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Dayton Hudson's department store division has 37 stores, divided mostly between the Minneapolis and Detroit areas.
Operating profit at the group's department store division dropped almost 9percentt in the first nine months of the year.
"The rent is prohibitive," said Andy Stockel, president of the company's store division, about the store's closing.
Mr. Harris, a former president of the Gemco discount store division of Lucky Stores Inc., became Schwarz's president last August.
John Fletcher, the chief executive, said the Myer-Grace department store division posted a profit in the year, which ended July 27, reversing two years of losses.
Her father, a retail and real estate consultant, was until May 2001 the president of the retail store division of Nautica Enterprises, the clothing maker in New York.
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The earnings included costs related to combining its various store divisions and early debt redemption.
Mr. Lenk said that the Athleta retail store's placement in his division had "nothing to do with the relative performance" of the online and store divisions.
Federated Department Stores Inc., the nation's largest operator of department stores, is planning to merge its two Middle West department store divisions, Wall Street and retailing sources said yesterday.
It has not yet been decided how to handle advertising for the other department store divisions within the group, although West Wayne is being considered.
The New York-based Bloomingdale has been in voluntary bankruptcy along with its parent, Federated Department Stores Inc., and eight other store divisions since Jan . 15
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