The Interpublic Group of Cos. agency won the account after a review that included Grey Global Group's Grey Atlanta and independent WestWayne, Atlanta.
Spending was not disclosed.
The Federated division has 77 stores: Rich's with 27 in three Southeastern states; Lazarus with 44 in five central states; and Goldsmith's with six in Tennessee. The three brands spent a combined $93 million on advertising in 2001, according to Taylor Nelson Sofres' CMR.
A spokesman for Rich's had said the chains will continue to work with the division's in-house agencies on day-to-day marketing communications.