News

Federated Eyes Bigger E-Business

BY CSA STAFF

Cincinnati, Federated Department Stores, Inc. plans to invest about $130 million over the next two years to boost its direct-to-consumer businesses, including macys.com, bloomingdales.com, Bloomingdale’s By Mail, macysweddingchannel.com and bloomingdalesweddingchannel.com. “On-line sales represent the fastest-growing part of our business and an outstanding opportunity for continued progress as we serve millions of new customers nationwide through our acquisition of May Company,” said Terry J. Lundgren, Federated’s chairman, president and CEO. “Our customers have told us they appreciate the convenience of shopping on line as well as in our stores. This cross-channel integration is a vital component of our ability to maximize the potential of the nationwide Macy’s and Bloomingdale’s brands.”

The company expects its direct-to-consumer segment to grow to more than $750 million by 2008, up from about $450 million in 2005.

Key investments include upgrading content and order-management systems, and building a new 595,000 sq. ft. distribution center, designed specifically for direct-to-consumer orders.

“With the initial steps of our planned improvements scheduled to be in place by spring 2007, we expect our direct-to-consumer sales to grow to more than $750 million by 2008 from about $450 million in 2005,” he said. These investments are part of the company’s capital plan for spending $1.6 billion in 2006 and between $1.1 billion and $1.2 billion in 2007. Groundbreaking for the new facility, to be built in Portland, TN, is expected in February 2006, with completion in spring 2007.

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News

Liz Claiborne CEO to Retire

BY CSA STAFF

New York City, Liz Claiborne Inc. announced on Tuesday that Paul Charron, chairman and CEO, plans to retire at the end of 2006, when his current contract expires.

Charron, 63, has served as CEO since 1995 and chairman since 1996. The company said it would consider both internal and external candidates to fill the position. Charron joined Liz Claiborne in 1994 as vice chairman, COO and a director.

Liz Claiborne also announced that executive VP Trudy Sullivan has been named president. Sullivan joined the firm in 2001. Previously, she had been president of J. Crew.

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SUPPLY CHAIN

Stop & Shop to Lay Off 850 Workers

BY CSA STAFF

Quincy, Mass., Stop & Shop Supermarket Co., a unit of Dutch grocer Ahold Ltd., said it would close its distribution facility in North Haven, Conn., by mid-2006, resulting in the loss of about 850 jobs. Distribution of products currently handled by the facility will be shifted to the company’s distribution center in Freetown, Mass., and to a third-party supplier, the company said.

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S.Gacho says:
Mar-29-2013 02:08 pm

It is very bad news to lay
It is very bad news to lay off workers. The families of the workers are really the ones most affected. The company lay off workers because they have financial problem. - Aldo Todini

S.Gacho says:
Mar-29-2013 02:08 pm

It is very bad news to lay off workers. The families of the workers are really the ones most affected. The company lay off workers because they have financial problem. - Aldo Todini

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Consumer confidence is high. Is that reflected in your stores’ revenues?

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