MACY’S and Bloomingdale’s CEOs have hit back at suggestions that their businesses are suffering from dupe culture, warning there is a need for both.
Speaking on a panel at the National Retail Federation conference, Macy’s CEO Tony Spring spoke about the uniqueness of each business owned under the department store’s banner.
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Spring appeared alongside Bloomingdale’s CEO Olivier Bron and Bluemercury CEO Maly Berstein which are also owned by the iconic retailer.
The comments come amid a rise in counterfeit products, spurred on by “dupe culture” which is rife on social media.
When questioned about whether the market for luxury goods was under threat, Bron argued that it was not under threat as they were a completely different product.
He said people who buy a luxury bag do it for the “experience” and “story” rather than the actual product.
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“What’s the point of buying a $5,000, $6,000 bag?” he said.
“It’s not about a bag — it’s about a story, an experience.
“When you buy a bag, you buy a story, you buy a history, you buy a social marker.
This relationship, this moment, is very, very special.
“There have always been threats to luxury, our job is to adapt and to find the best value proposition.”
Spring said there was a market for both luxury goods and dupe products, using the example of lab grown and real diamonds.
“There’s a market for diamonds and lab-grown diamonds at the same time.
“I wouldn’t call lab diamonds a dupe, but the fact is that they both use the word diamond, and there is a market for both.”
The discussion was wide ranging, with Spring addressing Macy’s decision to shutter 150 stores.
Amid a dwindling financial performance, Spring admitted the shopping experience in the iconic department store “should be better” and revealed a number of changes being made to its model.
DON’T SOUND THE DEATH KNELL
The retail boss also disputed that the “death knell” of department stores had been sounded.
Noting that the shopping experience “can and should be better”, Spring argued that the new strategy had given the company an “opportunity to reimagine the Macy’s Inc portfolio” and said he was already seeing “green shoots” from the changes.
He explained the company was making a number of changes to stores, which had resulted in three consecutive quarters of sales growth at 50 stores.
“Let’s change the presentation on the floor in terms of density of product. Let’s put people back into the fitting rooms to make sure the service experience is better.”
Spring told retail industry leaders that department stores were here to stay, despite multiple brands including Kohl’s and Nordstrom struggling.
“I love the question because the death of department stores has been going on since I was a child,” Spring said.
“So, I’m not that young anymore, and the same death knell has kind of been rung multiple times.”
MORE MASS CLOSURES
Spring said department stores had flexibility in their business to respond quickly to consumer trends because of the wide variety of products they sell.
Macy’s is not the only retailer undergoing mass closures.
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Kohl’s confirmed it will shut down 27 underperforming stores across 15 states.
Plus, Joann began liquidation sales up to 90% as it confirmed six stores closing down after filing for bankruptcy last year.
WHAT IS DUPE CULTURE?
“Dupe culture is on the rise in e-commerce and in-store shopping”
Dupe culture is the trend of buying cheaper alternatives to premium products.
The term “dupe” is short for duplicate.
Dupes are lower-cost versions of popular products similar in quality or functionality.
Dupes are popular because they allow consumers to save money while getting value.
Shoppers often get a thrill of finding a good dupe and sharing it with others.
Dupes often go viral on social media, for example when Walmart sold a cheaper alternative to the Hermes Birkin bag.
However, experts have warned dupes may spark legal issues with intellectual property or hurt smaller brands.
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