Macy’s steps up footwear game with Finish Line
More than 450 Macy’s stores will feature branded Finish Line footwear departments as the department store retailer and athletic footwear chain have entered into an exclusive agreement.
The deal addresses a major merchandising deficiency for Macy’s as department store retailers are not generally viewed as a destination for athletic footwear. The deal also accelerates growth for Finish Line which currently operates 638 predominantly mall-based U.S. stores compared to Macy’s approximately 840 locations.
The branded Finish Line departments within Macy’s stores will operate as leased departments with Finish Line recognizing sales and corresponding profits, less the licensing fee paid to Macy’s. Longer term, the agreement is expected to result in additional sales to Finish Line of $250 million to $350 million annually, according to the companies.
The rollout process is expected to begin in the spring of 2013 with completion not expected until the fall of 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, but won’t provide staffing or branding elements of the Finish Line departments in Macy’s other stores. Athletic shoe assortments selected by Finish Line also will be available on macys.com beginning in spring 2013.
"We believe the enhanced footwear assortment (Finish Line) 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."
According to Finish Line chairman and CEO, Glenn Lyon, the deal further positions the company as a leading omnichannel retailer.
"Macy’s large and profitable store portfolio, its customer base that is concentrated in a demographic that Finish Line has not penetrated to date, and most importantly, its customer-centric philosophy and omnichannel focus make them an ideal partner for us to broaden our reach beyond our bricks and mortar stores and our website," said Lyon. "The strength of our brand, our strong vendor relationships that allow for an extremely compelling product offering, as well as our industry-leading omnichannel capabilities created this attractive opportunity."