NEW YORK — Federated’s beating out May Co. in the department store derby.

That’s according to a report Friday by UBS analyst Linda Kristiansen, who said May Department Stores Co. has been outstripped by Federated Department Stores Inc. in the areas of strategy and execution. The divergence, she said, is beginning to show in the firms’ stores. Other analysts backed up the assertion that Federated’s pulled ahead.

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