Martha Goes Upscale at Macy’s
By George Anderson
Martha Stewart and Edward Lampert may be having some difficulty coming to terms on a new deal on the Martha Stewart Everyday line at Kmart but the domestic diva has no such difficulty with Macy’s.
According to a report in The Wall Street Journal, Federated Department Stores is expected to formally announce today that it has signed an exclusive deal with Martha Stewart Living Omnimedia Inc. to sell an upscale line of home furnishings under the Martha Stewart Collection brand.
The line, set to be rolled out in the fall of 2007, will include bed and bath fashions, cookware, furniture and holiday decorations. It is not expected to affect Ms. Stewart’s deal with Kmart, which runs through 2009.
Janet Grove, a Federated vice chairwoman and head of Macy’s Merchandising Group, told the Journal, “This line not only covers the fundamental parts of our home-furnishings business, it also allows us to expand our seasonal and holiday offerings.”
The department store chain is looking for the Stewart line to help it compete with the likes of Target on one end and Bed Bath & Beyond on the other.
Federated’s CEO Terry Lundgren said the deal with Ms. Stewart is a benefit of Macy’s national branding strategy. “In our former self, we’d never be large enough to satisfy the demand potential of the Martha Stewart product offering,” he said. “This is an advantage of the May acquisition.”
Moderator’s Comment: What will Macy’s deal with Martha Stewart mean for the department store chain? How will Macy’s handle promoting and merchandising
the Stewart line differently than Kmart has?
According to Martha Stewart Living’s own research, 30 million women go to a store specifically to buy Martha Stewart branded products. –
George Anderson – Moderator
- Macy’s to Launch Exclusive Line of Martha Stewart Furnishings – The Wall Street Journal