The Lids Sports Group division of Genesco has signed an agreement with retail giant Macy’s to run hundreds of licensed locations inside the latter’s department stores.
As part of the exclusive agreement, Genesco plans to open 25 pilot stores this fall and ramp up next spring to open another 175 locations in cities with major professional and collegiate sports teams. Both the mini-stores and an online presence will go by the name of Locker Room by Lids.
“The opportunity to partner with Macy’s allows us to immediately capture underserved markets in virtually every major sports city in the U.S.” said Ken Kocher, president of Lids Sports Group, which rang up fiscal 2013 sales of $780 million. “Combining our expertise in sports licensed merchandising with Macy’s retail dominance gives us the ability to serve a much larger cross section of sports fans both in-store and online.”
Genesco will sell apparel and hats for men and women as well as various home goods in the mini-stores, which will range in size between 500 and 1,000 square feet. The average Lids Sports Group store is 1,150 square feet.
“Our customers are passionate fans of their sports teams, whether they be local or elsewhere in the country,” said Jeff Gennette, Macy’s chief merchandising officer. “This is a natural and powerful expression of our My Macy’s approach to serving local customers [...] These new teamwear departments will complement our established assortments in active apparel and accessories, as well as athletic footwear now being supplied to Macy’s customers in partnership with Finish Line.”
Shares of Genesco (Ticker: GCO) were down almost 1 percent Wednesday morning to about $69.30. So far this year, they’re up about 25 percent.