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Federated, Allied Sales Slip: Federated Department Stores Inc. and Allied Stores Corp. said sales fell 2% in October to $533.9 million, partly because of a cutback in stores. Sales at stores open at least a year, however, were up 2.4%. Operating cash flow at the Cincinnati-based chains was $33 million, up from $28.2 million in October of last year. The increase in operating cash flow is an indication that the retailers are making progress toward emerging from bankruptcy court protection, analysts said. Campeau Corp., which owns the department stores, also owns Ralphs supermarket chain in Southern California.