DealBook: Macy’s to Review Martha Stewart Relationship

Macy’s is raining on Martha Stewart‘s parade.

The retailer said Wednesday that its relationship with Martha Stewart is under review. The decision comes after news that rival J.C. Penney is buying a 16.6 percent stake in Martha Stewart Living Omnimedia.

Ms. Stewart has several exclusive product lines at Macy’s, including cookware and bed linens, and is a star of their ads.

But with the J.C. Penney deal, she has promised products and marketing heft to a major competitor. In a note to clients, Paul Lejuez, an analyst with Nomura, said the new line, to be introduced in February 2013, should help Penney’s take market share from Macy’s, along with Kohl’s and Target.

In a tart statement, Macy’s suggested that the brand had gotten too ubiquitous.

“In light of the proliferation of Martha Stewart-branded product in the marketplace, Macy’s is reviewing the Martha Stewart products sold at Macy’s for potential changes in the future. No decisions have been made at this time,” the statement said. It added that the Martha Stewart products will be available at Macy’s “until further notice.”

Article source: http://feeds.nytimes.com/click.phdo?i=45def2e681cc9c0e6206a7e0303140cb