October 26, 2007
Macy's Inks Exclusive Deal with Hilfiger
NEW YORK – Macy's has inked a deal with Tommy Hilfiger U.S.A., Inc. to be the only department store retailer of Tommy Hilfiger's men's and women's sportswear, starting in fall 2008.
In what is being called a strategic partnership, Macy's has agreed to expand the Hilfiger merchandise in each of its divisions, including macys.com, and to promote and highlight the brand in stores. Hilfiger will still operate its own freestanding stores and tommy.com.
The apparel company will continue to work with its various licensees to distribute its products "on a nonexclusive basis through Macy's, as well as other accounts," the company said in a statement.
Macy's CEO said Terry J. Lundgren commented in a news release: "Tommy Hilfiger already is one of the most successful vendor resources at Macy's and a brand that our customers expect to find in our stores. Both men's and women's merchandise have been performing well for us. Through this exclusivity agreement, we will bring our customers an increasing level of compelling and distinctive fashions that are consistent with their aspirations and lifestyles. Strong and well-established brands like Tommy Hilfiger set Macy's apart. So offering this brand on a much more exclusive basis is another powerful reason for customers to choose to shop at Macy's."
Tommy Hilfiger CEO Fred Gehring called it a "win-win," adding that "This new direction in our wholesale strategy will be complemented by a simultaneous expansion of freestanding Tommy Hilfiger retail stores in key locations across the country."
Tommy Hilfiger himself called Macy's his brand's "most important account and an excellent partner." He commented that it was the consolidation in department stores that led to this deal.
Source: www.MRketplace.com