Headlines

Fingerhut Takes A Cut

Federated downsizes to save overhead costs

Published

24 years ago

October 13, 2000

admin1

Federated Department Stores Inc. (Cincinnati) announced it would substantially cut back its Fingerhut catalog operation. Plans include eliminating about 550 jobs, accounting for approximately 24 percent of the catalog's total staff.

The goal of the restructuring plan is to increase the core catalog's profitability. The company experienced serious problems in the past due to a too-loose credit policy. Now it will extend credit more selectively, according to Federated vice chairman Ronald W. Tysoe. Since doing so will affect a decrease in sales, cutting back expenses is necessary, and downsizing is expected to save about $40 million in annual overhead next year.

MasterClass: ‘Re-Sparkling’ Retail: Using Store Design to Build Trust, Faith and Brand Loyalty

HOW CAN WE EMPOWER and inspire senior leaders to see design as an investment for future retail growth? This session, led by retail design expert Ian Johnston from Quinine Design, explores how physical stores remain unmatched in the ability to build trust, faith, and loyalty with your customers, ultimately driving shareholder value.

Presented by:
Ian Johnston
Founder and Creative Director, Quinine Design