Dive Brief:
- One of Macy’s newer private labels, On 34th, has released a subcollection in partnership with costume designer Alix Friedberg.
- Inspired by the Apple TV+ “Palm Royale” series, where Friedberg heads up costume design, the collection of 19 apparel styles is available online and at some Macy’s stores, the department store said Monday.
- The dresses, tops, skirts and match sets, plus scarves, jewelry and handbags, range in size from XXS to XXL. Apparel prices range from $49.50 to $159.50, with accessories priced from $24.50 to $99.50.
Dive Insight:
Macy’s unveiled On 34th two years ago, part of the department store’s effort to revamp its private label operations by overhauling existing lines and developing new ones. The owned brand was also the first created by the Target veterans who jumped to Macy’s around that time.
Though some of Target’s private labels are faltering right now, its owned-brand strategy has been a powerhouse, with several notching $1 billion in annual revenue in their own right. In 2023, Macy’s contracted with a firm led by former Target designers and also hired Emily Erusha-Hilleque, who had led many Target private labels and designer collaborations during a 20-year merchandising career there.
“The launch of On 34th marked an important milestone in Macy’s journey to elevate and reimagine the company’s private brand portfolio, all while developing unique and relevant product design that illustrates multiple points of inspiration and customer data,” the company said Monday.
For this collab in particular, windows at Macy’s Herald Square flagship have “immersive displays featuring key looks from the collection, inspired by Palm Royale’s playful sophistication, to invite passersby into a world of sunny color and bold style.” Fashion photographer Ben Watts shot a marketing campaign with model Georgia Fowler, per Monday’s press release.
Despite a long-term effort and the assist from private label hotshots, Macy’s execution hasn’t been smooth sailing, with the pandemic forcing a delay, and now tariffs disrupting it somewhat. Private labels generally provide higher margins, but new levies from the Trump administration threaten to dilute that. At fiscal year’s end, about one-fifth of Macy’s Inc. merchandising came from China, with about 18% of national brands from there. About 27% of private brands, which represent a minority of Macy’s sales, is from China, down from 32% the previous year and 50%-plus pre-pandemic, CEO Tony Spring told analysts in May.
“We are confident that we can continue to diversify countries of origin for both our private and national brands,” he said. “With the recent announcement of these tariffs, we’ve renegotiated orders with suppliers, we’ve canceled or delayed orders where the value proposition is just not where it needs to be.”