Posts tagged with "Macy’s"

Macy’s sues to block Amazon from filching the billboard at its Herald Square flagship

October 4, 2021

In the heart of Manhattan, a battle is brewing between the traditional, bricks-and-mortar department store Macy’s and the e-commerce giant Amazon.

According to a report by The New York Times, the disagreement is over the high-visibility billboard next to Macy’s flagship store in Herald Square. For 60 years Macy’s has advertised itself on the 2,200-square-foot perch that wraps around the corner of the building, with its star logo prominent against a red background during the annual Thanksgiving Day parade that Macy’s organizes.

Now Macy’s has sued to block Amazon from getting that prime piece of advertising real estate.

Last week the retail chain filed a lawsuit in New York State Court against the billboard’s owner, Kaufman Realty, claiming that the negative impact of allowing a “direct competitor” to promote itself from a block that has long been associated with Macy’s “would be immeasurable.”

“The damages to Macy’s customer good will, image, reputation and brand should a prominent online retailer (especially Amazon) advertise on the billboard are impossible to calculate,” Macy’s said in the complaint.

Amazon and Kaufman did not immediately respond to requests for comment.

In the suit, which was reported earlier by Crain’s New York, Macy’s accused Kaufman of discussing the billboard with Amazon before its lease agreement with Macy’s expired in August. Terms set in 1963 prevent Kaufman from allowing a Macy’s competitor to advertise on the billboard, a prohibition that “runs with the land forever,” according to the complaint.

Macy’s said in a statement that it “continues to have rights relating to advertisements” at the location, adding that “we expect to realize the benefits of these rights and have asked the court to protect them.”

Research contact: @nytimes

The play’s the thing: Toys ‘R’ Us is back with a little help from Macy’s

August 23, 2021

Toys “R” Us is getting a new lease on life, thanks to Macy’s. The two companies are partnering to sell toys on Macy’s website. The brands are also opening Toys “R” Us shop-in-shops at 400 department stores next year.

It’s the second attempt to revitalize the Toys “R” Us brand within three years, according to a report by CNN.

This relaunch is new owner WHP Global’s first significant strategy shift for the toy store. The New York-based brand management company bought the storied retailer in March with plans to build a “global network and digital platform” for Toys “R” Us.

For Macy’s, using the recognizable name could grow its toy business to compete against Target and Walmart. The department store said its toys sales have grown “exponentially” in the past year as parents try to entertain their homebound kids during the pandemic.

“Toys “R” Us is a globally recognized leader in children’s toys and our partnership allows Macy’s to significantly expand our footprint in that category, while creating more occasions for customers to shop with us across their lifestyles,” said Macy’s Chief Merchandising Officer Nata Dvir in a press release.

WHP Global bought Toys “R” Us from Tru Kids, which bought the failed brand in a 2018 liquidation sale. Tru Kids had big plans to open about a dozen standalone stores across US malls, but only opened two in New Jersey and Texas. Both later closed with the company blaming COVID-19.

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The store-within-a-store concept has been growing in popularity, with big chains like Target and Nordstrom looking for ways to keep shoppers coming back to their stores. Target is opening mini Apple shops and Ulta makeup shops at dozens of its locations and Kohl’s has partnered with Sephora to open 70 shops.

Research contact: @CNN