US retail giant Federated Department Stores Inc and leading athletic footwear retailer, Footstar Inc, announced on Thursday that Footstar's Meldisco division will begin operating Federated's licensed children's shoe departments from July 1, 2002. The 46 children's shoe departments, currently operated by Stride Rite, will be redesigned with open-sell fixtures and will introduce Federated's new Greendog private brand of children's shoes.