fashion-features
fashion-features

Lundgren Takes Helm As Federated Returns To Black in 4th Qtr.

It’s back to some of the fundamentals for Federated Department Stores, which has a new ceo in Terry J. Lundgren, and a new corporate structure.

fashion-features/news
Asked how successful the "store of the future" program has been, Lundgren suggested it was a work in progress. "We are not done. We are going to keep on this subject and keep listening to our customers," he said.

The first retrofitted store, a Lazarus in Easton, Ohio near Columbus, "clearly outperformed the large majority of Federated stores," Lundgren said. "Customer feedback has been very favorable. We are strong believers in the program. We rolled out 44 units in the fourth quarter and we’re ready to keep going. I am looking at markets and am going to make sure the next step involves very specific markets, like Rich’s and Macy’s in Atlanta," two nameplates currently being merged.

By covering an entire market, he noted, it becomes economically feasible to advertise "store of the future" features. They have 12 new technologies, shops and amenities, such as fitting room complexes with a lobby, a seating area for significant others, CNN monitors and computer terminal jacks to get online. Stores are also equipped with price lookup, so customers and sales associates can scan a bar code and get the latest price on items; larger signs that are reminiscent of discounters, and new shop concepts. Children’s shoes have returned to the Federated stores, and juniors shops are enlivened with video games, snacks, a photo booth, and a cyber cafe. With these strategies, Federated is seeking to attract younger customers, where department stores have lost major market share.

Lundgren said that, beyond Atlanta, Federated has not committed the program to any other metro area yet. Also, Bloomingdale’s is not part of the program. "We want Bloomingdale’s to have a totally different experience. The mission for Bloomingdale’s is to be a step up beyond the Macy’s focus and core target audience. Bloomingdale’s is continuing to trade up its business, to be more aspirational and creative, and recently, Bloomingdale’s has opened some exciting stores," Lundgren added, citing the Bloomingdale’s Home unit in downtown Chicago. It’s housed in the restored and landmarked Medina Temple.

With Macy’s, too, "There is an opportunity to trade up a bit. But we want to make sure we offer great value for our customers while not chasing much more moderate customers," such as those served by Kohl’s or Wal-Mart. "We’re going after the fashion-oriented consumer, interested in unique, quality product at good value."
Page:  « Previous Next »
VIEW ARTICLE IN ONE PAGE
load comments

ADD A COMMENT

Sign in using your Facebook or Twitter account, or simply type your comment below as a guest by entering your email and name. Your email address will not be shared. Please note that WWD reserves the right to remove profane, distasteful or otherwise inappropriate language.
News from WWD
Newsletters

Sign upSign up for WWD and FN newsletters to receive daily headlines, breaking news alerts and weekly industry wrap-ups.

LatestPublications
getIsArchiveOnly= hasAccess=false hasArchiveAccess=false