The May Department Stores Company and The Knot Announce Marketing Alliance; May Invests $5 Million and Acquires a 19.5% Interest in The Knot
ST. LOUIS, Feb. 25 /PRNewswire-FirstCall/ -- The May Department Stores Company (NYSE: MAY) and The Knot Inc. (OTC Bulletin Board: KNOT) announced today a strategic marketing alliance that will link the number-one wedding planning site, TheKnot.com, to the wedding gift registry sites of May's full-line department store companies. With a $5 million strategic investment, May has also purchased a 19.5% interest in The Knot -- the world's principal online wedding planning resource, which has over 2.3 million registered members. May will also have representation on The Knot's board of directors.
Under the terms of the alliance, May and The Knot will implement a multi-platform marketing campaign to promote May's department store companies that offer wedding registry services -- Hecht's, Strawbridge's, Foley's, Robinsons-May, Filene's, Kaufmann's, Famous-Barr, L.S. Ayres, The Jones Store and Meier & Frank -- to the largest audience of engaged couples and wedding guests on the Web and in stores. These promotions will include online advertising and in-store promotions, direct mail and e-mail campaigns, and advertisements in The Knot's magazines, The Knot Wedding Gowns and WEDDINGPAGES(R).
"We are excited and energized about this alliance," said Gene S. Kahn, May's chairman and chief executive officer. "This is an unparalleled opportunity for May to team with the premier source for wedding-related information. The Knot has impressive brand recognition among today's engaged couples and is acclaimed for offering savvy, fresh ideas and great information for wedding planning."
"The strategic implications of this alliance are very powerful," continued Mr. Kahn. "Demographics show that the $70 billion bridal industry is ready for significant growth. The combination of our alliance with The Knot, our department stores' wedding registries, and our other specialty bridal businesses position May to serve key areas of the wedding event for a wide range of customers. Equally important, this alliance further supports our quest for the younger customer and gives us yet another opportunity to build important synergies with our department stores and introduce our home merchandise to a highly targeted audience of new customers."
"We are thrilled that May has tapped The Knot as its premier wedding information provider and e-commerce partner," said David Liu, co-founder and chief executive officer of The Knot. "We welcome May's strategic investment in The Knot and we anticipate great success of this alliance, which will unite the number-one wedding Web site, the largest regional wedding publication, and one of the nation's leading wedding registries."
Liu continued, "This marketing initiative with May supports The Knot's continuing mission to enhance the quality and quantity of wedding gift services offered to today's largest audience of engaged couples and guests seeking wedding gifts on the World Wide Web." |
