Article: Department Store Consolidations Increase

N.Y. Times News Service

NEW YORK _ If Federated Department Stores succeeds in merging with R.H. Macy Co., it would become the largest department store company in America _ but it would probably not hold the top spot for long.

Just as the number of major warehouse club operators has shrunk to two from five, some predict that by the end of the decade, the country will be populated with only three big department store operators and a smattering of niche players.

The department store industry has been slowly consolidating for the last three decades, as small two- and three-store businesses merged or were purchased, leaving a handful of national and regional companies. Now, Federated's ...

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