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Dive Brief:
- Macy’s has relaunched Epic Threads, a private label kids apparel and accessories line, the company said in a Tuesday announcement.
- The collection features over 200 pieces including T-shirts, pants, dresses and hoodies ranging in price from $10 to $50 in sizes from 2T to 20. It is now available in Macy’s stores nationwide and online.
- The assortment’s pieces are made of fabrics that are designed for easy care and durability. All apparel and accessories are meant to mix and match. Macy’s said it surveyed kids to help inform the collection’s style.
Dive Insight:
Macy’s relaunch of Epic Threads is part of an ongoing private label revamp.
Macy's plans to refresh or replace its entire private label portfolio by 2025, the company said in its 2023 year-end report. That big-picture strategy started last summer with the launch of women’s apparel brand On 34th. Another brand followed in February with the introduction of State of Day, a new women's lounge and sleepwear label. CEO Tony Spring in May said the company plans to launch a new private label contemporary men's brand later this year, and another kids brand, First Impressions, this summer.
Image courtesy of Business Wire
Macy’s said its private labels generate higher margins and profits compared to the market brands it offers. In fiscal year 2023, private brands represented 15% of Macy’s sales. However, despite that momentum, Spring said on a May call with analysts that the retailer expects “private brand sales volumes to remain depressed relative to historic levels and to realize improvements beginning later in the year.”
Epic Threads’ relaunch comes just a day after the retailer ended talks with Arkhouse Management and Brigade Capital Management regarding a $6.9 billion takeover bid. An initial $5.8 billion takeover offer from Arkhouse and Brigade first surfaced in December. Macy’s initially rejected it in January.
In a statement announcing the end of takeover talks, Macy’s said it’s turning its focus to the pillars of its “A Bold New Chapter” strategy, which include accelerating luxury growth and simplifying and modernizing its end-to-end operations.
Earlier this year, Macy’s also confirmed plans to close 150 underperforming stores over the next three years. Those stores generate less than 10% of sales but occupy 25% of the banner’s square footage, Spring said in March. Despite the uncertain consumer environment, Macy’s said it has seen progress within its 50 highest performing stores, which are outperforming the rest of its go-forward store fleet, which should reach about 350 locations under the company’s namesake banner.
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Nate Delesline III, Khareem Sudlow
