May Department Stores Co. (St. Louis) has announced an extensive reorganization that will combine its Kaufmann's and Filene's divisions in the Northeast and its Robinsons-May and Meier & Frank divisions in the West and Northwest.
May anticipates that the plan, effective Aug. 3, 2002, will save approximately $60 million annually, approximately 50 percent of which will be realized in the second half of fiscal 2002.
“These two combinations are an important strategic initiative that will enable us to streamline our operations, better serve our customers, provide operating efficiencies and reduce costs,” said chairman and ceo Gene Kahn. “They will propel our goals of providing timely, fashion-right assortments with greater clarity of offering and a simpler, easier shopping experience.”
Following these combinations, May will operate 436 quality department stores under 11 nameplates through six divisions: Lord & Taylor (New York), 84 stores nationally; Filene's (Boston), 96 stores — including Kaufmann's — in the Northeast and Great Lakes region; Hecht's (Washington, D.C.), 78 stores — including Strawbridge's — in the mid-Atlantic and Southeast; Famous-Barr (St. Louis), 43 stores –including L.S. Ayres and The Jones Store — in the Midwest; Foley's (Houston), 64 stores in the Southwest; and Robinsons-May (Los Angeles), 71 stores –including Meier & Frank — in the West and Northwest.
All Kaufmann's and Meier & Frank stores will continue to operate under their current nameplates.
The Lord & Taylor division continues to report to Kahn; the other five divisions will report to vice chairman William McNamara.
Filene's headquarters will remain in Boston. Thomas Kingsbury will continue as president and ceo and J. Kent McHose will continue as chairman.
Robinsons-May's headquarters will remain in Los Angeles. Craig Israel will continue as president and ceo and Robert Soroka will continue as chairman.
Andrew Pickman, currently president and ceo of Kaufmann's, was named president and ceo of the Foley's division, replacing Thomas Hogan, who retired. Pickman joined Filene's in 1975 as an assistant buyer, and held various merchandising positions before being promoted to senior vp and gmm at Filene's in 1992. He was named senior vp and gmm at May Merchandising in 1997 and assumed his current position at Kaufmann's in 2001.
In addition to its 436 department stores, May Co. currently operates 156 David's Bridal stores, 240 After Hours Formalwear stores and 10 Priscilla of Boston stores.