Federated Launches Macys.Com Subsidiary

Federated Department Stores Inc., the largest U.S. department store company, said it will boost its business on the Internet through a new subsidiary called Macys.Com. Starting in October, more than 250,000 products from its Macy’s chain will be offered on its Web site, Federated said. Macys.Com will use the site to attract customers in areas that don’t have Federated stores and to test ideas for the company’s private-label brands. Federated, whose chains also include Bloomingdale’s and Lazarus, declined to estimate how much revenue it expects from online sales. Started in 1996, Macy’s Web site (https://www.macys.com) sells only a limited range of products now. Kent Anderson, 43, a former Macy’s West executive who led the Web site development, will be president of the subsidiary, which will be based in San Francisco. Macys.Com is negotiating with IBM to help develop the site. Shares of Cincinnati-based Federated rose 94 cents to close at $52.63 on the NYSE.