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Why Amazon And Macy’s Are Fighting Over A New York Billboard

Why Amazon And Macy’s Are Fighting Over A New York Billboard

Why Amazon And Macy's Are Fighting Over A New York Billboard

Macy’s is caught up in a legal battle with its landlord to stop Amazon from advertising on a billboard placed atop its storied Herald Square store in New York City.

The retailer has filed a lawsuit asking its landlord, the Kaufman Organization, to pull the brakes on a deal with Amazon. The company alleges that Amazon’s advertisement on top of its flagship store would result in “immeasurable” harm to its business.

“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,” Macy’s said in court papers.

Macy’s has advertised on the billboard for more than 50 years, but the company’s lease on the advertising space expired in August, CNBC reported. At that point, Kaufman was already in talks to lease out the billboard to Amazon, Macy’s claims.

Macy’s also claims that its original lease included a provision that indefinitely bars Kaufman from leasing out the space to other retailers for advertising purposes.

“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,” a spokeswoman for Macy’s told CNBC.

“Macy’s continues to have rights relating to advertisements at that location,” she said. “We expect to realize the benefits of these rights and have asked the court to protect them. As the matter is in litigation, the company will not have any further comment.”

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