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Kaufmann's -- the most prominent thread in the Pittsburgh area's retailing fabric for more than a century -- is going the way of Joseph Horne Co. and Gimbels.

Federated Department Stores Inc. on Thursday made official what has been expected since its deal to buy Kaufmann's parent, May Department Stores Co., was announced in February: It will convert all of May's regional department store chains to its Macy's brand to build a nationwide chain under one name.

That means the landmark Downtown Kaufmann's on Smithfield Street, a 13-story, 775,000-square-foot building, will become a Macy's -- clock and all. That location dates to 1885.

Also as expected, Cincinnati-based Federated said it will close 68 stores in 66 malls where it and St. Louis-based May both have stores, including Ross Park, Monroeville and South Hills Village malls in the Pittsburgh region.

The Kaufmann's stores at the Monroeville and South Hills Village malls will close after the holiday season. The Macy's store at each mall will remain open.

The Macy's store at Ross Park will close, and the Kaufmann's there will take the Macy's name.

Federated said it will complete the conversion of about 330 of May's regional stores that operate as Kaufmann's, Strawbridge's in Philadelphia, Filene's, Foley's and under other names to Macy's by next fall. The change affects all 56 Kaufmann's in Pennsylvania, Ohio, West Virginia and western New York.

The resulting Macy's chain will have about 730 stores across the nation. Wal-Mart, the nation's biggest retailer, has more than 3,300 stores in the United States and Puerto Rico.

"Customers have told us they want the fashion and affordable luxury they find in Macy's stores," Federated CEO Terry Lundgren said in a statement. "We have strengthened the Macy's brand with distinctive assortments, simplified pricing, an improved shopping experience and enhanced marketing. With this expanded geographic coverage, we now will be positioned to nationally advertise the Macy's brand."

Lundgren said that Federated "respects that May Co.'s regional store names are deeply rooted in their communities," but added that customer research has shown that it's what is inside the stores that matters most.

"And this is where Macy's excels," he said.

Department stores once were the foundation of American retailing, selling everything from clothing to furniture to jewelry and electronics. But they have been squeezed in recent years by the rise of general merchandise discounters such as Wal-Mart and Target and by specialty "category killer" stores such as Best Buy in electronics and Bed, Bath & Beyond in home goods.

Macy's is emphasizing its own private label brands, such as I.N.C., Charter Club, Alfani, Tasso Elba and others, which now account for about 17 percent of total sales and differentiate it from its competition.

It also carries such national brands as Polo/Ralph Lauren, Kenneth Cole, DKNY, Liz Claiborne, Nine West and Tommy Hilfiger. Federated will attempt to use the new heft of Macy's to get better deals from suppliers, as well as to demand merchandise made exclusively for the chain, as Wal-Mart and Target do.

Many mall owners, far from fretting over department store departures, are eager to replace the underperforming anchors that often have older, less lucrative leases with new specialty retailers that pay higher rent and draw more shoppers.

Deborah Gibb, spokeswoman for CBL & Associates Properties Inc., the Chattanooga, Tenn.-based owner of the Monroeville Mall, said the closing of a Kaufmann's there is an "opportunity .... to elevate the building to a more productive use and increase the attractiveness of the retail mix."

CBL was able to quickly replace department store anchors at two malls in Madison, Wis., last year with multiple stores, including Findlay-based Dick's Sporting Goods and Steve & Barry's University Sportswear, Gibb said.

Indianapolis-based Simon Property Group, which owns Ross Park and South Hills Village in Bethel Park and Upper St. Clair, has confirmed that it is in discussions with high-end department store chain Nordstrom about putting a store at Ross Park.

Simon, at a major shopping center trade show in Las Vegas, displayed a site plan showing Nordstrom as a potential anchor for the Ross complex, the Pittsburgh Tribune-Review reported in May.

"We have already initiated conversations with a wide range of potential users that are interested in stores that might become available," Simon President Rick Sokolov said in a statement.

Federated spokeswoman Carol Sanger said store closings will happen as the company completes deals with mall owners or third parties to sell leases or property.

Federated said a "small number" of May stores are being examined for possible conversion to its smaller, more upscale Bloomingdale's chain. It declined comment on whether any local Kaufmann's are being considered.

May's Lord & Taylor chain will keep its name. A Downtown Lord & Taylor opened in the original Mellon Bank headquarters building in November 2000 as part of Mayor Tom Murphy's failed plan to rebuild the Fifth and Forbes retailing corridor. The heavily subsidized store closed last November after posting poor sales. Also heavily subsidized was Federated's Downtown Lazarus store, which opened in 1998 and closed in 2004. Federated still owns the building at Fifth Avenue and Wood Street.

Federated said it has yet to decide what to do with May's Marshall Field's chain.

Federated said it will "continue to study" the May portfolio, meaning more closings cannot be ruled out.

The Macy's in the Natrona Heights section of Harrison is not on the list for closing. It is within a few miles of the Kaufmann's that opened this month at the new Galleria at Pittsburgh Mills mall in Frazer. That store will be converted to a Macy's, as will the 2-year-old Kaufmann's at The Waterfront complex in Homestead.

There are about 760 employees at the three area stores being closed. Federated said staffs will be merged, with all management personnel "in good standing" retaining their jobs, in addition to the "vast majority of associates."

Any layoffs that do occur, the company said, will not happen before March 1.

The $11 billion Federated-May deal has been approved by shareholders of both companies and is expected to be complete by September, pending regulatory approval.

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"It would be nice to be able to keep the Kaufmann's name, for the history. But the real issue is to keep the Downtown store open."

-- Dan Onorato, Allegheny County chief executive

"It's going to be a heartbreaker for me to lose the Kaufmann's name. I knew the Kaufmann brothers when they first operated the store. I believe the name change will have a big impact on their business because people will stop saying, 'I'm going to Kaufmann's.' And I'll never think of the Kaufmann's clock as Macy's clock. It's a bad move."

-- Sophie Masloff, former Pittsburgh mayor

"Kaufmann's is a valued name in this region. But Macy's is an upper-tier name so the change in name should not have a major impact Downtown or in the region."

-- Herb Burger, a founder of the Pittsburgh Downtown Partnership and chairman of the Downtown Task Force, which is looking at ways to revitalize the city's Fifth and Forbes corridor

"We're disappointed that they're changing the name and we're losing the Kaufmann's moniker. On the other hand, Macy's is a great name and a quality organization, and we're looking forward to their continued commitment to Downtown and to being a good corporate citizen for the greater community of Pittsburgh."

-- Michael M. Edwards, executive director, Pittsburgh Downtown Partnership

"I don't think this will affect our business because we have a clientele of our own. But Kaufmann's has been here forever. It would be a shame to change the name now. It's hard to say what will really happen. Let's just hope for the best."

-- Walt Winowich, a 16-year sales associate at the Jos. A. Bank clothing store, Downtown

"Had the name change occurred 20 years ago, it would have been very significant. But with the changing retailing landscape here and elsewhere, consumers are less likely to care about the loss of the name now and instead will be more concerned that they have a suitable shopping replacement."

-- Greg Drahuschak, first vice president at Janney Montgomery Scott, a brokerage with a Downtown office

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