Advantages and disadvantages of private labels Essay

Advantages and disadvantages of orphic labels - Essay ExampleA private label may be defined as a label that is funny to a specific retailer. According to Weitzs definition, Private-label brands, also called store brands, are products developed by a retailer and available for sale only from that retailer (2004). on that point are many categories of private labels such as, store brands, store sub-brands, umbrella branding, individual brands and exclusive brands.In order to fully discuss private labels, an original company, Macys, has been utilise as an example in this essay. I would like 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 effected 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 perhaps as well known for its annual goodwill Day Pa rade, 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. merge with Federated 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 fade out Broadway Stores and incorporated it into Macys West. The year 2001 saw the acquisition of the Liberty 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 parting included the Memphis and Atlanta Macys became a part of Macys central division. In 2005, Macys acquired whitethorn Department stores and retained its brand name to be sold at the Macys store. Thus, May became a private brand for Macys. This was an important merger 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 buying them out and converting them to the Macys nameplate. By 9th September 2006, Macys will switch approximately 850 stores in United States(http//en.wikipedia.org/wiki/Macys) . The CEO and Chairman of the store is Terry J. Lundgren and the CFO is Karen M. Hoguet. The vice president of Corporate Communications and External Affairs is jam A. Sluzewski (http//www.hoover.com). Macys has seven divisions, the names of which are provided belowMacys EastMacys FloridaMacys MidwestMacys NorthMacys NorthwestMacys South Macys WestThe top compe titors for Macys are Dillards, Inc (DDS), J.C. Penny Corporation and Saks bodied (SKS). The company has a number of subsidiaries and affiliates namely After 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, often a season or two rotter 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,