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Article: Federated's profit-maker. (Federated Department Stores Inc.'s Rich's Inc.) (Survival of the Fittest) (Company Profile)
- Article from:
- WWD
- Article date:
- November 4, 1992
- Author:
CopyrightCOPYRIGHT 1992 Conde Nast Publications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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ATLANTA - Tough times? Not for Rich's, the most profitable division of Federated Department Stores Inc.
The 26-unit division led Federated in profits as a percentage of sales and in dollars in 1991 and 1990 despite the recession, consumer price resistance, and some strong new competition. Sources said 1990 profits were $61.5 million, and the brisk pace continued last year.
How did the $820 million retailer do it?
"We've benefited from a Southeast economy that's been better than other areas," said Carl Tooker, chairman and chief executive officer.
There's more to it than that, however. Aside from the usual tight rein on costs, Rich's ...