Carol Spieckerman

BrainTrust Query: It Takes More Than Exclusive Lines

March 12, 2010

FROM RETAILWIRE:
In a Reuters piece that appeared on March 2, J.C. Penney CEO Myron Ullman said, "Department stores must keep ramping up exclusive lines of clothing and accessories if they are to win market share from rivals and thrive in the still sluggish U.S. consumer spending environment." To what degree do you think exclusive labels are helping department stores differentiate themselves?      [more...]

Ted, I couldn't agree more. Exclusive lines have been portrayed as the ticket to department store salvation for far too long even as Target, Walmart and even dollar stores grab more exclusives through direct brand deals, licensing arrangements and good ol' private label. We are entering a brand agnostic era and department stores need to get in touch with that. The fact is, shoppers not only don't always know a private label when they see one, increasingly, they don't care one way or the other.

Penney's numbers may be on the uptick; however, every addition to their brand portfolio (and Macy's too) leaves me completely baffled. These are brands that no doubt have a great story when displayed in a showroom at contract time but that end up looking like an undifferentiated mess on the floor, particularly post-markdown (which for Penney's is often week one). I'm preparing a blog posting on John Paul Gaultier's collection at Target; one that was inspired by various "muses" and that comes off wonderfully on the Target website. In store? The muses blur into messes as everything gets hung together on plastic hangers in one big, mismatched presentation. Such great inspiration...getting lost in translation.

It's time for department stores to widen the gap between themselves and discounters and exclusive branding obviously is not the differentiation vehicle. Service, connectivity and excitement are the big opportunities. Shoppers lead fast-paced, constantly-connected, exciting lives outside of the store. I would posit that they don't want or need the shopping environment to be an "oasis" (as the ideal state is often described) so much as a carefully edited continuation. Any takers?