Macy's to open new store in Chestnut Hill

Macy's is planning to open one of its most upscale department stores in the country this March in space being vacated by Bloomingdale's in Chestnut Hill.

"This is a fantastic retail environment," said Terry Lundgren, chairman and chief executive of Federated Department Stores, which owns Macy's and Bloomingdale's, at a meeting this morning. "This will be clearly among the most upscale stores we have."

Bloomingdale's is moving next month its women's apparel collection down the street into the Mall at Chestnut Hill in a space that Filene's once occupied. The relocation is part of Federated's $17 billion takeover of regional chains across the country.

Federated completed last month a conversion about 400 regional department stores, including Filene's, into the Macy's brand, creating a national shopping empire of more than 800 stores.

Lundgren, speaking this morning before the Greater Boston Chamber of Commerce, said he is also in talks with real estate firm New England Development about other opportunities for Bloomingdale's in the market. Currently, there is only one Bloomingdale's in Massachusetts.

New England Development, which owns the Cambridgeside Galleria mall and is working on a South Boston waterfront project, could not be reached for comment this morning.

Federated had considered the Lord & Taylor location in the Back Bay as a possible spot for Bloomingdale's before the company sold the chain, but decided against it, Lundgren said.

"It's hard to find the right spot in Boston," he said. "But we would look downtown."

Across the market, Federated is planning remodels and renovations to Macy's stores and upgrading the assortment at locations including Downtown Crossing and Natick.

"We're important to Boston, and clearly Boston is important to us," Lundgren said.

Lundgren also said that the company has completed job cuts related to the takeover. In Massachusetts, the deal resulted in the closing of seven stores and the elimination of about 1,500 positions at Filene's corporate headquarters and department stores around the state.

(By Jenn Abelson, Globe staff)