Federated Tightens the Web

Federated Department Stores (Cincinnati) has decided to tighten its Internet focus by reducing the scope of its macys.com web site and nearly eliminating the e-commerce offering on the bloomingdales.com web site.

Federated said that effective Feb. 1, 2002, bloomingdales.com will transition from an online e-commerce site selling merchandise to a marketing site that supports the Bloomingdale's store brand. Online services of the bloomingdales.com bridal registry will be maintained in partnership with WeddingChannel.com and the site will continue to offer electronic order forms for purchasing from the Bloomingdale's By Mail catalog.

macys.com will scale back the scope of its online merchandise offerings, eliminating such ready-to-wear categories as petites, larger sizes, career and swimwear. It will, however, expand its selections in what it has found to be successful online categories such as bridal, home, gifts and jewelry.

The Macy's catalog operation will cease operations entirely.

“Over the past three years, Federated has been aggressively pursuing strategies to capitalize on its two strong retail brands,” said chairman and ceo James Zimmerman. “We remain committed to pursuing our Internet strategies.”

“In the current economic climate, it is important that we use our available resources in the most productive way possible,” said Jeffrey Sherman, chairman of Federated Direct, the company's New York-based direct-to-customer division. “We are looking forward to building on the successes of macys.com while more aggressively pursuing Internet marketing opportunities for Bloomingdale's.”

Sherman said the decision will reduce the capital expenditures and expected loss from these businesses, keeping them on track to break even in 2003.

Approximately 100 positions – including technical support, programming personnel and merchandising and administrative staff — will be eliminated as part of the reorganization.