PENNEY, KOHL'S EYE MAY'S MODERATE BUSINESS.(J.C. Penney Corporation Inc., May Department Stores Co.)

HFN: The Weekly Newspaper for the Home Furnishing Network, June, 2005 by Thau, Barbara

Byline: Barbara Thau

NEW YORK-May's moderate business is up for grabs. And J.C. Penney and Kohl's each have dibs on it.

J.C. Penney and Kohl's chief executive officers are betting that Federated Department Stores will unwittingly cede market share to the chains when the retailer extends its trade-up strategy to May Department Stores Co. when it acquires its longtime rival in the third quarter.

"When you look at Federated's approach to more private label and trading up -- and out of -- part of the moderate space that we occupy, and the fact that they're going to take May Co., which has been a fairly formidable moderate competitor, I would think there would be opportunity for ourselves as well as J.C. Penney," said Larry Montgomery,...