So Long Federated, Hello Macy's Group?
Iconic Federated Department Stores Inc. may soon be a name of the past. Yesterday, the company announced that its board of directors will ask shareholders to change the company's name to Macy's Group Inc. A vote to amend the corporation's charter to accommodate the new name will take place at Federated's annual meeting on May 18, 2007. If approved, the new name would be effective on June 1, 2007.
So why the name change? Terry J. Lundgren, chairman, president and CEO of Federated says "Macy's Group" is a name that more accurately reflects the transformation of its business in recent years. "Today, we are a brand-driven company focused on Macy's and Bloomingdale's, not a federation of department stores. By aligning our corporate name with our largest brand, we will increase the visibility of the company with customers, leverage the world-famous Macy's brand name, and get more credit for our accomplishments in the marketplace," Lundgren said.
Federated Department Stores Inc. was originally chosen as the company's name in 1929 by a group of family-owned department stores that joined together under a corporate holding company umbrella. Federated became an operating company in 1945, and its portfolio over the years has included various regional department store names. We all know that in 2005 and 2006, all regional nameplates were converted to Macy's, and today the company operates only Macy's and Bloomingdale's stores. While Federated does have considerably more Macy's stores than Bloomingdale's locations, the Bloomingdale's brand is still an icon of its own. So will changing Federated's name to Macy's Group seem like the company is casting Bloomingdale's aside? I'm not sure yet, but I do hope this isn't foreshadowing something to come: Bloomingdale's stores eventually all becoming Macy's stores one day. As of yet, this doesn't appear to be the case at all. But then again, in the world of department stores, you never know. Do you think the name change would be a smart move? If not, what are some other possibilities? Tell the Retail Design Diva your thoughts!
--Jessie Bove

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