Federated Department Stores Inc. will stop selling on its bloomingdales.com Web site, and reduce the offerings on its macys.com site. Roughly 100 jobs will be cut.
The Macy’s catalog operation, which supported the Macys Web site, will crease operations immediately.
These moves will reduce the expected losses from the online businesses and enable them to break even in 2003, the company said. However, they will cost the firm up to $60 million, including $40 million for the non-cash writedown of fixed assets and software capitalization.
The bloomingdales.com site will become a branding site. The bloomingdales.com bridal registry will be maintained in partnership with WeddingChannel.com.
Meanwhile, the macys.com site will eliminate several categories, including petities, larger sizes, career and swimwear. However, it will add bridal, home, gift and jewlery offerings.
“In the current economic climate, it is important that we use our available resources in the most productive way possible,” said Jeffrey Sherman, chairman of Federated Direct, the firm’s direct-to-consumer division, in a statement.
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