Macy's Continues Refreshing Private Brands
Macy’s shoppers have “responded well” to the department store’s efforts to update its private brand apparel assortment, said company Chairman and CEO Tony Spring, who noted the retailer’s latest offerings include elevated fashion and quality.
“As we lap last year's private brand exits, we have been introducing new market and private brands that more closely align with customer demand,” he said. “Continuing to build on the momentum in this important category is a top priority, and we are making the appropriate investments to support growth.”
Among the newer private label apparel offerings now at Macy’s is its State of Day collection, which includes an assortment of restwear, sleepwear, and innerwear for women. The new line features various products including pajama sets and separates, bras and bralettes, underwear, restwear, nightgowns, and sleepshirts.
According to the department store, all items are made from soft and luxurious fabrics that are easy to clean, comfortable, and size-inclusive.
While Spring did not offer specifics on the success of any of Macy’s private label apparel brands during the retailer’s second-quarter investor conference call, he noted the department store is also taking steps to address weaknesses in other categories including men’s apparel, handbags, and home.
“In men's apparel, contemporary has been a bright spot, and we believe there's an opportunity for growth in this category,” he said. “Earlier this month (August), we soft-launched a new private brand targeting the under 40 consumers to support our growth aspirations. Within handbags, we are continuing to diversify our brand portfolio.
In its home assortment, Spring said the retailer is strengthening its holiday gift-giving assortment ahead of what he said will be a broad private brand reimagination next year. Specifics on the reimagination were not offered.
Macy’s efforts to freshen its private label offerings come as the department store works through several projects to rejuvenate sales. During the recently completed second quarter, the company reported net sales of $4.9 billion, a decrease of 3.8% from the comparable quarter the previous year. Comparable store sales were down 4% on an owned basis and down 3.3% on an owned-plus-licensed-plus-marketplace basis.
Company officials said they were also encouraged by the performance of its First 50 stores under the Macy’s nameplate. These locations, which had comparable store growth of 1% in the second quarter, are part of the department store’s A Bold New Chapter initiative that seeks to enhance the department store’s in-store shopping experience.
“These locations also had higher traffic and conversion relative to other go-forward locations,” Spring said. And all merchandise categories outperformed with shoes, handbags, men's and kids' apparel, as well as women's ready-to-wear, registering the most improvement. Two categories where we've been struggling more broadly, men's and handbags, were among the most significant relative outperformers, which is exciting and could serve as a broader unlock.”
