FEDERATED PLANNING TO SELL OFF 20 STORES ROBINSONS-MAY, MACY'S SITES TO GO.

Byline: Gregory J. Wilcox Staff Writer

In a move that shakes up the retail landscape, 20 Robinsons-May and Macy's department stores across Southern California will be sold, including three in the San Fernando Valley area, as part of the sale of May Department Stores Co., officials said Thursday.

The stores are among 68 that Cincinnati-based Federated Department Stores Inc. plans to sell across the country as it digests May. Federated will also convert 330 May stores to its Macy's nameplate next year.

Stores on the sell list include ones in Thousand Oaks, Northridge and Glendale.

In Woodland Hills, there are two Macy's facilities at Westfield Shoppingtown Promenade, and only a block away stands a Robinsons-May at Westfield Shoppingtown Topanga. None is on the sale list.

Federated said a small number of stores are being considered for conversion to the Bloomingdale's nameplate and that Topanga is a likely location. That mall is in the midst of a $300 million makeover that will include a Neiman Marcus and a new building for Nordstrom, both of which cater to the same upscale customers as Bloomingdale's.

Federated spokeswoman Carol Sanger said that kind of rebranding makes sense. ``It certainly would be one of the locations we would be looking at.''

Westfield spokeswoman Katy Dickey did not discourage speculation, saying the rebranding and store sell-off is an opportunity for growth. ``We've begun discussion with Federated about the acquisition of duplicative stores. If successful, the purchase ... creates opportunities to further redevelop and improve our portfolio.''

Westfield owns nine malls in Southern California at which store sales are planned.

Other mall owners will take more time to assess the development.

``I'm still trying to get my hands around how this affects everyone,'' David Keating, spokesman for General Growth Properties, which owns the Northridge Fashion Center and Glendale Galleria, said of the Federated announcement.

There are basically two ways to fill the space - bring in another major retailer or turn the building into an area of specialty shops and restaurants, he said.

It's too soon to say what changes might take place at those facilities.

Jack Kyser, chief economist at the Los Angeles County Economic Development Corp., offered a list of retailers that might be in a buying mood.

Federated could find interest from Wal-Mart, Target, Nordstrom, J.C. Penney and Dillard's, which has a store in the Antelope Valley.

``There is going to be some corporate chess going on here,'' he said. ``Glendale would be a real barnburner and Northridge is a good store.''

At Northridge Fashion Center, which is losing a Robinsons-May, shoppers did not welcome the news.

Theresa Vajnar, 35, of Northridge said although she enjoys shopping at both department stores, there are certain items she can only get at Macy's.

``I like some of the women's clothes at Macy's, like INC,'' Vajnar said. She's going to miss having both options.

Ronny Wallked, 38, of Woodland Hills expressed disappointment. ``I shop a lot at Robinsons-May. I like the sales. I see that at Macy's they are a little more expensive. So why would I want to go there?''

Macy's is gaining clout, though.

The purchase of May and rebranding of that company's stores will give Federated 730 Macy's outlets across the country.

``We have chosen to proactively announce our decisions as they are made so that our intentions are clear,'' Terry J. Lundgren, Federated's chairman, president and chief executive officer, said in a statement announcing the divestiture and rebranding. Few layoffs are planned, at least immediately.

The company decided to expand the Macy's brand based on customer research in communities with May Co. stores.

Sales will begin next year and the rebranding will start in the fall, the company said. The purchase is expected to close in the third quarter.

Correspondent Rick Coca contributed to this report.

Gregory J. Wilcox, [phone]

greg.wilcox(at)dailynews.com

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