Macy’s to open 450 in-store Finish Line shops
Cincinnati -- Macy's Inc. announced on Friday that Finish Line Inc. would be the department store retailer’s exclusive athletic footwear partner, opening in-store shops in more than 450 Macy’s stores nationwide. The merchandise will also be available online at macys.com.
Under the agreement, Finish Line will be Macy’s exclusive partner for men’s, women’s and kids athletic footwear and Macy’s will be the exclusive host for Finish Line-branded in-store shops.
“We believe the enhanced footwear assortment they will bring to our customers at every full-line Macy’s store nationwide, as well as on macys.com, complements our rapidly developing offering of activewear merchandise,” said Jeff Gennette, Macy’s chief merchandising officer. “With Finish Line on our team for athletic shoes, Macy’s will be a comprehensive and compelling destination for footwear across all categories – from dress to casual to comfort to athletic – for men, women, and kids.”
The rollout of the shops, which will be operated by Finish Line as leased departments, will start in spring 2013 with completion expected by fall 2014. (For the remaining approximately 225 Macy’s stores that carry footwear, Finish Line will manage the athletic footwear assortment and inventory beginning in spring 2013, without the staffing or branding provided in the leased departments.)
Finish Line will recognize sales and corresponding profits, less the licensing fee paid to Macy’s. Longer term, this agreement is expected to result in additional sales to Finish Line of $250 million to $350 million annually.
The agreement comes as Macy’s rival J.C. Penney has launched the first wave of its branded in-store shops, starting with Levi’s, Liz Claiborne and Izod. J.C. Penney eventually plans to transform its stores into a collection of some 100 branded shops.