As the Merger Churns

On Monday Federated Department Stores announced that it would close six additional "duplicate" stores in five states, including two in Southern California, as it continues to integrate the operations of former competitor May Department Stores. The merger will result in the closure of 82 stores nationwide, 26 of which are located in the greater Los Angeles and San Diego areas. May's regional offices in North Hollywood will also close, resulting in the loss of over 1,000 jobs.

The divesture list has been expanded to include one of the two existing Macy's stores at The Oaks in Thousand Oaks and one of the two existing Robinsons-May stores at Westfield North County in Escondido. It's interesting to consider that each of these malls will be losing not one but two department store anchors as a result of the merger. The retailing landscapein Southern California will be irrevocably changed.

This week's announcement also indicated that its first round of "going out of business" sales would begin on January 29, 2006 at 32 stores across the nation, including these in the greater Los Angeles and San Diego markets:

Robinsons-May

Fashion Valley (San Diego) *

Los Cerritos Center (Cerritos)

Santa Monica Place (Santa Monica)

South Coast Plaza (Costa Mesa) *

Westfield Fox Hills (Culver City)

Westfield North County "north store" (Escondido)

Westfield North County "south store" (Escondido)

Westfield Plaza Camino Real (Carlsbad)

Westfield Santa Anita (Arcadia)

Westfield University Town Center (La Jolla)

Macy's West

Galleria at Tyler (Riverside) **

Inland Center (San Bernardino) **

Montclair Plaza (Montclair) **

* After closing, these stores will be converted into Bloomingdale's units.

** The "going out of business" sales will not occur at these Macy's stores, but at the Robinsons-May stores in the same mall. It appears that Federated intends to clear out the Robinsons-May stores at these malls, then briefly close them to re-stock them with merchandise and open them as Macy's units. The existing Macy's stores at these malls will close quietly.

For more information:

Macy's: Coming Soon to a Mall Near You

Remembering Robinsons-May

Big Changes in Store for Southern California's Malls

Pink Slips Galore