Federated increases direct channel investment to $230M

Share this content:

Federated Department Stores Inc. will invest an additional $100 million in its direct business this year on top of the $130 million it poured into the channel over the past year. The retailer expects sales to surpass $1 billion by 2008.

With direct sales growing from about $620 million in 2006, Federated, Cincinnati, is investing in its direct channel so that it can continue to scale up the volume of business while enhancing customer service, delivery efficiency and online site functionality.

"Our online sales continue to grow at a rapid pace as the national expansion of Macy's and Bloomingdale's attracts new customers to our stores, Web sites and catalogs," said Terry J. Lundgren, chairman and president/CEO of Federated Department Stores Inc., in a statement. Several markets that Macy's has recently entered are experiencing exceptional growth in online sales, including Illinois, Michigan, Minnesota, Missouri, Oklahoma, Texas and Utah, he said.

New investments will include the building of a 600,000-square-foot distribution center in Goodyear, AZ, which will serve primarily as the West Coast shipping point for Macys.com. Construction on the facility will begin in spring 2007 and is scheduled to completed by spring 2008.

This year's investments will also include the expansion of the direct warehouse management system, improvements to the order management system and enhancements to the Web site to support projected increases in customer traffic.

The $130 million that Federated invested in its direct business last year included a new 600,000-square-foot distribution center that is scheduled to open later this month near Portland, TN. This facility will serve primarily as the shipping point for Macys.com to Midwestern, southern and central states.


Next Article in Multichannel Marketing

Sign up to our newsletters

Company of the Week

We recently were named B2B Magazine's Direct Marketing Agency of the Year, and with good reason: We make real, measureable, positive change happen for our clients. A full-service agency founded in 1974, Bader Rutter expertly helps you get the right message to the right audience at the right time through the right channels. As we engage our clients' audiences along their journey, direct marketing (email, direct mail, phone, SMS) and behavioral marketing (SEM, retargeting, contextual) channels deliver information relevant to the needs of each stage. We are experts at implementing and leveraging marketing technologies such as CRM and marketing automation in order to synchronize sales and marketing communications. Our team of architects and activators plan, execute, measure and adjust in real time to ensure the strategy is working as needed and change things if it's not.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above