Federated plans to invest $130 mn in online business
26 Jan '06
2 min read
Federated Department Stores Inc has planned to invest approximately $130 million in capital over the next two years in infrastructure improvements and service enhancements to support continued growth of its direct-to-consumer businesses, including macys.com, bloomingdales.com, Bloomingdale's By Mail, macysweddingchannel.com and bloomingdalesweddingchannel.com.
Terry J Lundgren, Federated's Chairman, President and CEO, said, "Online sales represent the fastest-growing part of our business and an outstanding opportunity for continued progress as we serve millions of new customers nationwide through our acquisition of May Company."
"Our customers have told us they appreciate the convenience of shopping online as well as in our stores. This cross-channel integration is a vital component of our ability to maximize the potential of the nationwide Macy's and Bloomingdale's brands.
"With the initial steps of our planned improvements scheduled to be in place by spring 2007, we expect our direct-to-consumer sales to grow to more than $750 million by 2008 from about $450 million in 2005," he said. These investments are part of the company's capital plan for spending $1.6 billion in 2006 and between $1.1 billion and $1.2 billion in 2007.
Investments include:
1. Upgrading and enhancing content and order management software systems that support Internet-based selling functions. These systems will help handle increased traffic and order capacity, as well as improve service levels, enhance efficiency, facilitate additional personalization of gift packages, and provide customers with more detailed information on order status and delivery schedules.
marketing@alchempro.com
