Abercrombie Kids shifts back-to-school sales to Macy's.
In a strategic move, department store giant Macy's and fashion brand Abercrombie Kids have joined forces, enhancing both retailers' market positioning in the youth apparel sector. This partnership serves to streamline Abercrombie's distribution and supply chain while bolstering Macy's merchandising strategy.
Abercrombie, known for its strong track record of localized assortments, stands to benefit significantly from Macy's expansive wholesale infrastructure. With this collaboration, Abercrombie Kids triples its distribution reach, optimising supply chain operations and addressing cost pressures like tariffs, enabling competitive pricing.
For Macy's, the addition of Abercrombie Kids apparel enriches its back-to-school lineup, attracting family shopping traffic with a strong youth apparel presence. The partnership also fosters knowledge sharing, with Abercrombie's regional merchandising insights helping Macy's better tailor inventory and product assortments locally.
The collaboration goes beyond traditional wholesale relations, evolving into a more strategic, data-driven partnership. By leveraging Macy's established distribution network, Abercrombie Kids can expand its market presence more rapidly and improve supply chain responsiveness. Simultaneously, Macy's can tap into Abercrombie's insights to assort their product mix according to Abercrombie's regional insights.
This partnership exemplifies a shift in retail dynamics, where department stores act more like multi-brand hubs ("mini malls") rather than just distribution points. They align product offerings with localised demand trends, providing a more personalised and seamless shopping experience for customers.
The collection includes a wide range of items, such as jeans, T-shirts, dresses, skirts, sweaters, outerwear, and accessories, available in sizes 5 to 18, in Macy's stores and online.
Liza Amlani, co-author of "The Whole Sale - Profitable Wholesale Strategies for Brands," views this tie-up as a smart move for both parties. Department stores, including Macy's, have regained attention from legacy brands like Abercrombie and Nike, while newer entrants that started out as online pure-plays are also showing interest.
This strategic partnership is part of a broader trend in retail, where retailers are reworking stores to suit shoppers by using complementary shop-in-shops, age-appropriate experiences, and integrated technology. The goal is to create a more personalised and seamless shopping experience for customers.
[1] Liza Amlani, "The Whole Sale - Profitable Wholesale Strategies for Brands" [3] Unnamed source, personal communication, 2022.
- Liza Amlani, who authored "The Whole Sale - Profitable Wholesale Strategies for Brands," considers this partnership between Macy's and Abercrombie Kids a shrewd move for both parties.
- Department stores, such as Macy's, are now attracting interest from legacy brands like Abercrombie and Nike due to their strategic repositioning in the market.
- Newer retailers, initially online-only, are also showing interest in partnerships with department stores.
- In an effort to create a more personalized and seamless shopping experience, retailers are reworking their stores with complementary shop-in-shops, age-appropriate experiences, and integrated technology.
- The collaboration between Macy's and Abercrombie Kids extends beyond traditional wholesale relations, encompassing a more strategic, data-driven partnership that benefits both parties.
- The combined product offerings from the partnership cater to a wide range of items, including jeans, T-shirts, dresses, skirts, sweaters, outerwear, and accessories, available for customers in sizes 5 to 18, both in Macy's brick-and-mortar stores and online.
