It's Shoe Business for Federated and Footstar

Federated Department Stores (Cincinnati) has announced that Meldisco, a division of Footstar Inc. (Mahwah, N.J.) that currently operates nearly 7000 licensed footwear departments in stores across the country, will begin operating Federated's licensed children's shoe departments effective July 1, 2002.

The 46 children's shoe departments, currently operated by Stride Rite, will be redesigned with open-sell fixtures and will introduce Federated's new Greendog private brand of children's shoes. Federated and Meldisco say they anticipate opening as many as 175 children's shoe departments over the next three years.

“We are excited about the potential of the new children's shoe departments,” said Terry Lundgren, president of Federated Department Stores. “Our customers will be able to easily access merchandise in an expanded, user-friendly environment and we will offer shoes that are specifically designed to complement our children's apparel in style, color and value. Both will enable us to significantly grow this important part of our business.”

Federated and Meldisco will begin redesigning selling space in the children's shoe departments'in May, adding 100 percent open-sell merchandising fixtures. They say that sales associates will continue to be available assisting customers and measuring children's feet.

The new departments will feature Federated's own private brand of children's shoes under the Greendog brand, in a range of styles from athletic to special occasion. Other brands offered are expected to include Tommy Hilfiger, Kenneth Cole, Stevies, Nike, Adidas, Elefanten, Rachel, Stride Rite, Tootsies, Keds and Sam & Libby. Shoes will be specifically designed and selected to complement the stores'children's apparel offerings.

Current children's shoe departments are located in Federate divisions Macy's, Goldsmith's, Lazarus and Rich's stores. Beginning in July, children's shoes will be added to most new department stores and remodels across the company, with additional store rollouts planned for the coming years.

Meldisco will source and supply nationally recognized brands as well as high-quality leather footwear through Footstar's Global Sourcing Organization

The Footstar organization includes two athletic divisions: Footaction, which operates about 520 mostly mall-based stores, and Just For Feet's 90-plus stores in the southern half of the U.S.; and the Meldisco division, which accounts for about 60 percent of total corporate sales through leased footwear departments in more than 6000 U.S. stores, including about 2100 Kmart stores. In addition to private brands, Meldisco offers shoes under the Everlast, Route 66 and Thom McAn labels.