Two Macy's to Go

Federated Department Stores (Cincinnati) has announced that it will close two Macy's locations this spring. The stores in question are in Riverchase Galleria, Birmingham, Ala.; and in Augusta Mall, Augusta, Ga.

The department store retailer says it will make the space available for third parties, though it might use the space to expand the presence of its Atlanta-based Rich's/Lazarus/Goldsmith's division. There are currently Rich's stores in both centers. It said it will make a final determination by mid-year.

As a result of these closings, and the three Lazarus store closings announced two weeks ago (in Indianapolis; Lafayette, Ind.; and Zanesville, Ohio) Federated expects to incur $35-$40 million of one-time restructuring charges (of which less than $5 million is cash).

Federated's Macy's East division, based in New York, operates 114 stores in 15 Eastern states and Puerto Rico. It produced $4.8 billion in sales in 2000.