Federated places Lord & Taylor stores up for sale
By Lorrie Grant
USA Today
Federated Department Stores put its newly acquired Lord & Taylor division on the auction block yesterday as it focuses on expanding its Macy's and Bloomingdale's brands.
Cincinnati-based Federated got the 55 Lord & Taylor stores in its August purchase of May Department Stores.
"Lord & Taylor does not fit with our strategic focus for building the Macy's and Bloomingdale's national brands," Federated CEO Terry Lundgren said in a statement. He said the company expects to close a sale this year.
Lord & Taylor, a somewhat upscale department store group, has struggled for a niche, and declining sales hit $1.6 billion in 2004.
Shedding Lord & Taylor is Lundgren's final major move in sorting out the $12 billion May acquisition. Previous steps include divesting the David's Bridal and After Hours formal wear stores owned by May.
The Lord & Taylor decision was not a surprise to industry experts.
"Everybody expected it to happen because Lord & Taylor had lost its cachet," says Kurt Barnard, president at Barnard's Retail Consulting Group. "It seemed to be a left shoe on the right foot. It didn't fit into the overall scheme of the Federated stores."