Macy's Sues To Keep Amazon Advertisements Off Iconic Herald Square Store
Retailer Macy’s has sued to keep e-commerce giant Amazon from advertising on its iconic Herald Square store in New York City, arguing that allowing it to do so would cause “immeasurable” damage to its business.
“The damages to Macy’s customer goodwill, image, reputation and brand should a prominent online retailer (especially Amazon) advertise on the billboard are impossible to calculate,” Macy’s said in court papers filed Friday in a New York state court.
In its lawsuit, Macy’s is pushing to stop the site’s owner, the Kaufman Organization, from going ahead with any deal with Amazon to stop it from advertising on the site of its flagship store. It specifically argues that a clause in its earlier contract with Kaufman prevents any other competitor from using the space for advertisements.
According to The Real Deal, Macy’s was seeking a renewal on advertising space at its 1313 Broadway location in May, three months ahead of the expiration of a 10-year lease in late August. Kaufman at the time alleged it was working with a “prominent online retailer” on an advertising deal, but the lawsuit does not name Amazon as a defendant. Macy’s, however, suspected it was Amazon based on the online giant’s plans to open stores in nearby locations in New York.
Macy’s insisted that a provision of its earlier contract with Kaufman barred indefinitely other retailers from advertising on the site. Kaufman’s lawyers rejected this claim, however, and the retailer is hoping a judge will verify this clause in their earlier contract.
Macy’s Herald Square store is akin to sacred ground for the company. The location first opened in 1902 and it has been advertising at the spot since at least the 1960s, earning it a place as one of New York City’s most iconic spots. The site was even named a National Historic Landmark in 1978 by the U.S. government in an ode to its historic significance.
The fear of Amazon marketing itself on the heart of its franchise is particularly palpable for Macy’s because of how Amazon has chipped away at traditional retailers’ business for years.
In its lawsuit, Macy’s went so far as to compare it to a “conquering enemy” in its filing, underscoring its worries about giving any boost to Amazon if it was allowed to advertise on Herald Square.
“Akin to a conquering enemy, it would be as if a competitor hung its ‘flag’ on top of Macy’s flagship department store and announced victory,” Macy’s said in the lawsuit.
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