Macy's ramping up private brand growth
Macy's has big ambitions for four of its strongest exclusive brands.
As part of its newly announced three-year plan, the department store giant said it is committed to a more “focused approach” to its higher-margin private brands business, with plans to build four $1 billion in-house brands. At its investor meeting in New York City, Macy’s identified the four brands as Charter Club, Style & Co., International Concepts and Alfani. The company also said that it is on track for its private brands to make up 25% of sales by 2025.
Macy’s new push comes as other retailers, including Kohl’s, have been expanding their private-label offerings — and not just in apparel. On Wednesday, Target unveiled its latest offering, a “premium” luggage brand called Open Story. It features nearly 40 luggage and accessory items ranging from $19.99 to $179.99, with a lineup that includes backpacks, garment bags, packing cubes and sleek-looking luggage in such stylish colors as violet and cedar.
In line with its plans, Macy’s said it is implementing a new private brand sourcing strategy that is expected to reduce costs and improve speed.