Macy's has signed an agreement with Apple to open a store inside the company's iconic Herald Square store in Manhattan.
Jeff Gennette, Macy's president and future CEO, told analysts that the deal calls for a full-fledged Apple boutique inside the store and also allows Macy's to sell the Apple Watch at roughly 180 stores in time for the holidays.
Macy's has strategically added branded in-store boutiques to select stores. Finish Line, Sunglass Hut, Bluemercury – which Macy's purchased in February 2015 for $200 million – and Best Buy have a presence inside some of the chain's department stores.
At 1 million sq. ft., the Herald Square flagship has room to spare, and as Macy's closes 100 stores and reconfigures others, there will be more strategic partnerships to come.