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October 31, 2007

HilfigerMacy's partnership is a WIN WIN

Analysis of: MACY'S AND TOMMY HILFIGER SIGN STRATEGIC ALLIANCE AGREEMENT | www.retail-merchandiser.com
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Analysis By:
Allan Zwerner
Independent Consultant, Allan Zwerner Consulting
Implications: Macy's win, is the exclusive with a brand that has a proven track record.Furthermore, with this exclusive there will be opportunities to improve Gross Margin performance.Hilfiger's win will benefit from the long term sales growth, as well as, reduce their sku count and sample lines etc, yes major expense savings will be had.

Analysis: This move will have tremendous plus for Macys within 6-12 months in markets that have a strong Hispanic population as well as on the Boarders of Mexico, it could produce $15-20m plus retail volume in the boarder and selected locations.In some of these markets Tommy generates more volume than Polo.
Dillards and SSI stores will have to work fast to replace the volume in selected doors which could have implications for those respective Malls, not to have a highly demanded brand.
Lastly when was the last time a retailer has taken a successful brand exclusive, with a high consumer recogination, not too that the Hilfiger brand has had and still does well inother classification ie home textiles, and in time willprobably bring back the childrens business.

Other Analyses of the Same Source Article:
Macy's and Tommy is WIN/WIN!
November 1, 2007, Author: GLG Expert Contributor
Tommy Hilfiger move at Macy’s is too little, too late.
October 30, 2007, Author: Mark Sussman, President and Chief Executive Officer, Pyramid Solutions, Inc.
Better for Tommy than Macy's
October 29, 2007, Author: GLG Expert Contributor
Tommy Hilfiger Big Winner in Macy's Deal
October 26, 2007, Author: Nicholas White, President, White & Co

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