StudentShare solutions
Triangle menu

Advantages and disadvantages of private labels - Essay Example

Not dowloaded yet

Extract of sample
Advantages and disadvantages of private labels

A private label may be defined as a label that is unique to a specific retailer. According to Weitz's definition, "Private-label brands, also called store brands, are products developed by a retailer and available for sale only from that retailer (2004)." There 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, Macy's, has been used as an example in this essay. I would like to propose several ideas related to private labels that can help improve Macy's profitability.Macy's was founded by Mr. Rowland Hussey Macy in 1851 and established on Broadway in New York City. In 1896 the store was acquired by Mr. Isidor Strauss and underwent a large expansion during the 1920's and 30's http://en.wikipedia.org/wiki/Macy's).Today, it is perhaps as well known for its annual Thanksgiving 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. merged with Federated Department Stores on 19th December, 1994. Federated merged its Abraham & Straus/Jordan Marsh division with "Macy's East". Federated acquired Woodward & Lothrop/John Wannamaker in 1995. In 1996 Federated purchased and dissolved Broadway Stores and incorporated it into Macy's 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 Macy's West.
Bon-Macy's (Pacific Northwest) and Burdines-Macy's (Florida) were soon named as Macy's Northwest and Macy's Florida respectively. And Macy's Central Division included the Memphis and Atlanta Macy's became a part of Macy's central division.
In 2005, Macy's acquired May Department stores and retained its brand name to be sold at the Macy's store. Thus, May became a private brand for Macy's. This was an important merger for Macy's since Famous-Barr, Filene's, Foley's, Hecht's, The Jones Store, Kaufmann's, L.S. Ayres, Meier & Frank, Robinsons-May, and Strawbridge's were all included in this acquisition.
Later the same year Macy's announced that Marshall Field's would be acquired by Macy's and would become the company's North Division. Federated Department Stores has thus successfully eliminated much of its competition by buying them out and converting them to the Macy's nameplate. By 9th September 2006, Macy's will have approximately 850 stores in United States(http://en.wikipedia.org/wiki/Macy's) .
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 James A. Sluzewski (http://www.hoover.com).
Macy's has seven divisions, the names of which are provided below;
Macy's East
Macy's Florida
Macy's Midwest
Macy's North
Macy's Northwest
Macy's South
Macy's West
The top competitors for Macy's are Dillards, Inc (DDS), J.C. Penny Corporation and Saks Incorporated (SKS). The company has a number of subsidiaries and affiliates; namely After Hours Formalwear, Bloomingdale's, Inc., David's Bridal, Inc., and the various regional divisions of Macy's. 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 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, ...Show more

Summary

A private label may be defined as a label that is unique to a specific retailer. According to Weitz's definition, "Private-label brands, also called store brands, are products developed by a retailer and available for sale only from that retailer (2004)." …
Author : morargregory
Advantages and disadvantages of private labels essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Advantages and disadvantages of private labels"
with a personal 20% discount.
Grab the best paper

Related Essays

Advantages and disadvantages of outsourcing
Outsourcing has become a major business in today’s world.Most of the big companies outsource their work which is not their core operation. To understand outsourcing one has to know what does outsourcing means. Outsourcing can be defined as contracting out a work which is not the core function of the business.
9 pages (2250 words) Essay
Outsourcing: reasons, advantages and disadvantages
The realm of strategic management aids in specifying an organisation’s mission, vision as well as objectives and in creating various policies and plans that are often in terms of programs and projects. These programs and projects are designed to meet objectives and need a commitment of resources on the part of the management.
6 pages (1500 words) Essay
Assistive Technology: Advantages and Disadvantages
The field of education is no different; innovative technologies have made their way into the classrooms and other modes of education that are being followed by the academicians in the prevailing times. Assistive technologies are also counted amongst these inventions of the modern era since they facilitate the acquisition of education by students who have disabilities.
3 pages (750 words) Essay
Recommendation: its advantages and disadvantages
These factors will reduce the production capacity of the asset as compared to when it was still new. Therefore, for the company to take care of these decreases, it has to calculate the depreciation value of the asset. Depreciation is therefore calculated using the estimated remaining useful life of the asset and the initial cost of the asset.
4 pages (1000 words) Essay
Luxury e-commerce advantages & disadvantages
People living in highly modernized system has adopted many quick influences like e-commerce or luxury business (Okonkwo, 2007). This influence is from globalization which has brought changes in the lifestyle and in people’s buying and selling modes. Luxury is what stands out firm in this modern system; it is something which has centered people in between desires and modernism (Okonkwo, 2007).
9 pages (2250 words) Essay
Advantages and disadvantages of internet
Accordingly, there have been several situations where kids have been persuaded to meet people whom they have chatted with online. Whether searching through the Web, looking at newsgroups,
1 pages (250 words) Essay
Advantages/disadvantages of online databases
Using online databases in search for a specific topic or article is very convenient and time saving (Vishala & Bhandi, 2009; Lim, Hsiung, & Hales, 2006; Sathe, Grady, & Giuse, 2002). Basically, the use of
4 pages (1000 words) Essay
ADVANTAGES AND DISADVANTAGES OF HOMOSEXUALS
Statistics have shown that same-sex couples who are legally married have lower divorce rates compared to opposite-sex pairs. This
3 pages (750 words) Essay
Advantages & Disadvantages of JavaScript
JavaScript is a dynamic form of computer language which is used in the purpose of programming. JavaScript has emerged as a leading language that has been used frequently because of its feasibility to target audience. JavaScript had reached a new level of popularity after its adoption from Microsoft as a diverse language for scripting on client side
2 pages (500 words) Essay
Advantages and Disadvantages of Monster
All the same, there are those that are actually real. The challenge is determining whether they exist or not, and this requires firm subscription to the different available religious
4 pages (1000 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation