Federated also reports that it will close the Stern's store at33rd St. in Manhattan next March as well. Both Stern's locationswere former Abraham & Strauss stores. The store at the NanuetMall totals 180,000 sf and serves as the third anchor of the SimonProperty-owned facility. Other anchors at the mall located on Route59 are Macy's, which is also owned by Federated Department Stores,and Sears.

"With the closing of the 33rd St. and Nanuet stores next year,we will complete our long-term objective of eliminating theunder-performing locations Stern's inherited in the Macy's/A&Smerger in 1995," James M. Zimmerman, Federated's chairman and chiefexecutive officer, says. "The remaining locations that convertedfrom A&S to Stern's, namely Monmouth in New Jersey, and SmithHaven and Massapequa on Long Island, are doing well and areprofitable--a status the two stores we are closing could not manageto achieve despite the best efforts of Stern's management."

James N. Andress, Stern's president, adds that although saleshave improved at the 33rd St. and Nanuet stores, the chain wasunable to offset what he termed "the high occupancy and operatingexpenses associated with these locations."