What: Retailers are rethinking the structure of private brands- from halting operations to revamping the current lines.

Why it is important: Private-label brands are built around customer needs, yet with declining brand loyalty and increased openness to private-label products in the US, huge retailers are finding it difficult to turn profit.

Amazon has closed most of its private brands, and Macy’s, which revamped their private label portfolio with the launching of four new brands, has seen a decline of 20% in sales to 16%. Footlocker, however, has seen success in their private brand with an increase to 11% in apparel sales.

Revolve currently operates 31 private brands which were once not differentiated enough and undercutting each other, but the company has optimised the assortment and the share of private label sales has grown.

The company was able to grow its brand portfolio steadily through its early acquisitions and treat each line as its “own unique, living and breathing thing” since they have elevated prices and aren’t only competing on costs.

Oliver Chen, a senior analyst at Cowen, dictates that the best strategy for retailers is for the brands to be of reasonable price and better quality than third-party suppliers along with a clear reason for existing, as brand awareness and a sense of legitimacy is a big challenge in private label.

Do shoppers still want retailers’ private brands?