Federated Tightens Web Focus
Federated Department Stores on Thursday said it would tighten its Internet focus by using its Bloomingdales.com Web site largely as a marketing vehicle and limit the variety of merchandise sold through its Macys.com Internet arm.
About 100 jobs will be eliminated in the restructuring of the New York-based Federated Direct operation, and the parent firm will take a fourth-quarter charge of $50 million to $60 million.
The consolidations are in keeping with a retail industry trend that has seen bricks-and-mortar retailers and catalog operators treat online sales as one more avenue to reach consumers.
“It’s a smart move,†said Jeff Stinson, retail analyst with Midwest Research. “These are businesses that weren’t making money and weren’t large revenue drivers for the company.â€
“In the current economic climate, it is important that we use our available resources in the most productive way possible,†said Jeffrey Sherman, chairman of Federated Direct, which operates the company’s online ventures.
Bloomingdales.com will maintain its bridal registry. Macys.com will eliminate slower-selling categories, including swimwear, and expand such popular categories as bridal merchandise and jewelry.
Cincinnati-based Federated’s shares closed down 63 cents Thursday at $37.07 on the New York Stock Exchange.
*
Times wire services were used in compiling this report.
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