On acquisition path
American retailer J.C. Penney acquires a 16.6 % stake in Martha Stewart Living and will open space at the majority of its stores for Stewart by 2013
New Penney CEO Ron Johnson (ex Apple Inc.) since November stated that he will add more name brands to the Penney lines in order to compete with more successful competitors such as Macy’s and Kohl’s.
The stake in Martha Stewart Living is intended to somewhat compensate the weak spot that is Penney’s home business. Penney is buying the stake of 16.6 % for USD 3.50 a share or a total of USD 38.5 million. The stores within the stores will start out in February 2013 and it is estimated that over the life of the contract Martha Stewart Living is receiving more than USD 200 million.