As Federated chairman/CEO James Zimmerman told the public, "We believe the best approach for us in the Northeast is to concentrate on our two strongest store brands. We think both our customers and shareholders will be better served." Translation: With sales one-fifth of Macy's and half of Bloomingdale's, and failing to find its niche in a mid-level market now dominated by newcomers like Kohl's and Target, Stern's was obsolete.

Many consider the shutdown to be the last phase of the merger, five years ago, of Macy's and Federated. A&S was a casualty right off the bat, it was a direct competitor of Macy's, and with the latter in the Federated fold most of the A&S stores became Macy's (some were converted to Stern's). Now, Zimmerman ties Stern's closure to "a unique opportunity to consolidate our presence in the market and leverage our Macy's and Bloomingdale's nameplates."

Federated officials wouldn't comment further on the record, but indicated the conversions and closures were determined on a case-by-case basis by location, demographics and existing tenant mix. Four of the closures are on Long Island; the one in New Jersey is at the 1.5 million-sf Monmouth Mall in Eatontown. According to insiders, Stern's (one of the A&S conversions five years ago) is closing for a couple of reasons. One is that the mall already has a highly-successful Macy's.

Second, the Stern's store has some negatives vis-à-vis Bloomingdale's. At 275,000 sf, it's outsized for Bloomie's suburban protoype. Also, it would have to go head-to-head with Lord & Taylor, and it would have to do so from the weakest of the mall's four anchor slots. It's the furthest from the most visible entry points and anchors the wing that consistently has the lightest shopper traffic.

James Stavely, manager of the Equity Properties-owned Monmouth Mall, wouldn't comment, but Federated is expected to sell the lease. Nordstrom and Sears have been mentioned, although the latter is considered unlikely because the mall already has a JC Penney. Boscov's, based in Reading, PA, has stores in South Jersey and is said to be ready to look at Monmouth Mall for its first incursion in the central part of the state.

How will Stern's move impact Manhattan retail? Click on:Manhattan Mall Loses About 30% of Tenants, Speculation Looms About Life After Stern's