Macy's will be the exclusive retailer of Tommy Hilfiger sportswear in the U.S. beginning next fall. Macy's stores already sell Hilfiger men's, women's, accessories and home products, but the new
arrangement means Hilfiger will phase out its sportswear distribution to other department stores. The deal also calls for a major ad campaign, marketing initiatives and the development of new products
exclusively for Macy's.
Tommy Hilfiger will continue to operate its own freestanding stores and sell online at tommy.com. All product distributed through Hilfiger's licensees--including home, footwear, accessories, watches and fragrances--will continue to be sold on a nonexclusive basis to Macy's and other retailers.
The strategy reflects Macy's drive for exclusives or products with limited distribution, which Terry Lundgren, Macy's chairman, CEO and president, says has grown to represent about one-third of the $27 billion in revenues Macy's generated last year. Other designers have come forward with similar proposals, Lundgren says, but none are as big as Hilfiger.