"Macy's emerged as a premier national retailer in March 2005, when we changed Federated's regional department store nameplates," said Terry J. Lundgren, Federated's chairman, president and chief executive officer. "We will continue that process in 2006 by converting many of May Company's regional store nameplates to Macy's. With these additions, Macy's will operate about 730 stores, representing virtually every major U.S. market. Customers will benefit from having the best of both worlds - the national reach of the Macy's brand, along with community commitment and local focus for which May Company and Federated are well known.
"We have chosen to proactively announce our decisions as they are made so that our intentions are clear," Lundgren added. "This decision to expand the Macy's brand was based on careful study and new research on customer preferences in May Company communities.
"Customers have told us they want the fashion and affordable luxury they find in Macy's stores. We have strengthened the Macy's brand with distinctive assortments, simplified pricing, an improved shopping experience and enhanced marketing. With this expanded geographic coverage, we now will be positioned to nationally advertise the Macy's brand," he said. "And with additional Macy's stores, more customers than ever will benefit from our Macy's Star Rewards customer loyalty program, gift cards that can be used across the country and a nationwide wedding registry.
"We respect that May Company's regional store names are deeply rooted in their communities, we appreciate the heritage and traditions associated with those names, and we expect to continue to play an important role in the communities where our customers live and work," Lundgren said. "At the same time, we also have learned from our own experience converting Federated's regional nameplates. Our customers tell us through research and from their behavior that what's inside a store - the merchandise, the service, the people, the shopping environment - is what matters most. And this is where Macy's excels."
The following May Company stores will be renamed Macy's sometime in fall 2006:
-- Famous-Barr locations in Illinois, Indiana, Kentucky and Missouri;
-- Filene's locations in Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont;
-- Foley's locations in Colorado, Louisiana, New Mexico, Oklahoma and Texas;
-- Hecht's locations in Maryland, North Carolina, Pennsylvania, Tennessee, Virginia and the District of Columbia;
-- The Jones Store locations in Kansas and Missouri;
-- Kaufmann's locations in New York, Ohio, Pennsylvania and West Virginia;
-- L.S. Ayres locations in Indiana;
-- Meier & Frank locations in Oregon, Utah and Washington;
-- Robinsons-May locations in Arizona, California and Nevada; and
-- Strawbridge's locations in Delaware, New Jersey and Pennsylvania.
A decision regarding the Marshall Field's name has not yet been made, pending further study. The Lord & Taylor name will not be converted to the Macy's brand.
In conjunction with the conversion process, Federated said it has identified 68 duplicate locations in 66 malls which will be divested starting in 2006. Included are 41 current May Company stores operating in 12 states under various nameplates, as well as 27 Federated stores operating in 14 states as Macy's. Federated said the number of divestitures is consistent with its original expectations, and that it will continue to study the May Company store portfolio in light of the merger. Some plans may change as conversion dates approach. In addition to the locations being divested, a small number of stores are being studied for potential conversion to the Bloomingdale's nameplate.
Locations identified for divestiture accounted for approximately $2 billion of 2004 sales. (NOTE: A list of affected store locations is attached to this news release.)
Once duplicate stores are divested, the remaining Macy's in that location will include employees from both locations. The company expects to employ all management personnel in good standing from both stores and to offer positions to the vast majority of associates.
"Federated has earned a reputation for attracting and retaining the best people in retailing," Lundgren said. "By fusing the talents of Macy's and May Company associates, we believe our stores will maintain a high level of professionalism, performance and selling service for the customer.
"It is important for associates of both companies to understand that we will be as sensitive and caring as possible throughout this process. We will honor the pledge made previously to May Company associates that there will be no workforce reductions or job eliminations as a result of the merger prior to March 1, 2006," he said.
The current plan is to operate all May Company stores under their existing nameplates at least through the 2005 holiday shopping season. Divestiture of duplicate May Company and Macy's locations will begin in 2006. They will be offered for sale to landlords, developers and interested third parties. Federated said it intends to comply with all existing lease and operating agreements, and the divestiture of certain locations will be subject to the satisfactory completion of negotiations with various third parties.
Shareholders of Federated and May Company have approved the merger, which is expected to close in the third quarter of 2005, pending completion of regulatory review.
This document contains statements about expected future events that are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, Federated and May's expectations regarding the anticipated shareowners meetings, the closing and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of Federated and May's management and are subject to significant risks and uncertainties. Actual results could differ materially from those expressed in the forward-looking statements contained in this document because of a variety of factors, including a significant change in the timing of, or the imposition of any government conditions or legal impediments to, the closing of the proposed transaction. Additional factors that may affect the future results of Federated and May are set forth in their respective filings with the SEC, which are available at www.fds.com and www.mayco.com, respectively.
Federated, with corporate offices in Cincinnati and New York, is one of the nation's premier retailers, with annual sales of more than $15.6 billion. Federated operates more than 450 department stores in 34 states, Guam and Puerto Rico under the names of Macy's and Bloomingdale's. The company also operates macys.com and Bloomingdale's By Mail.
(NOTE: Additional information on Federated, including past news releases, is available at www.fds.com/pressroom.)
