- Macy’s is embroiled in a legal battle with its landlord to prevent Amazon from marketing it on the billboard that sits at the top of its most iconic flagship store.
- The department store chain has asked the New York City-based Kaufman Organization to block a potential deal with Amazon to use a billboard above its storied Herald Square location, according to a lawsuit filed in the State Supreme Court in Manhattan.
- Macy’s claims that any advertising from its online competitor would cause “measurable” damage to its business.
Macy’s is embroiled in a legal battle with its landlord to prevent Amazon from marketing it on the billboard that sits at the top of its most iconic flagship store.
department store chain New York City-based Kaufman Organization According to a lawsuit filed in the state’s Supreme Court in Manhattan, a possible deal with Amazon to use the billboard above its storied Herald Square location to block a potential deal.
The complaint states that Macy’s is claiming that any advertising by its online competitor will cause “immeasurable” damage to its business.
“The damage to Macy’s customer goodwill, image, reputation, and brand is impossible to calculate should a major online retailer (particularly Amazon) advertise on billboards,” Macy’s wrote in court papers reviewed by CNBC. said in.
Macy’s has been advertising its business on billboards for more than half a century. But the lease for the space recently expired in August, and Macy’s claims it failed to come to an agreement with Kaufman. According to the complaint, Kaufman was in talks with Amazon by that time.
However, Macy’s is claiming that its original lease on Billboard Space included a provision that indefinitely barred any other retailer from advertising on Billboard.
Representatives for Amazon and the Kaufman Organization did not immediately respond to CNBC’s requests for comment.
“Since the early 1960s, Macy’s has put up a billboard sign on the building adjacent to our flagship store at the corner of Broadway and 34th Street,” a Macy’s spokesperson told CNBC in an emailed statement.
“Macy’s continues to have rights related to the ads in that location,” she said. “We hope to realize the benefits of these rights and have asked the court to protect them. Since the matter is in litigation, the company will not comment further.”
Crain’s New York first reported Court battle.