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Federated Department Stores plans to spend about $130 million over the next two years to drive online sales. Lundgren said the company's e-commerce business has posted "double-digit sales growth and improving profitability" in recent years. "We expect our direct-to-consumer sales to grow to more than $750 million by 2008 from about $450 million in 2005," he said. The Web sites involved include: macys.com, bloomingdales.com, macysweddingchannel.com and bloomingdalesweddingchannel.com. A 595,000-sq.-ft. distribution center in Portland, Tenn., breaks ground this month and will feature enhanced software systems; it will be dedicated to direct-to-consumer orders. In other news, Federated has been named among the top ten in the National Association for Female Executives Top 30 Companies for Executive Women; about 70% of management positions are filled by women and in senior management ranks, more than 50%. Three women serve on Federated's Board of Directors. Federated and Procter & Gamble are the only Ohio-based companies to make the list. A complete list is available at www.nafe.com.

Bloomingdale 's is launching the Barbara Barry Dream collection of bedding. It follows by a year the launch of the furniture and home accessories collection — also introduced by Bloomingdale's — plus fabrics and trimmings from Kravet. The collection, licensed under DWI Holdings, includes four bedding ensembles; bath is slated to roll out in the fall.

Williams-Sonoma will launch a new concept this fall, Pottery Barn Bed & Bath. The company expects to replicate the success it's had with the Pottery Barn Bed & Bath catalog and e-commerce sales in a bricks-and-mortar venue. Store locations and scheduled openings have yet to be announced. Pottery Barn also will test an outdoor catalog in April. West Elm continues to be Williams-Sonoma's fastest growing band and textiles and floor coverings are two categories poised for expansion.

Kmart paid Martha Stewart Living Omnimedia $28 million in royalties in the fourth quarter of 2005, up from $23.7 in the same period a year ago despite the decline in sales of Martha Stewart Everyday products. The company said those sales have "declined modestly in the quarter, with weakness in soft home partially offset by sales related to our recently introduced furniture line — Everyday Rooms." For the full year, MSLO merchandising royalty revenue reached $55.8 million, up 4.6%. The Kmart venture was the only profitable unit of the four MSLO divisions in 2005; the other segments are publishing, broadcasting and internet/direct commerce.

Robb & Stucky has hired industry veteran Steve McKee as its senior vice president and chief merchandise officer, a new position for the Top 100 company. McKee will be involved in all aspects of merchandising and product development, both domestic and international. McKee most recently was with Furniture Brands International's Henredon Furniture division; before that he was president of defunct retailer Home Co. from 1998 to 2002 and an executive with Minneapolis-based Gabberts for 11 years, leaving as president. Ranked No. 31 on Furniture/Today's survey of the Top 100 U.S. furniture stores, Robb & Stucky had estimated 2004 furniture, bedding and accessories sales of $262 million. This month it will open a Robb & Stucky Interiors Henredon store in Scottsdale, Ariz., the second of five planned.