Macy's Says Sales of On 34th Are Strong
During the first month following Macy’s launch of its new On 34th assortment of private label apparel, the retailer said sales are exceeding expectations with store officials offering a bullish assessment of the line’s future.
“We believe On 34th has the potential to become one of our biggest private brands,” said Tony Spring, Macy’s president and incoming chief executive officer. “Our team has been thoughtful in both the development and planned rollout of our updated private brand strategy.”
Speaking during the company’s earnings call to discuss second quarter results, Spring said the assortment was built on three pillars: brand stewardship, design with intention and execution with intention, and provide a meaningful value equation.
“From sourcing to marketing to merchandising, the teams have worked together to reflect our customers' wants and needs,” he said. “They have considered life stages to create products and brands that authentically resonate with and capture the hearts of current and prospective customers.”
Having made its debut in July, the On 34th private brand collection has more than 750 SKUs and more than 250 unique styles, designed to be mixed and matched to create more than 1,000 outfits. Prices range from $18.50 to $299.50 with sizes ranging from XXS to 4X and 0 to 26W.
Over the next two years, Spring said Macy’s would be working to refresh or replace all existing brands in its portfolio with plans to introduce four new ones. Notably, over the past year, the retailer refreshed its Women’s I.N.C. assortment, the next phase of which will be unveiled in September.
Positive news about the company’s efforts with its private label mix came the same day Macy’s reported second quarter sales of $5.1 billion, a drop of 8% when compared to the second quarter of 2022. Net loss for the quarter was $22 million compared to net income of $275 million in the same quarter the previous year.
Brick-and-mortar sales for the quarter were off 8% and digital sales were down 10%. Comparable store sales were down 8.2% on an owned basis and off 7.3% on an owned-plus-licensed basis.
Macy’s also revealed the locations of four new small-format locations that are part of the retailer’s effort to bring itself closer to shoppers. Opening this fall, the new stores are the first expansion of the department store’s downsized locations. Initial locations will be in Boston, Las Vegas and San Diego, which follow the recent opening of a smaller footprint store in Highland, Ind.