environment, and I am frustrated that so many of our people will be unable to move forward with us as we proceed into a very exciting future for Macy’s and Bloomingdale's
Bloomingdale's
Bloomingdale's is an American department store owned by Macy's, Inc. .Bloomingdale's started in 1861 when brothers Joseph and Lyman G. Bloomingdale started selling hoop-skirts in their Ladies Notions' Shop on Manhattan's Lower East Side...

" said Terry J. Lundgren
Terry J. Lundgren
Terry J. Lundgren is the CEO, Chairman of the Board, President, and Director at Macy's, Inc., the parent company of Macy's and Bloomingdale's department stores....

, chairman, president and chief executive officer. "

Macy's will also begin getting rid of its division structure and integrating its functions into one organization, effective immediately. Macy's central buying, merchandise planning, stores senior management and marketing functions will be located primarily in New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...

. Corporate-related business functions, such as finance and human resources, will be primarily in Cincinnati. To buy with local consumers in mind, Macy's developed a concept called "My Macy's", in which the buyers and planners all look at what the local consumer base is looking for in their local Macy's store. This will help bring a better sense of branding, sizing and marketing to each Macy's store nationwide.

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