P.M. BRIEFING : May Department Stores Quits Discount Retailing Business

May Department Stores Co. said today it will leave the discount store business with the sale of its Caldor chain to managers for $500 million and a spinoff of its Venture chain, allowing it to focus on department and specialty stores.

The operator of 14 department store chains, including such stores as Hecht’s, Lord & Taylor, Famous Barr and Filene’s, is the largest publicly traded department store chain.

In another move, May said it will distribute to shareholders the stock of its Venture division in a tax-free spinoff, subject to a favorable Internal Revenue Service ruling. The top management of Venture will continue with the store chain after the spinoff, May said.

“The reason we are getting out of discount stores is so that we can concentrate on our higher-return and faster-growing businesses,” a spokesman for May said, citing specialty stores that sell shoes, and department stores.

The discount store business has been intensely competitive, especially with retailing giant Sears Roebuck & Co. adopting a discount store strategy over the last year.