RETAIL : Federated to Eliminate Chain

Federated Department Stores Inc. said Tuesday that it will eliminate its Abraham & Straus store group by the end of May and make those branches part of its Macy’s, Stern’s or Bloomingdale’s divisions.

Federated said it is still trying to determine how many employees will be affected by the changes. Some may remain in the stores after the outlets are renamed, some may be transferred to other locations and some will be laid off and receive severance and benefits packages, the retailer said.

The A&S; store group operates mainly in the New York-New Jersey market.

Effective April 30, eight department stores and a Long Island, N.Y., furniture center will become Macy’s; five stores will take on the Stern’s name, and the A&S; store at Roosevelt Field in Garden City, N.Y., will be converted to a Bloomingdale’s.

Federated merged last month with New York-based R.H. Macy & Co. Inc. As part of the merger, the A&S; group was consolidated into the Macy’s East division.

Renaming the A&S; stores will significantly expand the Macy’s and Stern’s groups. As of April 30, the Macy’s East division will operate 87 department stores--68 Macy’s and 19 Jordan Marshes. It now has 78 stores in the Northeast. Stern’s, in New York and New Jersey, will go from 22 stores to 27.

Jordan Marsh will continue to operate in New England under that name and is not affected by the A&S; changes.

Federated is eliminating the A&S; name to save money and concentrate on merchandising for Macy’s, Stern’s and Bloomingdale’s, said Allen Questrom, Federated chairman and chief executive.

Federated closed up 25 cents at $181.50 on the New York Stock Exchange.