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In exchange for the exclusive distribution arrangement, the department store organization was expected to aggressively promote Gold Toe brand socks. At the time of this case, Gold Toe socks were distributed by 57 of the top 100 department stores in the United States in the nation's largest cities, and by 127 other department stores serving small cities in the country. The Gold Toe brand was the only men's socks brand in the country to which an exclusive distribution policy was applied.
Branding was a major problem for most manufacturers of men's socks in the United States. The Gold Toe brand, however, had relatively high brand recognition among consumers...
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