Designer Brands Expects Private Label To Drive Revenue Growth

Designer Brands is aiming to significantly increase its private label sales under its new five-year growth plan, the company revealed Friday.

It has set a goal of increasing revenue from private labels to one-third of its total revenue by fiscal 2026, up from the current 19%.

“At Designer Brands, we have truly taken control of our destiny as we have transformed into a brand builder, marrying our world-class design and sourcing capabilities to our industry-leading direct-to-consumer infrastructure,” CEO Roger Rawlins said in a statement.

“Our Owned Brands are the key driver of growth over the next five years, and we plan to double sales of these brands by fiscal 2026,” he added. “This growth is complemented by maintaining our relationships with top National Brand partners who utilize our leading omnichannel capabilities in their own DTC efforts in ways unique to DBI.”

The company’s plan follows similar efforts by retail heavyweights such as Macy’s and Target, which have successfully turned their private labels into key revenue growth engines.

Macy’s, for example, currently has 24 private labels, four of which are apparel lines that are on track to become billion-dollar brands by 2025. Target, meanwhile, holds an expansive roster of 48 private labels across segments such as apparel, consumer goods, grocery and home. Ten of Target’s private label brands are worth more than a billion dollars.

It thus comes as no surprise that other players, such as Designer Brands, are following the blueprint that other successful players have laid out.

Originally published at https://retailbum.com on April 11, 2022.