Macy's and the Capsule Collections

April 18 2012

Macys' is making some upscale and perhaps curious choices in their selection of limited collection designers for their Impulse shops. First up was Karl Lagerfeld, then CFDA winner doo.ri, and now Alberta Ferretti. I would say that in these designers are connected in that they are all upscale, kind of dressy, refined, and polished. I was very curious about the Lagerfeld collection and hightailed it over to Macy's very soon after its release into stores only to find that hundreds of pieces remained on the racks at the Herald Square store. Hmmm. So I queried the sales staff at length, who said that the collection did not sell well at all. They said that neither the design nor fabrication worked. When I went back some weeks later the collection was in serious markdown.

Why no ka-ching ka-ching? And why these designers? What is the decision behind the choice to associate the egalitarian Macy's brand with designers who are upscale (that we understand) and slightly unknown by main street USA (doo.ri and Ferretti)? Limited edition capsule collections are meant to reinforce a store's prestige, help the retailer gain traction with new audiences (consumers who might not normally connect with Macy's, for example), and to create a sense of urgency in the buying experience, so that it drives any curious and/or interested traffic to the brick and mortar stores and to the website. 

Then there is Macy's association with the new Fashion Star show. Ack! The fashion on the show is awful, but it's a great PR move, and is definitely driving sales. According to Women’s Wear Daily, the three retailers associated with the store are really pleased with sales as the items from the show are selling out. So here we are again in the realm of high/low, which any readers of my blog know is one of my major interests. What's working better for Macy's? Lagerfeld (advertised and promoted traditionally) or Miss No-Name Designer (with millions of viewers and panelists like Jessica Simpson and Nicole Ritchie)? I would LOVE to see those sales numbers!

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