Martha, Martha, Martha

Big news for us here this morning...

WALL STREET JOURNAL (EASTERN EDITION)
New York, NY 04/06/2006
"Macy's To Launch Exclusive Line Of Martha Stewart Furnishings"
(Impressions: 805,180 )
Author: Ellen Byron
Macy's to Launch Exclusive Line Of Martha Stewart Furnishings By Ellen Byron

Federated Department Stores Inc. is expected to announce today that its Macy's division will launch an exclusive line of Martha Stewart-branded home furnishings, called Martha Stewart Collection. The line, set for launch in the fall of 2007, will include bed and bath furnishings, casual dinnerware, flatware, glassware, cookware, garden furniture and holiday decorations. Martha Stewart Living; Omnimedia Inc. already has an agreement to sell housewares and other home products under the Martha Stewart Everyday brand exclusively through Kmart, a division of Sears Holdings Corp. That agreement, which runs through 2009, will continue. The Macy's line will be positioned as "affordable luxury," said Martha Stewart, founder of Martha Stewart Living Omnimedia. "The products will be more upscale" than her current product offerings at Kmart, Ms. Stewart said. Federated's home-furnishings department has struggled to gain a foothold against discounters such as Target Corp. and home-furnishing superstores such as Bed Bath & Beyond Inc. As with other product categories, Federated has aggres? sively sought exclusive merchandise as a way to differentiate itself. "This line not only covers the fundamental parts of our home-furnishings business, it also allows us to expand our seasonal and holiday offerings," said Janet Grove, a Federated vice chairwoman and head of Macy's Merchandising Group. Federated's $17 billion acquisition of its rival May Department Stores Co. last year, which created a 850-store national department-store chain, made the agreement possible. "In our former self, we'd never be large enough to satisfy the demand potential of the Martha Stewart product offering," said Federated Chief Executive Terry Lundgren. "This is an advantage of the May acquisition." For Martha Stewart Living, finding new opportunities is important because nearly all its merchandising revenue currently comes from Kmart. When considering the agreement with Macy's, Martha Stewart Living conducted research that found some 30 million women go to a store specifically because it carries Martha Stewart products. "With all the new Macy's stores, virtually all our markets will be covered," said Susan Lyne, president and CEO of Martha Stewart Living.