FEDERATED/MAY COMPANY POST-MERGER STORE DIVESTITURE LIST Current May Company stores Sq. Ft. Date Nameplate/Location City/State (000) Employees Opened ------------------ ---------- ------ --------- ------ Famous-Barr/ Eastland Mall Evansville, IN 180 138 1996 Filene's/Burlington Mall Burlington, MA 182 262 1968 Filene's/Cape Cod Home store Hyannis, MA 40 23 1970 Filene's/Crossgates Mall Albany, NY 201 170 1994 Filene's/Crystal Mall Waterford, CT 90 153 1984 Filene's/Danbury Fair Mall Danbury, CT 172 269 1986 Filene's/Maine Mall - Main/Men's Portland, ME 157 226 1983 Filene's/Trumbull Trumbull, CT 200 222 1978 Hecht's/Wheaton Wheaton, MD 179 235 1987 Kaufmann's/Monroeville Mall Monroeville, PA 262 274 1987 Kaufmann's/Polaris Fashion Place Columbus, OH 200 174 2001 Kaufmann's/Richland Mansfield, OH 132 99 1969 Kaufmann's/South Hills Village Pittsburgh, PA 258 284 1987 Kaufmann's/Mall at Tuttle Crossing Columbus, OH 227 188 2003 L.S. Ayres/Castleton Square Indianapolis, IN 207 284 1990 Strawbridge's/Cherry Hill Mall Cherry Hill, NJ 258 267 1961 Strawbridge's/Christiana Mall Newark, DE 214 191 1978 Strawbridge's/Deptford Mall Deptford, NJ 173 160 1995 Strawbridge's/King of King of Prussia, Prussia Plaza PA 215 219 1995 Strawbridge's/Lehigh Valley Mall Whitehall, PA 173 112 1995 Strawbridge's/Montgomery Mall North Wales, PA 184 418 1995 Strawbridge's/Oxford Valley Mall Langhorne, PA 178 137 1995 Strawbridge's/Springfield Mall Springfield, PA 186 252 1997 Strawbridge's/Willow Grove Park Willow Grove, PA 235 213 1988 Robinsons-May/Del Amo Fashion Center Torrance, CA 180 298 1981 Robinsons-May/Fiesta Mall Mesa, AZ 159 135 1979 Robinsons-May/Fox Hills Culver City, CA 150 159 1975 Robinsons-May/Glendale Galleria Glendale, CA 179 283 1993 Robinsons-May/Los Cerritos Center Cerritos, CA 153 224 1971 Robinsons-May/Main Place (north) Santa Ana, CA 149 178 1991 Robinsons-May/North County Fair (north) Escondido, CA 112 86 1986 Robinsons-May/Northridge Fashion Center Northridge, CA 191 218 1995 Robinsons-May/The Oaks S.C. (south) Thousand Oaks, CA 150 86 1978 Robinsons-May/Pacific San Buenaventura, View Mall CA 205 158 1999 Robinsons-May/Plaza Camino Real Carlsbad, CA 150 144 1969 Robinsons-May/Santa Anita Arcadia, CA 181 224 1976 Robinsons-May/Santa Monica Place Santa Monica, CA 137 148 1981 Robinsons-May/University Town Ctr La Jolla, CA 147 176 1978 Robinsons-May/Valley Plaza S.C. Bakersfield, CA 130 156 1988 Robinsons-May/Victoria Rancho Cucamonga, Gardens CA 180 221 2004 Current Macy's stores Sq. Ft. Date Division/Location City/State (000) Employees Opened ------------------ ---------- ------ --------- ------ Macy's Central/Eastland Mall Columbus, OH 245 184 1967 Macy's Central/Greenwood Greenwood, IN 160 168 1980 Macy's Central/Ross Park Pittsburgh, PA 201 220 1986 Macy's East/Fair Oaks Fairfax, VA 220 273 2000 Macy's East/Marley Station Glen Burnie, MD 267 195 1987 Macy's East/Natick Mall Framingham, MA 211 275 1994 Macy's East/Northshore Mall Peabody, MA 301 325 1958 Macy's East/Owings Mills Owings Mills, MD 267 228 1986 Macy's East/Pheasant Lane Nashua, NH 128 141 1986 Macy's East/Southshore Plaza Braintree, MA 303 261 1967 Macy's East/Warwick Mall Warwick, RI 309 289 1970 Macy's East/Westgate Mall Brockton, MA 73 118 1977 Macy's East/White Marsh Perry Hall, MD 198 182 1981 Macy's Northwest/Valley River Mall Eugene, OR 123 127 1990 Macy's West/Coronado Center Albuquerque, NM 153 157 1976 Macy's West/Galleria at Tyler Riverside, CA 156 180 1970 Macy's West/Houston Galleria Houston, TX 256 322 1986 Macy's West/Inland Center San Bernardino, CA 145 193 1966 Macy's West/Lakewood Center Los Angeles, CA 208 254 2000 Macy's West/Mission Viejo Mission Viejo, CA 197 243 1980 Macy's West/Montclair Plaza Montclair, CA 147 206 1968 Macy's West/North Star Mall San Antonio, TX 178 185 1997 Macy's West/Palm Desert - apparel/home Palm Desert, CA 195 303 1983 Macy's West/Paradise Valley Phoenix, AZ 184 199 1991 Macy's West/Stonebriar Mall Dallas, TX 210 160 2000 Macy's West/West Covina West Covina, CA 150 225 1975