Seeing Finish Line items at Macy’s might leave you wondering if the brand has been acquired by Macy’s. This article will reveal the reason behind Finish Line products display at Macy’s stores and how the two brands came together to work on this. Let’s know ‘Does Macy own a Finish line?
Macy’s does not own a Finish line. Instead, the brand operates as a partnership with Finish Line. The partnership agreement was made public in a press release by Finish Line in 2012; the statement revealed that Finish Line, starting from 2013, will become the official retailer of athletic shoes, accessories, and wears in over 450 Macy’s stores.
When did the Partnership Agreement happen?
The two brands came together to establish a partnership agreement in 2012. According to the terms of the agreement, the partnership was to take effect in the Spring of 2013 and concluded in 2014.
Details of the Partnership Agreement
Does Macy own a Finish line? Here are the details of the agreement as revealed by Finish Line;
- Finish Line becomes an Official Retailer at Macy’s
According to the agreement, each brand will have a role to play in contributing to the development of the partnership; Finish Line will be the official retailer in Macy’s stores. There will be departments created for them to display their products. Finish Line’s products displayed at Macy’s include; athletic footwear, accessories, and kits for both adults and kids. On the other end, Macy’s is to allow Finish Line to operate in more than 450 stores in locations across the US.
- Finish Line will operate in the form of a Lease.
Does Macy own a Finish line? Macy’s will allow Finish Line to operate in their stores in a lease. This means there will be periodic payment to Macy’s, and the agreement is not established to last forever. However, the leasing fee and licensing fee to be paid to Macy’s was not made public by the two brands.
- It is expected to generate revenue.
Like every partnership agreement in business, there is expected to be a positive turnaround for the brands involved. In this case, apart from the licensing fees that will be gotten from Finish Line, Macy’s is also expected to get more promotions through Finish Line’s presence in their stores. As a result, finish Line is projected to generate more sales of about $250 million to $350 million annually.
Why the Brands had a Partnership Agreement?
- Product Diversity
Being one of the nation’s leading retail outlets, Macy’s had to strategically look for ways to maintain its position at the top. The best way to do this is to provide customers with top-quality products; what better way to do this than to get a supplier who has also made their mark in the American retail industry—in addition, having Finish Line products in-store will help Macy’s step up its footwear game, thereby keeping customers satisfied with the diversity of products available.
- Increased market demographics
Finish Line has increased its market demographics by operating through a joint venture with other brands, which has helped to get their products sold at different stores and malls across the state. Before the partnership with Macy’s, Finish Line had worked with other brands such as Gart Capital Partners and the Running Specialty Group, which has helped increase their customer demographics to over nine locations in the US and Columbia.
Macy’s has over 840 stores across 45 states in the US and offers Finish Line a fantastic opportunity to grow its brand in more locations in the US.
The partnership agreement allowed the athletic wear brand to have access to display its products in over 450 Macy’s departmental stores. This is an excellent way to increase the brand’s publicity, which leads to more demographics for them.
- Increase sales
What better way can a growing brand increase sales than having an opportunity to sell at recognized retail stores in the US. This is the case of Finish Line and Macy’s, with Finish Line as a growing athletic wear brand and Macy’s as the leading retail brand. Finish Line was projected to make between $250 million and $350 million annually due to this partnership.
- Reduced operational cost
When considering the cost of expanding a brand, it usually involves spending a lot of money, time, and effort as the brand cannot just decide to build a store at any location they want. Many processes are required, and this can take a lot of time to complete. However, in the case of a partnership agreement, it usually requires less cost and effort, especially when the brands involved can complement each other and meet up the requirements of the agreement. For example, finishing Line’s agreement with Macy’s helped the brand save the cost of building stores in different locations from scratch and saved brand promotion costs.
Conclusion
Macy’s and Finish Line operate as partners; Macy’s does not own Finish Line. The partnership has proved helpful for the two brands as they have generated a lot of revenue. However, it should be noted that a partnership agreement cannot last a lifetime; any of the partners involved can decide to break up the agreement if the other party does not fulfill the contract’s details.
Frequently Asked Questions
- Can I have a Finish Line product returned at Macy’s?
You can have your item returned at the Macy’s store you got it or contact the brand customer’s support for assistance on how to go about it
- When did Macy’s acquire Finish Line?
Macy’s did not acquire Finish Line; the brand only had a partnership agreement. The agreement was established in 2012, and it took effect in 2013.
