A New Start for Lord & Taylor
Lord & Taylor won’t have Federated Department Stores around to ignore it anymore.
The upscale department store chain is now the property of NRDC Equity Partners and National Realty & Development Corp. following the Federal Trade Commission’s approval of the deal.
In the past, NRDC Equity Partners (a partnership of private equity firm Apollo Real Estate Advisors) and National Realty & Development have said they plan to continue operating Lord & Taylor as a retail venture. It has also expressed support for CEO Jane Elfers and the current management team in place at the chain.
In June, NRDC principal Richard Baker told Forbes, “Our plan is to operate the company, review every store, understand which should be left alone and which should be modified. The flagship will be analyzed like everything else — does it need to be that large? Maybe it only needs to be half that large.”
Mr. Baker has said he believes the consolidation that has taken place within the department store sector in recent years will help Lord & Taylor increase its customer base.
Discussion Questions: What will Lord & Taylor need to do to grow? Will it be freer to make the changes necessary for growth now that it is no longer
part of Federated?
In recent years, Lord & Taylor has sought to enhance its fashion image and attract a younger and more fashion conscious consumer with clothing lines
such as Lauren by Ralph Lauren and Ellen Tracy. The jury is still out on whether this strategy is working.
of Lord & Taylor stores gets US antitrust nod – Reuters
- Lord & Taylor’s New Master – Forbes.com