Macy’s has teamed with athletic shoe brand Finish Line to create branded shops set to launch next spring at 450 Macy’s stores and online at Macys.com. The deal makes Finish Line the department store chain’s exclusive athletic shoe partner.
When the roll-out is completed, and it is estimated that it will take until fall 2014 until all shops are installed, it is estimated that Finish Line will generate sales of $250 to $350 million dollars which is a meaningful amount for Finish Line. In fiscal 2011, The Finish Line recorded sales of $1,369 million and net earnings of $84.8 million. Macy’s reported 2011 sales of $26.4 billion.
Finish Line operates 638 stores in malls throughout the United States. The company, headquartered in Indiana, employs more than 11,000 sneakerologists (a new word for me) who are product specialists and understand all facets of athletic shoes. These specialists will now be trained for the Macy stores, so that expect advice will be available.
Macy’s has intensified their shoe presence, opening a 38,000 square foot department in the Herald Square store in New York City. This new development means Macy’s will receive only a licensing fee and not full profits from the department, but, importantly, it supports current customer demand for shoes in every classification. By having experts sell athletic shoes Macy’s is again one step ahead of the competition.