Federated to bring more values to home
February 25, 2004-- Home Textiles Today,
CINCINNATI — Federated Department Stores will significantly step up its everyday low pricing program in the home department this year.
The EDLP effort — dubbed best values — was launched last year as part of a broader program to reduce couponing and implement "pricing clarity" across the store.
Best values are expected to grow to roughly 10 percent of the total store mix long-term, although such merchandise currently represents a little over one percent today, chief financial officer Karen Hoguet said during the company's fourth quarter conference call Tuesday.
"I can't really talk yet about what's going to happen with the home store (in terms of best values) until the new team is in place and puts their plans together," Hoguet added.
Textiles and housewares are expected to benefit most from Federated Department Stores new centralized home buying system, she said, although across the overall store there will be no significant reallocations of selling space.
"Textiles is one of our stronger businesses, but I think perhaps with the change we can even accelerate that part of it," she added.
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