Brand Change: Federated Wants to Be Known As Macy's


What's in a name? Federated, the Cincinnati-based department store chain, is about to find out.

Federated wants to change the name of the company to Macy’s Group at the annual meeting in May. If approved by shareholders, the new name will go into effect in early June.

Federated’s CEO Terry Lundgren discussed his company’s name change on Squawk Box this morning. “We’re no longer a federation of regional stores. Macy’s is 90% of our business”, said Lungren.

But, is making itself into Macy’s a smart business move?

Julius Roberge, Managing Director of Verbal Identity at Interbrand, who appeared on CNBC’s Morning Call, thinks the proposed name change is a good corporate move for Federated.

However, others such as Jonathan Asher, President of Dragon Rough U.S.A., disagree. Asher told Morning Call that he believes Federated needs to be aware of the regional issues that come along with a name change.

Through 2005 and 2006, Federated changed the name of its regional department stores to Macy’s. They maintain corporate offices in Cincinnati and in New York City. Federated Department Stores was originally chosen as the company’s name in 1929.