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Shares of Martha Stewart Living Omnimedia (MSO +4.3%) get a little pick-me-up after a judge in...

Shares of Martha Stewart Living Omnimedia (MSO +4.3%) get a little pick-me-up after a judge in the trial between the retailer and J.C. Penney against Macy's (M +1.1%) throws the case into mediation. Does J.C. Penney (JCP +1.6%) have the time to wait out a protracted settlement negotiation? Retail watcher The Talented Blonde notes that the MSO-JCP deal was designed to bring back its once-strong home department. The clock is ticking.
Comments (3)
  • mrflexibility
    , contributor
    Comments (35) | Send Message
     
    Martha's deal with JCP is appalling. The idea of partnering with Macy's was to benefit both parties. But you aren't benefiting Macy's when you are selling to direct competitors. The thing MSO doesn't seem to have figured out yet is that, forgetting about contractual obligations, the Martha brand is worth more with exclusivity attached as part of the deal. That is, MSO can get a bigger slice of the pie from Macy's if MSO agrees not to sell to direct competitors because the deal then is worth more to Macy's. Customers would know, if you want Martha skillets, you've got to go to Macy's, that's the only place you can get them, and you're going to have to pay the price. The JCP deal should have been contingent on Macy's not renewing their contract. Instead, Martha has pursued a course that would be expected to damage her partner. What kind of a partner would do that? Why would anyone in their right mind want to have Martha as a partner in the future? And even if they did, they would discount the privilege. And all these hard feelings from doing a deal with a company whose very survival is currently in question. Martha! Beg to be excused from this JCP deal and apologize to Macy's (it's about time we saw some humbleness from you!) Promise to build the business of Macy's as long as you are their partner. And don't even think about selling Martha paint at Lowe's! And for good measure, how about taking a pay cut until MSO starts rewarding its all-too-patient investors with regular dividends?
    8 Mar 2013, 06:48 PM Reply Like
  • Penneypal67
    , contributor
    Comments (12) | Send Message
     
    What have they got to talk about? When Martha Stewart made the deal with JCPenney she knew she was doing wrong/ Why on earth would dhe go behind Macys back and make such a deal? I worked for J C Penney for 40 + years. They had their ups and downs but yet they survived. But when they bring in someone who did good for Apple. There are different types of retail. The high priced good such as computers and clothing and home goods. It is like putting oranges and apples in one basket and hoping they come out as fruit salad. I believe the board of J C Penney 's should look at Ron Johnson and tell him the party 's over
    and to please GO!!! He has done enough harm to a good company.
    9 Mar 2013, 01:05 PM Reply Like
  • JCPonderings.weebly.com
    , contributor
    Comments (45) | Send Message
     
    The sad part is that Martha's stuff is poorly rated at Macy's. So fighting to get uninspired designs with mediocre quality doesn't work no matter how you slice it.

     

    I just published more details about this at my blog.
    11 Mar 2013, 07:01 AM Reply Like
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