JCPenney has bought a minority stake in Martha Stewart Living Omnimedia for $38.5 million in an effort to refresh its department store image.
The retailer's 16.6% stake in MSLO includes a 10-year retail partnership, which will include Martha Stewart-branded shops within most JCPenney department stores and a joint e-commerce site in 2013. The deal also includes JCPenney gaining representation on MSLO's board of directors.
The shop-in-shops will feature home and lifestyle merchandise designed by Martha Stewart and her team. Staff associates will also give Stewart-inspired tips to customers, according to the joint-issued press release.
Meanwhile, Macy's, which sells Martha Stewart-branded products, has said it will review its partnership.
Jeanne Meyer, SVP of communications at MSLO, and Darcie Brossart, VP of communications at JCPenney, were not immediately available for comment.
PRWeek reported on Wednesday that JCPenney hired DKC as an agency partner to support its fashion brands following an RFP process. It also hired PMK-BNC earlier this month.