Macy's Loves Glee, But Boring Clothes May Not Boost Sales
Among the many things apparel retail managers need to know to create a winning assortment is which trends to buy into and which to pass up. While it's no surprise that Macy's (M) wasted no time cozying up to Fox Television to create a licensed clothing line for juniors based on the hit show Glee, the department store chain may soon find itself with a pile of unsold merchandise that won't move even with markdowns.
It's easy to forgive Macy's for the misstep. The timing is just too good to pass up. Glee is totally hot right now -- it just snagged 19 Emmy nominations-- and the new season will debut in September. So the company is trotting out (into serious back-to-school shopping season) an armload of screen-printed tees and hoodies splashed with the show's logo or lyrics to iconic songs performed by the cast. There's also a shirt that bears the letters WMHS in a nod to Glee's varsity athletes and cheerleaders (the latter, Cheerios, sport their uniforms constantly). The pieces range in price from $19.99 to $34.99.
The problem is that a collection of t-shirts and hoodies is at best uninspired, at worst, not going to resonate with "Gleeks" devoted to the near-costumey style of the characters (think Mr. Schuster's J.Crew-inspired sexy nerd, or even Rachel's naughty schoolgirl). And it's puzzling because it's a far cry from Fox Licensing's original intent.
EVP Robert Marick said, "We didn't want to just slap a Glee logo on a shirt. The product has to reflect the creativity of the show." However, it merely follows the other Glee-branded products planned: karaoke machines, musical greeting cards, pajamas, games, books, bedding and cosmetics, all sport the show's imprimatur, and not much else. That's a critical component for the long-term saleability of the products, not to mention the ability to cash in on a lucrative licensing deal.
Macy's is currently riding high the crest of a big boost in net income and revenues for the second quarter. Income increased to $147 million compared with $7 million in 2009 and revenue rose 7.2 percent and comps increased 4.9 percent, the latter considered a key measure of a retailer's health.
If the trend continues it may help lessen the blow if the goods don't sell. Macy's is turning nearly 40 percent of its merchandise over to exclusive label collections so mistakes can be costly. And let's not forget that licensed clothing usually sells well to the scooter set. Yet, the Glee duds (like Madonna's Material Girl line) are aimed squarely at at an even tougher market segment - notoriously fickle teens.
Hot Topic (HOTT) knows firsthand that building a business model based on trends is that a runaway train of success can end in a screeching derailment based on the whims of 14-year-olds. When the Twilight's "Twihards" turned their backs on vampire gear, Hot Topic sales went down the toilet.
Let's hope Macy's left itself an out if fan fervor doesn't make its cash registers ring.
Images via theGleekspot
Related:
- Hot Topic's Bet on Vampires May Come Back to Bite It
- Warning to TV Execs: Jersey's 15 Minutes is Almost Up