Macy’s Sues Its Famous Billboard Space To Prevent Amazon Taking Over
Photo 124170682 © Ymgerman | Dreamstime.com
Outside the Macy’s flagship store in Herald Square, New York, there is a giant billboard that has carried the familiar name for almost 60 years.
In its annual nationally-televised Thanksgiving parade, the billboard is very much visible. It’s become almost a part of the department store despite not being owned by the company itself.
But now, it’s at risk of being taken over. And if that wasn’t bad enough, the company that could have its branding displayed there instead is none other than its competitor, Amazon.
According to the department store, there has been a restrictive covenant in place since 1963 that has meant that the billboard can’t be used by any competitor of the company.
However, when the lease renewal came into discussion this year, the Kaufman Organization, the billboard owners, didn’t allow Macy’s to renew its side of the deal as usual. Instead, it was told that they were currently negotiating with a “prominent online retailer.” Although no names were stated, Macy’s has “little doubt” that the organization meant Amazon.
Hence the lawsuit. It was filed last week in Manhattan’s Supreme Court, in which the department store asked the judge to prevent Kaufman from giving the space to any competitor including Amazon.
According to the lawsuit, having anyone else advertise on that billboard would do “immeasurable” damage.
“The damages to Macy's customer goodwill, image, reputation and brand, should a ‘prominent online retailer’ (especially, Amazon) advertise on the billboard are impossible to calculate,” the company declares.
[via NPR, cover image 124170682 © Ymgerman | Dreamstime.com]
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