Macy's SUES to stop online rival Amazon using its iconic billboard at flagship NYC store and likens the move to advertising 'Pepsi on a Coca-Cola building'
Storied department store chain Macy's is embroiled in a fierce legal battle with online competitor Amazon over a piece of prime real estate in New York City.
In a lawsuit filed last week in Manhattan's State Supreme Court, Macy's claims the e-commerce conglomerate concocted a plan to advertise in front of the department store's iconic flagship in Herald Square.
Macy's filed the suit to stop the online giant from encroaching on what they say is their turf.
The lawsuit names the Kaufman Organization, the commercial real estate firm that owns the sought-after space that currently boasts an advertisement for Macy's, which has become a de facto Manhattan landmark.
The old-school department store has displayed its name on this awe-inspiring three-story-tall billboard for nearly six decades, above its iconic Manhattan location at 1313 Broadway
The billboard has sit adjacent to Macy's 120-year-old storefront - dubbed 'The World's Largest Store' - for decades, but could soon turn into an ad for the Seattle-based e-tailing empire, the suit states
For decades, the old-school department store has displayed its name on the awe-inspiring three-story-tall billboard, place prominently above its iconic Manhattan location at 1313 Broadway.
The billboard has sat adjacent to Macy's 120-year-old storefront - dubbed 'The World's Largest Store' - for 60 years, but could soon turn into an ad for the Seattle-based e-tailing empire, the suit says.
The filing further states that an ad from a competitor such as Amazon at such an emblematic location would cause the department store retailer 'immeasurable' harm.
Macy's management said it learned of Amazon's intentions to supplant the store's historic facade during lease-renewal talks with Kaufman in May.
During these talks, the retailer - which has become a proud fixture in New York City for more than a century, sponsoring iconic events like the Macy's Thanksgiving Day Parade - learned that Kaufman was involved in discussions with a 'prominent online retailer' about possibly renting the sign.
E-commerce conglomerate Amazon seeks to supplant the department store's iconic advertising space, May's' lawsuit alleges
There was 'little doubt' at that time that the retailer was Amazon, the complaint states.
Macy's of course owns its flagship building on 34th Street, but Kaufman owns the sought-after piece of real estate at the street's southeast corner on Broadway - the city's best-known thoroughfare - where the billboard is situated.
A small Sunglass Hut store currently occupies the building's storefront.
The Macy's billboard lease with Kaufman expired on August 31.
Macy's says in their suit that its original lease from 1963 bars any competitors from ever advertising on that space, but Kaufman disagrees, the complaint reads.
On Thursday, a representative for Kaufman denied that the company was in talks with Amazon.
'While the restrictive covenant will be up to a judge to make a decision, we want to make it clear that we've had no communication or negotiations with Amazon relating to the 1313 Broadway space,' the Kaufman spokesman told The New York Post.
But Macy's is irate over the prospective talks nonetheless, noting that the eye-catching advertisement holds a certain prestige, and is 'prominently seen and displayed, especially during the Macy's Thanksgiving Day Parade.'
The suit specifically states that another advertisement from a rival company supplanting the space would cause 'immeasurable' and irrevocable harm to the storied chain.
'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 attested in the suit.
'Imagine Pepsi on a Coca-Cola building or Mercedes advertising on the building of a BMW dealership,' Benjamin Brotzman, a member of Macy's retail group, wrote in the filing.
'Akin to a conquering enemy, it would be as if a competitor hung its "flag" on top of Macy's flagship department store and announced victory.'
Macy's spokesman Orlando Veras added that he is adamant that his company 'continues to have rights relating to advertisements at that location.'
With that said, the Macy's building is technically not connected to the billboard physically, which sits on a separate, small storefront next-door.
Countless shoppers and pedestrians in Midtown Manhattan encounter the giant billboard every day - and it has become a de facto fixture in The City That Never Sleeps
The edifice that houses the retail chain's flagship store is actually indented at the corner of 34th and Broadway, allowing space for the small building - on which the billboard is situated.
While conceding that the billboard is 'adjacent' to the 'world famous department store,' the complaint argues that to the 'naked eye the billboard is on Macy's department store.'
Thus, the suit alleges that Kaufman, who owns both the small building and the billboard, should be held accountable.
'For Amazon this is less about advertising and more about sticking it in Macy's eye and depriving Macy's of its marquee signage,' a real estate expert told The Post.
Macy's is now seeking the courts to intervene to stop Kaufman from leasing the space to Amazon or any competitor, according to the filing.
'Since the early 1960s Macy's has placed a billboard sign on the building adjacent to our flagship store at the corner of Broadway and 34th Street,' the company said in a statement.
'Macy's continues to have rights relating to advertisements at that location. We expect to realize the benefits of these rights and have asked the court to protect them.'
Amazon did not respond to a request for comment.
Macy's says in their suit that its original lease from 1963 bars any of its competitors from ever advertising on that space, in a suit filed against the Kaufman Organization - the real estate company that rents out the billboard to the department store chain
The suit specifically states that another advertisement from a rival company supplanting the space would cause 'immeasurable' and irrevocable harm to the storied chain, and that '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'
No comments