Macy’s Gambles on Luxury Line To Boost Profits

Macy’s has announced that it will be diverting funds to its in-house brands in an effort to boost its flailing bottom lines.

TheStreet is reporting that, as part of its rehabilitation initiative, the retailer has introduced or reintroduced a number of other brands, such as On 34th and State of Day. By the end of the year, it intends to debut a collection for men, followed soon after by a new kids’ brand.

However, Macy’s major rethink entails more than just bringing back beloved brands. The mall favorite is also reportedly focusing more on its renowned high-margin luxury items in an effort to draw in clients who have a little more disposable income.

The retailer has announced that it will concentrate its efforts on designer fragrances, which are more reasonably priced than luxury handbags, for example, but nonetheless carry highly sought-after labels like Chanel and Dior.

High-end fragrances from designers like Cartier, Tom Ford, and Creed are already available at some Macy’s stores. However, the company has announced plans to increase the presence of designer fragrances, stating that by the end of 2024, it would have 42 stores carrying its luxury cosmetic items, with a particular emphasis on fragrance.

What’s more, Macy’s will soon provide miniature store-in-store concepts, emulating Kohl’s well-known and prosperous Sephora initiative and Target’s Ulta strategy.

News of this latest effort comes right after the brand launched its first-ever All-Star Week, which was another promotion intended to boost lagging sales. The event ran from Tuesday, July 16, through Tuesday, July 23. Even more special incentives were available to Star Rewards members, including the opportunity to win $20 in Star Money and triple or 10 times the points on particular brands and categories during the “most valuable loyalty event of the year.”

“We are excited to continue Macy’s Summer’s Greatest Hits as we surprise and delight our loyalty customers with the launch of our first-ever All-Star Week,” said Max Magni, the company’s chief customer and digital officer, in a statement accompanying the All-Star Week announcement. “Star Rewards features some of the best loyalty benefits and experiences in retail and during this special member only event, we are showcasing thousands of exclusive savings for our best customers. Whether they are entertaining for a backyard barbeque or buying back to school essentials, we have great deals this summer, and several ways to earn more rewards.”