Nearly three weeks after rejecting a $5.8 billion buyout offer, Macy’s is putting faith in its private brands to boost its bottom line.
On Thursday, the department store rolled out State of Day, its second of four private brands it plans to launch by the end of 2025. It debuted the first — an accessory, clothing and shoe brand called On 34th — last summer. State of Day has fewer items than On 34th, with 165 SKUs instead of 750, and includes loungewear and sleepwear like robes, tanks, tees, pajamas, bralettes, pants and nightgowns.
Macy’s has spent years building up its private brands portfolio, which boasts more than 25 brands including I.N.C. and Charter Club. Before the pandemic, private brands accounted for as much as 20% of Macy’s fiscal year sales, according to Macy’s. However, that number dipped to 16% in 2022, alongside other shaky financial results. While Macy’s most recent earnings beat expectations, Macy’s, like other department stores, has dealt with slipping sales for multiple quarters in a row as customers pulled back on discretionary purchases. Macy’s second-quarter losses totaled $22 million, and its net sales for the third quarter dropped 7% year-over-year.
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