Penney’s and Macy’s Battle Over Martha Stewart Products

There is an increased tension between two of the most popular and well recognized department stores, Jcpenney and Macy’s, over Martha Stewart’s house goods. Macy’s officially, by contract, sells these products, but Martha Stewart has now gone to Jcpenney to create business with her house products. This is a great opportunity for Jcpenney to increase its business because they have announced “a $552 million loss and steep sales declines in the fourth quarter, as well for the year.” From a legal standpoint, Macy’s argues that Martha Stewart cannot sell her products at other competitors because they are linked by an official contract. However, Jcpenney is split up into smaller divisions within. This raises the unanswered question of where Martha Stewart products should belong. This trial will take place in New York State Supreme Court.

This is an interesting topic because it is common knowledge that Jcpenney and Macy’s are competitors. Now that they are in an actual competition that involves lawsuits, it will be interesting to see how the case plays out and who will be ascertained correct in selling Martha Stewart home goods. Although Jcpenney poses a good argument against Macy’s, I think that Macy’s is right from a legal standpoint. Macy’s and Martha Stewart are tied through an official business contract. Breaking that contract is illegal and unjust for the business of Macy’s.

Written By: Kerian Maharaj

Source:

http://www.nytimes.com/2013/03/02/business/penneys-and-macys-battle-over-martha-stewart-products.html?pagewanted=all&_r=0

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