Federated to invest $120 million on Internet retailing

Federated Department Stores said Wednesday that it plans to spend $120 million over the next two years to boost sales through five company Web sites and build a 595,000-square-foot Web distribution center in Portland, Tenn, the Cincinnati Enquire reports.

The infusion of capital is to get ready to handle Internet sales that are expected to grow by 67 percent by 2008, the newspaper reports. Federated also detailed a renewed emphasis on direct-to-consumer sales.

The company posted revenues of about $450 million from Web sales in 2005 through purchases at macys.com, Bloomingdales.com, Bloomingdale’s By Mail, macysweddingchannel.com, and bloomingdalesweddingchannel.com.