JCPenney teams with Martha Stewart for shop-in-shops

Retail Editor 2, December 7, 2011

Plano, Texas - JCPenney and Martha Stewart Living Omnimedia today announced a 10-year deal that will result in Martha Stewart retail shops inside most JCP stores.
JCPenney has acquired a 16.6% stake in Omnimedia. The deal includes the development of a joint ecommerce site, which is slated to launch in 2013.
The Stewart product assortment will include home and lifestyle merchandise designed and signed off on by Stewart and her team. JCPenney will source and market the products.
"Staffed by trained associates, the Martha Stewart stores will also give consumers direct access to the products and educational tips that have made Martha Stewart America 's leading lifestyle expert," the companies said in a joint announcement.

The alliance is expected to generate $200 million in revenue for MSLO, according to the release.

The glaring question: How does this impact Omnimedia's home merchandise deal with Macy's, which since its launch in 2009 has had the goal of ultimately becoming a $400 million business?

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