
It's one thing if baby boomers who've been Martha Stewart fans for years embrace her new line of products being rolled out exclusively at Macy's stores.
But when a third of the brides who registered at the department store chain in July chose Ms. Stewart's intricately layered bedding ensembles, exquisitely coordinated towels and clever kitchen gadgets, that gives officials hope the new brand is reaching a younger audience, too.
"It's really encompassing a wide range of customers," said Rick Deverts, regional merchandise manager for Macy's home department, as he lead a tour yesterday through the highlights of Ms. Stewart's new 2,000-piece line on display at the chain's Ross Park Mall store.
As usual, Ms. Stewart is on top of the latest trend with her most recent business venture. The launch, which is the biggest brand introduction in the history of now-bigger-than-ever Macy's, comes as retailers are rapidly adopting, birthing and even abandoning brand names to set themselves apart.
Brand exclusivity was seen as one of the great lessons of the department store sales slide of years past. Critics noted that all too often competitors carried the same brands and the same styles. Too often consumers either looked for the cheapest shirt or went into the mall in search of a specialty store offering something different.
Many thought Macy's came out on top of rival May Department Stores, which it acquired two years ago, because it learned the lesson of carrying exclusive lines before the other guy did.
Lately the trend hasn't been just about adding private label brands, those in-house lines that tend to be more profitable for retailers because they're not sharing the proceeds with another company. Of particular interest are brands that, like the new Martha Stewart line, carry a widely recognized name.
Such exclusive lines ride the fast track to consumer acceptance without requiring months or years of building an identity.
As Dick's Sporting Goods Chairman Edward Stack explained to an analyst this week, so-called "private brands" are more recognizable than "private label brands." For example, a recent licensing deal to use the Field & Stream brand on an expanded outdoor line should pay off quickly for the Findlay sporting goods chain because consumers will recognize the name.
Dick's also has a deal to be the exclusive retailer for baseball products carrying the established Adidas name and Mr. Stack confirmed his team is scouting for more opportunities. "We are looking at a couple of other ones," he said, declining to give more detail.
Next spring, J.C. Penney is planning its largest ever brand launch -- a new exclusive line called American Living being done in conjunction with Polo Ralph Lauren that will involve clothing, home goods and accessories. Earlier brand introductions brought in names such as Chris Madden and Nicole Miller.
Next month, Kohl's should roll out its new Simply Vera by Vera Wang and Food Network lines, following launches earlier this year of Tony Hawk shoes, Elle women's apparel, Casa Cristina home furnishings line and Daisy Fuentes collections.
Even Bon-Ton Stores, a smaller department store operator based in York, got in on the act earlier this year announcing an exclusive KN Karen Neuburger line of home goods. Retailers' push to carry exclusive brands has put pressure on vendors, many of whom could once count on supplying the same popular lines to competing stores.
Polo Ralph Lauren, for one, has adapted by moving on several fronts. In addition to the American Living brand planned exclusively for Penney's, the company this year launched Chaps Home with Kohl's. Meanwhile, its namesake brand is still found in Macy's stores and the company has opened more of its own specialty stores.
Liz Claiborne Inc. created two lines for Penney -- Liz & Co. as well as Concepts by Claiborne -- that might help offset reduced orders from traditional department store customers.
Still, Liz Claiborne is considering divesting a number of brands, including Dana Buchman, Ellen Tracy, Sigrid Olsen and Tint. The industry has already seen a number of brands changing hands among various players.
Macy's, which trimmed a number of private label lines after acquiring Kaufmann's parent May, might even consider becoming a brand buyer. "Obviously, it would be wrong of us to ignore what's happening," said Karen Hoguet, the retailer's chief financial officer, in a recent conference call to discuss earnings.
For the next few weeks, the department store's attention will be focused on the $35.99 sets of Euro pillows, the $24.99 stainless steel cocktail shakers and the $9.99 sugar cookie mixes that are all part of the new Martha Stewart Collection. A national advertising campaign is scheduled to launch in September.
Mr. Deverts hasn't had questions yet from customers confused by the connection with Kmart, where the home celebrity has had a line of merchandise for years -- although sales declined there in the second quarter.
Macy's officials hope consumers find something new in their collection, which draws from styles in Ms. Stewart's home and personal interests.
The leaf green towels, for example, are the celebrity's favorite color -- and meet her exacting specifications. Mr. Deverts said Macy's had to try more than once to get the absorbency right. "It's truly a collaboration."