Macy’s, Penney to Spar in Court Over Martha Stewart Living Omnimedia, Inc. (MSO)

And the deal with Martha Stewart is part of J.C. Penney’s plan to reinvent the struggling department store under Johnson, who became CEO of the Plano, Tex., company in November 2011 after helping to create the look and feel Apple’s iconic stores.

The department store has struggled with mounting losses and sharp sales declines since early last year after shoppers were turned off by a new strategy that eliminated most sales in favor of lower prices every day.

J.C. Penney began adding shops featuring new hip brands last year and plans to overhaul the home department this spring with new names like Jonathan Adler and Michael Graves.

Martha Stewart, however, is at the center of the retailer’s home products revamp.

As for Macy’s, having another major department store sell Martha Stewart towels, pots and other merchandise could dilute its business.

Burt Flickinger, III, president of retail consultancy Strategic Resource Group, says that if J.C. Penney is unable to carry Martha Stewart, it could hurt the chain tremendously.

“It leaves Penney with one less power brand,” Flickinger said.

Judge Oing will be deciding the outcome of the trial, rather than a jury.

The article Macy’s, Penney to Spar in Court Over Martha Stewart originally appeared on Fool.com and is written by Associated Press.

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