Macy’s Has A Lofty Goal For Its Private-Label Business. Here’s Why
Macy’s aims to grow its private-label and private-brands business to represent 40 percent of the retailer’s overall merchandise mix, according to CEO Jeff Gennette. The lofty goal is part of Macy’s overall turnaround plans, to get back to positive same-store sales. As of last June, the amount of private and exclusive brands at Macy’s was about 29 percent of total inventory. That includes some of its best-selling lines: INC and Alfani for women’s and men’s fashion, and the Martha Stewart collection for the home. Then, less than a year ago, Molly Langenstein’s role at Macy’s shifted so that she would be able to spearhead the department store chain’s bigger push of private labels. Divisions were streamlined to focus on “lifestyles,” excess inventory was increasingly chopped from stores and everyone at Macy’s set their eyes on a 40 percent threshold. “I can tell you with certainty that we are moving faster,” Langenstein told CNBC at the ShopTalk conference in Las Vegas. “This is a hidden gem of our organization that we should be using in a more intentional way.” Read more at CNBC.