Beginning in February 2013, the majority of JCPenney department stores will contain Martha Stewart in-stores with dedicated staff. JCPenney will market and source the products.
The companies will also jointly develop an e-commerce site, expected to launch in 2013. The site will offer Martha Stewart expertise and enable consumers to purchase items sold in JCPenney, as well as merchandise designed or selected by Martha Stewart.
JCPenney has invested $38.5 million for a 16.6 percent stake in MSLO. In addition, JCPenney will have representation on MSLO’s board of directors.
MSLO is expected to receive in excess of $200 million from JCPenney over the initial 10-year contract period, and will pay a special dividend of $0.25 per share on Dec. 30 to shareholders.
"The opportunity to work with Martha and create an entirely new shopping experience, both in-store and online, is a once in a lifetime opportunity," says Ron Johnson, chief executive officer of JCPenney. "The Martha Stewart brand embodies quality, beauty, inspiration and possibility and we intend for Martha Stewart stores to be a key centerpiece of our new strategy to transform JCPenney into America’s favorite store."
“To partner with JCPenney, Ron and his extraordinary team is a big and important step in realizing my dream of putting our Martha Stewart designed products within easy reach of an even broader consumer audience," says Martha Stewart, founder and director of MSLO. "I’m also very excited to work with JCPenney to create an online shopping experience, which will offer a broad range of Martha Stewart products.”