Federated Plans to Divest Lord & Taylor
Cincinnati, Terry Lundgren has made up his mind: Lord & Taylor is out. Federated Department Stores, Inc. plans to divest its Lord & Taylor division and the company expects to complete a transaction prior to the end of 2006.
“After a thorough review, we have concluded that Lord & Taylor does not fit with our strategic focus for building the Macy’s and Bloomingdale’s national brands,” said Lundgren, Federated’s chairman, president and CEO. “However, Lord & Taylor is a niche specialty retailer with a great name, many outstanding locations, an experienced management team and a strong customer following that makes it a desirable business.”
Lord & Taylor, based in New York, operates 55 stores in New Jersey, New York, Illinois, Massachusetts, Connecticut, Maryland, Virginia, Michigan, Pennsylvania, Missouri, Delaware, Florida and the District of Columbia. The division’s 2004 sales were $1.566 billion.
Federated will now account for Lord & Taylor as a discontinued operation in its monthly sales and quarterly earnings reports. This is expected to reduce fourth quarter 2005 earnings from continuing operations by approximately 10? per share.
Goldman Sachs and JPMorgan Chase are advising Federated in the divestiture process.
SuperValu Opens First Organic Foods Store
Minneapolis, SuperValu cut the ribbon on its first Sunflower Market store, the food wholesaler’s new organic-foods concept. The Indianapolis location occupies 12,000 sq. ft. and stocks between 8,000 and 12,000 SKUs. SuperValu plans to have 50 Sunflower Supermarket locations within five years.
Saks Names HR Head
Birmingham, Ala., Saks, Inc. named Charles G. Tharp executive VP of human resources. He will oversee human resources for the entire company from Saks’ New York City office. Tharp was most recently a professor of human resources at Rutgers University’s School of Management and Labor Relations.