Macy's to open 450 Finish Line shops-in-shops
(Reuters) - Macy's Inc (M.N: Quote) said on Friday that Finish Line Inc (FINL.O: Quote) would be its exclusive athletic footwear partner, opening shops in more than 450 of the company's department stores.
The deal comes as department store chains race one another to build out "shops-in-shops," which offer more elaborate presentations of top brands and turn each store into something of a mall.
Macy's archrival J.C. Penney Co Inc (JCP.N: Quote) is in the middle of turning 700 of its 1,100 department stores into a collection of 100 boutiques by 2015 and is planning to beef up its offering of products by Finish Line competitor Nike Inc (NKE.N: Quote).
Longer term, the Macy's deal should boost Finish Line's sales by $250 million to $350 million a year, the companies said in a joint statement. Finish Line, which will also have a presence on Macy's website, will keep the sales and corresponding profits, minus a licensing fee for the department store chain.
Finish Line will operate more than 450 locations as leased departments starting in the spring. For about 225 Macy's stores that sell shoes, Finish Line will manage the athletic shoe assortment and inventory, also beginning in the spring.
(Reporting by Jessica Wohl in Chicago and Phil Wahba in New York; Editing by Gerald E. McCormick and Lisa Von Ahn)
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