Federated to Swap Bullock’s Phoenix Unit

In a move that will leave only one Bullock’s store in the Arizona market, Federated Department Stores said it has reached an agreement to swap its Bullock’s unit in Phoenix for a Dillards store in Oklahoma City.

That will leave Los Angeles-based Bullock’s, which operates a total of 23 units, with just one Arizona store, in Scottsdale. Cincinnati-based Federated has been cutting back its Bullock’s operation since 1983, when it sold five of six Northern California Bullock’s stores.

Under an agreement in principle, privately held Dillard Department Stores of Little Rock, Ark., will hire Bullock’s 125 full-time employees in Phoenix. Federated will take over the Dillards store at the Crossroads Shopping Center in Oklahoma City and convert it into a unit of its Dallas-based Sanger Harris chain. The changes are effective June 15.

Federated also said it will purchase a Dillards store at the Quail Springs Shopping Center in Oklahoma City and convert it to a Sanger Harris unit. No purchase price was given.

Bullock’s opened the Phoenix store in 1977. Jack W. McCarley, the company’s vice president for public affairs, said the store was profitable in the last couple of years, but “it took a long time to reach the black.” He added, “We think an exchange of property for a very upscale market in Oklahoma City . . . is going to be very good for us.”