“That’s where we have the biggest growth opportunity in private brands,” she said. Macy’s views On 34th’s audience as those in the “adulting-to-primetime life stage,” or people between the ages of 40 and 60, Erusha-Hilleque said. Macy’s plans to promote the launch via brand shops in its stores, online videos, digital landing pages and an influencer campaign involving some 50 participants. On 34th is geared towards women, and its prices range from $18.50 to $299.50. Macy’s first new private brand includes 750 SKUs that Macy’s says can be mixed and matched to create more than 1,000 outfits. At the same time, “we punch them up with new print and pattern, optimistic color, dreamy fabrics that wash and wear incredibly well,” Erusha-Hilleque said. On 34th, for example, includes wardrobe staples like pants and tops that shoppers can easily slip on. It is also using its private brands to reflect trends and up-to-date styles. Macy’s has made other changes, too, including tweaking its fabric and construction standards and narrowing its supplier base. Using its own data points and Alvanon’s, Macy’s adjusted its private-brand clothes to make them more universal and lowered its number of fits across its private brands from five to two. Then, to help make garments more consistent, Macy’s turned to Alvanon, a fashion-technology company that has conducted thousands of body scans. First, it broke down the fits of its menswear, womenswear and kidswear. Macy’s is putting the work in to give its new private brands a running start.”Īfter hearing that customers wanted to shop the same size across brands, Macy’s zeroed in on fit. “It’s a good sign that Macy’s isn’t just throwing a dart. “Retailers have more data available and better tools for acting on it,” she told Modern Retail. It’s an approach that Carol Spieckerman, president of Spieckerman Retail, praised. It conducted more than 100,000 online surveys, and its executives spent hundreds of hours with shoppers to determine what they wanted out of a private brand. Macy’s has dedicated the last two years to building this private-brand strategy. And, when trimming down its portfolio, Macy’s is looking at which brands “are driving more duplication than needed,” she said. “We’re touching everything within the portfolio and really anchoring it into the new voice of customer,” she explained. At the same time, it is “looking at our portfolio to identify gaps that we were not serving, whether it be from a customer profile standpoint or from an aesthetic standpoint,” Erusha-Hilleque, who was previously a design director at Target, said.Īs far as tweaking existing brands, Erusha-Hilleque likened Macy’s approach to a face lift. This involves adding new brands, giving existing ones makeovers and sunsetting others that no longer resonate with customers.Įmily Erusha-Hilleque, svp of private brands at Macy’s, told Modern Retail that Macy’s already has brands its customers love. Today, Macy’s is taking a three-pronged approach to its private brands. That way, they have more of a say in production and distribution and keep a greater portion of profits. One way a big-box or mall retailer can recoup losses by investing more in brands that they control directly. Macy’s net income fell nearly 18% in its fiscal 2022 year, and its shares are down more than 20% year-to-date. As a department store, Macy’s largely carries discretionary items, and many shoppers right now are shying away from that category to save money or redirect spending to essentials. Macy’s may have additional motivations for building its private brands. The company is betting on its private-brand renovation to win over more customers and get closer to that goal. Back in 2020, Macy’s CEO Jeff Gennette said he wanted private brands to account for 25% of Macy’s sales by 2025. That share used to be higher before the pandemic, at around 20%, a number that Macy’s wants to target once more in the long term. Roughly 16% of Macy’s annual sales in fiscal 2022 came from private brands. Macy’s currently has a robust portfolio of more than 25 private brands, including I.N.C., Alfani, Charter Club and Sun + Stone.
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