Macy’s Unveils Its New Private Brand
After hinting at it for months, Macy’s on Wednesday unveiled its new private brand — a collection of women’s apparel and accessories called “On 34th.”
Executives characterized On 34th as offering classics, wardrobe staples and special pieces, and touted the fact that the collection is “designed for women and by women, for the modern life.”
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Macy’s is in the process of overhauling its stable of 25 private brands, which account for 16 percent of the retailer’s volume. At one time, private brands accounted for 20 percent of Macy’s volume but in recent seasons executives have acknowledged softening in certain labels, along with softness seen in its women’s sportswear overall. They now say that “reimagining” the portfolio — involving getting them more “customer centric,” modernized and differentiated from each other — could get private brands back to or above that 20 percent level. Macy’s also recently reduced its supplier base for private brands by 50 percent.
In May 2022, Gennette disclosed the private brand strategy, saying, “Frankly with our private brands, some are super hot, some are tired. This will be a multiyear journey. We want to move the business to north of 20 percent.”
On 34th is the first of four new brands that will be introduced by Macy’s as part of the overhaul or “reimagination” of the private brand portfolio. Next up, a “rest wear” brand will be introduced in spring 2024. While coining the term “rest wear,” Macy’s executives, for now at least, are keeping under wraps what kinds of styles this category will offer.
Some On 34th styles are already online at macys.com, though officially the launch happens Aug. 17. In addition to being merchandised online, all Macy’s stores will sell the new collection, with all of its categories merchandised together in designated On 34th shops. On 34th shoes are seen launching in spring 2024.
“Macy’s has a rich history of developing private brands,” Jeff Gennette, Macy’s Inc. chairman and chief executive officer, said Wednesday at a press conference introducing On 34th to media and retail analysts, held at Macy’s Herald Square flagship, which is located on 34th Street. Dozens of Macy’s Inc. top brass, senior merchants and private brand designers were also present for the unveiling, underscoring the significance the retailer places on its private brand program and its newest in-house collection.
Gennette said On 34th is distinguished from other Macy’s private brands by its “versatility of content, fit, outfitting and higher style.”
“We have spent the last two years listening to customers and creating a brand that reflects how women want to dress for modern life,” Nata Dvir, Macy’s chief merchandising officer, said 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. We are really listening to our customer rather than assuming what the customer wants.”
Dvir, wearing a tailored black blazer over a white long-sleeve bodysuit and wide-leg cargo jeans — all from On 34th — told WWD that the two-year process started with extensive research that determined women were most concerned about fit, quality and value. “They deserved better [from Macy’s],” Dvir said. She noted that typically Macy’s private brands operate on nine-month product design and development cycles. On 34th naturally took longer being a startup with much preliminary research required, she noted.
For Macy’s, Kohl’s, Target, JCPenney and other department stores and mass merchants, private brands are critical because when they resonate with shoppers, they bring in higher margins than market brands. They can be perceived as offering greater value and lower prices than market brands and can provide an air of exclusivity. Private brands are most widely accepted when shoppers are unaware or don’t care that they are store-owned and developed.
The hope is that On 34th and other private brand changes give a lift to Macy’s business, which has recently seen waning consumer demand. Macy’s Inc., which includes Macy’s, Bloomingdale’s and Bluemercury, reported first-quarter top- and bottom-line declines.
Said Emily Erusha-Hilleque, Macy’s senior vice president of private brands, “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.”
As a large collection, On 34th would be expected to generate significant volume. The collection has more than 750 stock keeping units and 250-plus unique styles, designed to be mixed and matched and create more than 1,000 outfits. Prices range from $18.50 to $299.50 and sizing ranges from XXS to 4X and 0 to 26W.
Executives said that to develop On 34th, Macy’s extensive research entailed more than 100,000 online surveys, 35 days of digital community engagement and hundreds of hours of in-store fit research and shop-alongs. The research, Macy’s executives said, took a deep dive into how women want to dress and what they need for their busy, modern lifestyles. One big need is for versatility, meaning styles that can be worn for different occasions, like for a day at the office and for a special event that night. Macy’s claimed the new collection offers that.
The On 34th collection is also inclusive, Macy’s indicated, meaning it’s designed to “accentuate and flatter across all body types” along with having a wide size range. Additionally, it’s designed to strike a balance between classic and contemporary.
Some of the larger volume private brands at Macy’s are INC, Charter Club, Style & Co., Hotel and Alfani.
As part of the reimagining of private brands, INC’s image, for example, has been sharpened to be more fashion-forward, evening-oriented and sexier, though there are casual day and office appropriate pieces included. INC targets the 50something-year-old women, while On 34th targets 30- to 50-year-olds.
Dvir declined to project On 34th’s potential volume but she did say that the new brand is being bought to be “impactful” online and on the selling floors. Deliveries will be monthly, for steady newness, she said.
Strengthening private brands is one of the “pillars” for growth of Macy’s Inc.’s Polaris strategy, which has entailed cost cutting, department store closures, focusing on digital growth, personalization and the loyalty program; expanding assortments, and opening smaller-scale off-mall stores such as Bloomie’s and Market by Macy’s formats.
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