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Macy's, Tommy Hilfiger Hook Up

Department-store operator Macy's Inc. on Friday said it agreed to be the exclusive department-store retailer for Tommy Hilfiger U.S.A. men's and women's sportswear in the U.S., beginning in fall 2008.

Financial terms were not disclosed. Under the deal, Macy's will expand Hilfiger merchandise in every Macy's division and on macys.com. That means that within the next 10 months or so Tommy Hilfiger sportswear will no longer be distributed in stores like Bon-Ton Stores Inc. and Dillard's Inc.

The deal is the latest in a slew of exclusive agreements between store chains and designers as a way to differentiate themselves in a fiercely competitive environment. But the Macy's-Tommy Hilfiger partnership is different from others because of the designer's immense popularity in the marketplace.

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