Macy’s Banner to Fly Over May
Cincinnati, Federated Department Stores Inc. will convert 330 stores owned by May Department Stores Co. to Macy’s after Federated’s takeover of May is complete. Famous-Barr, Filene’s, Hecht’s and Kaufmann’s are among the banners to be converted to Macy’s as of fall 2006, according to Jim Sluzewski, Federated spokesman. Federated will also sell 68 stores, 27 of which are Federated stores, in 2006. The company said that after the conversions take place, there will be 730 Macy’s nationwide.
Federated will keep the Lord & Taylor name, which represents 58 stores. It is still studying the Marshall Field’s name, which represents 60 stores. The company says it will not eliminate any jobs before March 1, and all May stores will keep their current names until after this year’s holiday season.
Safeway’s Sales Increase
Pleasanton, Calif., Safeway saw its comparable-store sales increase 3.3% and its identical-store sales increase 2.8% for the second quarter of 2005. The company’s total sales increased 4.7% to $8.8 billion for the second quarter of 2005. Last year, Safeway’s total sales were $8.4 billion for the second quarter.
Safeway believes the increase is due to its marketing strategies and recovery from the strike in Southern California last year. Steve Burd, chairman, president and CEO of Safeway, said, “Our strategy to differentiate our offering has resulted in broad-based sales improvement.”
Net income for Safeway, however, decreased for the second quarter. This year’s income was $134 million while last year’s was $155.2 million.
Food Lion Hires Ex-Kroger Exec
Salisbury, N.C., Food Lion hired Derrick Penick, a former merchandiser for Kroger, as senior VP of fresh merchandising and distribution. He replaces Cathy Green, who is now senior VP of retail operations.
Penick was most recently VP of merchandising at Kroger’s King Soopers division in Denver. Before that position, he had several other posts with Kroger including group VP of perishables, VP of merchandising, meat director and store manager.