Target (TGT) -) is a leading authority on how to take an average retail business and transform it into a mega powerhouse. When turning a retail chain into a true competitor with the likes of Walmart (WMT) -) and Amazon (AMZN) -), other retailers have taken notes on what Target did to do just that.
It’s no secret that other retail chains have struggled at figuring out the correct strategy to staying relevant with customers. Retail chain Sears built a massive business and was a leading authority creating its private label Craftsman to be a top brand. However, Sears faltered through closing stores and selling off assets, including its beloved Craftsman brand and Kenmore appliance line.
Macy’s (M) -) has been on the struggle bus as well, and it has made some changes in its leadership to hopefully help drive the business in the right direction. Recently, Macy’s brought on Tony Spring, formerly with Bloomingdales, as the next CEO of Macy’s. Macy’s is expected to make some moves now post pandemic that should shape the future for the brand.
One key move was Macy’s hiring Emily Erusha-Hilleque formerly with Target in merchandising and bringing her on as the senior vice president of private brands according to Retail Dive.
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Macy’s Transformation
The retail chain is making changes that appear to be a page right out of Target’s strategy playbook. Macy’s introduced its new private label brand On 34th as a new brand ‘for women, by women.’ This is the first new brand by Macy’s in its efforts to transform its company.
“Macy’s is thrilled to officially introduce our newest private brand, On 34th. We have spent the last two years listening to customers and creating a brand that reflects how women want to dress for modern life,” said Macy’s Chief Merchandising Officer, Nata Dvir.
“The heartbeat and voice of the customer is infused in all that we do and we know that our customer loves great brands that deliver on our promise of quality, style and value. Through our private brand reimagination, one of our five Macy’s, Inc. growth vectors, we have the opportunity to reinforce our legacy while evolving and refreshing our portfolio.”
“On 34th was created with inspirational and modern design, informed by the voice of the customer, and built for real life. This new brand is designed by women for women who run their world, with confidence and joy,” says Erusha-Hilleque.
“The launch of On 34th is an important milestone in Macy’s journey to elevate and reimagine our private brand portfolio which is designed with intention and executed with attention. We are developing unique and relevant product design that is distinctively aligned to brand DNA and infused with multiple points of inspiration, data, and the intuition of a talented team. All in service of fostering brand love for Macy’s.”
Macy’s new brand development is based on three factors: brand stewardship, design with intention and executed with attention and a meaningful value equation. The new brand On 34th is the first of four new private label brands coming to Macys.
Macy’s On 34th Launch
The new private label by Macy’s On 34th has over 750 different SKUs and 250 different styles. These designs are made to be interchangeable so shoppers can mix and max to create their own look to stay competitive and to continue to offer luxury pricing ranges from $18.50 up to $300. The new apparel comes in sizes ranging from XXS to 4X and 0 to 26W. On 34th plans to bring shoes to the collection starting in 2024.
Target has more than 45 private label brands and it has successfully transformed these brands into the powerhouse brands that create major profitability over other brands brought into the retail chain. The profitability of the private label brands has a proven track record for Target, as at least 10 of the private label brands by Target are worth $1 billion, according to Retail Dive.
The new private label brand name is a nod to the retailer’s famous store in New York City, which has been a flagship location for the brand and most notably for the Macy’s Thanksgiving Day Parade which ends in front of the building in Herald Square on 34th Street.
