Retailers, consumers and prices
Check Out Line: Growing Penney’s-Macy’s rivalry
Check out the growing J.C. Penney-Macy’s rivalry.
The deal will give Penney more exclusive products, guarantee revenue and profits for Claiborne and free up Macy’s to better differentiate itself as its customer base increasingly overlaps with Penney’s, analysts and consultants said.
Macy’s has traditionally been positioned as a little higher-end than Penney, but the 2005 merger of Macy’s owner Federated Department Stores with May Department Stores broadened the customer base and brought the company into more direct competition with Penney, analysts said. Penney, meanwhile, has been expanding its reach into Macy’s territory.
Department stores like Macy’s and Penney have beefed up their exclusive label offerings to woo shoppers to their stores and reduce competition centered on price.
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