CINCINNATI, Feb. 27 (UPI) -- Federated Department Stores Inc. said Tuesday it planned to change its name to Macy's Group Inc. as it transforms the Macy's chain into a national U.S. brand.
The retailer also said it expected profits this year to miss Wall Street's forecasts.
The company will ask shareholders to approve the new name at its annual meeting May 18, Federated said. If approved, Federated would take on the new name June 1.
Macy's Group "more accurately reflects the transformation of our business in recent years," Chairman and Chief Executive Officer Terry Lundgren said. "Today, we are a brand-driven company focused on Macy's and Bloomingdale's, not a federation of department stores."
By aligning the company's name with its largest brand, Federated "will increase the visibility of the company with customers, leverage the world-famous Macy's brand name and get more credit for our accomplishments in the marketplace," Lundgren said.
He added Macy's Group was the appropriate name, rather than Bloomingdale's, because 90 percent of Federated's sales come from Macy's.
"That said, Bloomingdale's is -- and will remain -- a very important part of the company," Lundgren said.
