Advantages and disadvantages of private labels Essay

Advantages and disadvantages of tete-a-tete labels - Essay ExampleA private label may be defined as a label that is unique to a specific retailer. According to Weitzs definition, Private-label betrays, also called retentiveness brands, are products developed by a retailer and available for sale only from that retailer (2004). at that place are many categories of private labels such as, store brands, store sub-brands, umbrella branding, individual brands and exclusive brands.In lay to fully discuss private labels, an original company, Macys, has been used as an example in this essay. I would akin to propose several ideas related to private labels that can help improve Macys profitability.Macys was founded by Mr. Rowland Hussey Macy in 1851 and set up on Broadway in New York City. In 1896 the store was acquired by Mr. Isidor Strauss and underwent a large expansion during the 1920s and 30s http//en.wikipedia.org/wiki/Macys).Today, it is mayhap as well known for its annual Thanksg iving Day Parade, as its chain of large American department stores. Its flagship store is located in New York City, and currently holds the record for largest department store building.R.H. Macy & Co. coordinated with unify Department Stores on 19th December, 1994. Federated merged its Abraham & Straus/Jordan Marsh division with Macys East. Federated acquired Woodward & Lothrop/John Wannamaker in 1995. In 1996 Federated purchased and dissolved Broadway Stores and incorporated it into Macys westmost. The year 2001 saw the acquisition of the emancipation House chain which had departments and stores in Hawaii and Guam. It was converted into Macys West. Bon-Macys (Pacific Northwest) and Burdines-Macys (Florida) were soon named as Macys Northwest and Macys Florida respectively. And Macys Central divergence included the Memphis and Atlanta Macys became a part of Macys central division. In 2005, Macys acquired May Department stores and retained its brand name to be sold at the Macys s tore. Thus, May became a private brand for Macys. This was an important union for Macys since Famous-Barr, Filenes, Foleys, Hechts, The Jones Store, Kaufmanns, L.S. Ayres, Meier & Frank, Robinsons-May, and Strawbridges were all included in this acquisition. Later the same year Macys announced that Marshall Fields would be acquired by Macys and would become the companys North Division. Federated Department Stores has thus successfully eliminated much of its competition by get them out and converting them to the Macys nameplate. By 9th September 2006, Macys will have approximately 850 stores in United States(http//en.wikipedia.org/wiki/Macys) . The CEO and moderate of the store is Terry J. Lundgren and the CFO is Karen M. Hoguet. The vice president of Corporate Communications and External Affairs is throng A. Sluzewski (http//www.hoover.com). Macys has seven divisions, the names of which are provided belowMacys EastMacys FloridaMacys MidwestMacys NorthMacys NorthwestMacys South Mac ys WestThe top competitors for Macys are Dillards, Inc (DDS), J.C. Penny Corporation and Saks Incorporated (SKS). The company has a number of subsidiaries and affiliates namely afterward Hours Formalwear, Bloomingdales, Inc., Davids Bridal, Inc., and the various regional divisions of Macys. The company had 232,000 employees in the year 2006 and had a growth rate of 43.30% and (http//biz.yahoo.com/ic/12/12493.html). The annual revenue of the store is 2.5 billion U.S. dollars (http//www.fashioncareerexpo.com/show_co_profile_and_jobs.cfmemployer_id=87&show_id=11).Historically, private labels were inexpensive copies of original designer clothes, a lot a season or two behind runway fashion. In addition, most of the private labels had a homely feeling to them. However, this is not the case anymore. Trends have drastically changed in the past few years. Whereas private labels were once sold at the back section of departmental stores,