Macy’s Kicks off Private Label Transformation Strategy with First New Brand
Macy’s has unveiled the first of four new private label brands it plans to roll out through 2025 as the department store reimagines its private label offerings. The new brand, called On 34th in homage to the location of the brand’s historic NYC flagship, features apparel and accessories “designed for women, by women.”
With On 34th and the three other new brands it plans to introduce, Macy’s is aiming to make its private label offerings more “customer-centric,” the company said in a statement. Macy’s conducted extensive research over the last two years — including 100,000 online surveys, 35 days of digital community engagement and hundreds of hours of in-store fit research and shop-alongs — to develop a brand that would appeal to modern women.
The On 34th collection features wardrobe staples as well as special pieces like a sequin skirt and will be available at stores, online and through the Macy’s app starting on Aug. 17, 2023, with shoes set to launch in spring 2024. The collection has more than 750 SKUs, with prices ranging from $18.50 to $299.50 and sizing ranges from XXS to 4X.
“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 Nata Dvir, Chief Merchandising Officer at Macy’s in a statement. “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 ‘growth vectors,’ we have the opportunity to reinforce our legacy while evolving and refreshing our portfolio.”
The new brand arrives on shelves at a challenging time for the company — Macy’s cut its full-year outlook last month after seeing consumers pull back on purchases in the first half of the year. Macy’s private brand portfolio represented roughly 16% of brand sales in fiscal 2022; historically it has been as high as approximately 20%, a level the company said it believes can be achieved longer-term. Along with introducing four new brands to the mix, Macy’s also said it will refresh or replace other brands in the portfolio over the course of the next two years.
“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,” said Emily Erusha-Hilleque, SVP of Private Brands at Macy’s in a statement. “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.”
