Macy’s Request to Block JCP-Martha Stewart Deal Will Be Denied

A New York Supreme Court judge said he will deny Macy’s request to block its rival, J.C. Penney, from selling home goods from a Martha Stewart line in its stores according to Reuters.

Follow US!

Multichannel Merchant
Multichannel Merchant
Multichannel Merchant
O+F Operations and Fulfillment

According to the lawsuit, which was obtained by Macy’s spokesperson Jim Sluzewski last month, Macy’s and Martha Stewart Living Omnimedia made a business deal back in 2006 which granted Macy’s an exclusive license to manufacture and sell certain Martha Stewart products.

That agreement prohibited MSLO from entering into any other agreement with any third party retailer. However, in December of 2011 JCP and MSLO issued a statement announcing that the two had entered into a strategic alliance” with each other.

Soon after the announcement, Macy’s filed a lawsuit against JCP over who holds exclusive rights to sell certain Martha Stewart Living products. Macy’s claimed in the suit that alliance was a violation of its original agreement with MSLO.

According to the Reuters report, New York State Supreme Court Justice Jeffrey Oing said “its one thing to enjoin MSLO because that company is the centerpiece of these actions…It’s another thing to enjoin a retail company from doing business. We live in a free-market society.”

But Theodore Grossman, an attorney who is representing Macy’s “argued that the retailer will suffer irreparable harm if J.C. Penney is allowed to continue working under the contract with Martha Stewart Living,” according to

“Macy’s made a huge investment and took a huge risk in investing in Martha Stewart when it did,” Grossman said in the piece.

“Think of the Genius Bar at Apple stores,” Grossman was quoted in the article, “That’s what they’re trying to create, a Martha Stewart bar at J.C. Penney.”

J.C. Penney’s lawyer, Mark Epstein, according to Reuters, told the judges that the contract with Macy’s “only covers products that carry the Martha Stewart mark. Items that are designed by Martha Stewart but do not bear her brand are fair game, including products within Macy’s exclusive categories.”

In a statement to Reuters, Macy’s said the ruling will not affect its agreement with Martha Stewart Living. “J.C. Penney has agreed that it won’t sell Martha Stewart-branded merchandise in our exclusive categories as long as the MSLO injunction is in effect.”

Macy’s also said in the statement to Reuters that it expects to “continue to exclusively sell Martha Stewart-branded merchandise” in certain home categories until the terms of its contract with Stewart which expires in 2018.

Partner Content

Hincapie Sportswear Finds Omnichannel Success in the Cloud - Netsuite
For more and more companies, a cloud-based unified data solution is the way to make this happen. Custom cycling apparel maker Hincapie Sportswear has leveraged this capability to gain greater visibility into revenue streams, turning opportunities into sales more quickly while gaining overall operating efficiency. Download this ecommerce special report from Multichannel Merchant to more.
The Gift of Wow: Preparing your store for the holiday season - Netsuite
Being prepared for the holiday rush used to mean stocking shelves and making sure your associates were ready for the long hours. But the digital revolution has changed everything, most importantly, customer expectations. Retailers with a physical store presence should be asking themselves—what am I doing to wow the customer?
3 Critical Components to Achieving the Perfect Order - NetSuite
Explore the 3 critical components to delivering the perfect order.
Streamlining Unified Commerce Complexity - NetSuite
Explore how consolidating multiple systems through a cloud-based commerce platform provides a seamless experience for both you, and your customer.