What: Macy’s is prioritising its private brand portfolio to grow the overall business and capture market share by offering assortments that build style credibility at compelling prices.

Why is it important: Leading the way in the development of well-designed and intensely marketed private brands is Target. After embarking on a private label reboot in 2016. Target now boasts 48 such brands, across apparel, home, consumer goods, and grocery. They brought in $30 billion in 2021, about $6 billion more than Macy's as a whole did. Macy's, who said they would revamp their own brands, has turned to Target veterans. Macy's nameplate (not counting its Bloomingdale's) runs 24 private labels across categories, representing 15% to 20% of its volume; the retailer doesn't disclose their revenue.

In 2020, Macy's unveiled its Polaris turnaround plan, and the goal was for its INC International Concepts, Alfani, Style & Co and Charter Club apparel lines to be well on their way to becoming a billion-dollar brand — to account for 25% of sales by 2025. Since then, with its turnaround resumed after getting interrupted by the pandemic, Macy's has introduced new labels, including ‘And Now This’ women's apparel, and Oake bedding.

Macy’s recently contracted with Brand Love Lab, run by Nadine Steklenski and Noria Morales, two executives instrumental in Target's past brand design efforts. Last week, Emily Erusha-Hilleque, was hired to join Macy's own ranks.

While Target customers can buy name brands across categories, including Apple, Levi's and Lego and all manner of groceries, beauty and household essentials, its apparel and home goods are dominated by its private labels. By contrast, Macy's is in the business of being an exceptional distributor of third-party brands.

With some brands pulling back from department stores, Macy's may have an opportunity to fill the market niche and literal store space left behind. Rather than mimicking Target, they will tuck under Nordstrom. Slick new brands won't matter in a sea of clutter, with no sign of intelligent life. Macy’s has up their game in basic retail blocking and tackling to have anything matter.

Macy’s prioritizes its private brands