Edited by: TJVNews.com
Seems like the iconic Macy’s billboard on the corner of West 34th Street and Broadway in midtown Manhattan may be facing some fierce competition for advertising space in what has been dubbed “Million Dollar Corner.”
Macy’s has said that online retail giant Amazon is planning to upstage “the World’s Largest Store” by renting out the same billboard on the corner of its flagship store on Herald Square.
The billboard is above a Sunglass Hut store on the corner and Macy’s has advertised there for 60 years. The advertising space is owned by Kaufman Realty and while Macy’s advertising contract was over in August, Macy’s has said that according to a deal signed with Kaufman Realty in 1963, the billboard owner is prohibited from allowing a competitor to enter into a contract for advertising on the billboard for perpetuity.
Macy’s has also claimed that an Amazon billboard in that spot would do “immeasurable” damage if a direct competitor took the space. Macy’s is particularly concerned about messaging as viewers of its nationally televised Thanksgiving day parade may see an Amazon sign in place of the Macy’s billboard.
According to a BBC report, in a complaint filed to the New York State Court last week, Macy’s said it learned in May that Kaufman was in talks with a “prominent online retailer” about potentially renting the space–and that there was “little doubt” it was Amazon.
“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,” it said.
Kaufman told the New York Post: “While the restrictive covenant will be up to a judge to make a decision, we want to make it clear that we’ve had no communication or negotiations with Amazon relating to the 1313 Broadway space.”
In a statement sent to the Post, Orlando Veras, a spokesperson for Macy’s said: “Since the early 1960s Macy’s has placed a billboard sign on the building adjacent to our flagship store. Macy’s continues to have rights relating to advertisements at that location.”
The Post reported that the prized corner is at the center of a retail war at the start of the 20th century.
The fight started in 1900, when Macy’s planned to move its flagship store from West 14th Street to 34th. The Siegel-Cooper Company, which owned the then-world’s largest store on 18th Street, operated near the original Macy’s in the Ladies’ Mile Shopping District. When Macy’s exited its 14th Street location, founder Henry Siegel sought to take over the lease on the building to capture customers unaware of Macy’s move. When he was rejected, he put a cunning plan into play, as was reported by the Post.
Robert “Pop” Smith, the owner of a nearby “cloak and suit firm” was also concerned that Macy’s move would draw customers away from the downtown shopping district. Acting on behalf of Siegel, Smith met the owner of the small 34th Street building in the corner of Macy’s planned lot and offered him $375,000 — the rough equivalent of $12 million today. Macy’s had only bid $250,000. Seigel hoped to use the building as wedge to score the lease on the 14th Street building, but Macy’s wouldn’t negotiate, according to the Post report.
Speaking to the NY Post, architectural historian and author of “Holdouts!: The Buildings That Got in the Way.” Andrew Alpern, 82, said “Macy’s built around them to spite the corner store. They cut into their own building.”
