Macy's, a once-dominant force in the American department store landscape, has undergone significant transformations in recent years, marked by store closures, shifting brand strategies, and a continuous battle for relevance in a rapidly evolving retail environment. One aspect of this transformation, less discussed but indicative of broader trends, is the disappearance of Burberry watches from its shelves. Understanding why Macy's dropped Burberry watches requires examining several interconnected factors: the complex history of Burberry watch production, Macy's own internal struggles, and the changing dynamics of the luxury goods market.
Who Makes Burberry Watches? The Fossil Connection
To understand why Macy's might have discontinued carrying Burberry watches, we must first address the question of who actually manufactures them. This isn't a straightforward answer. Burberry, the iconic British fashion house, doesn't produce its watches in-house. In 2001, Burberry entered into a licensing agreement with Fossil Group, a Texas-based company known for its own extensive line of watches and accessories. This agreement gave Fossil's Swiss division the rights to design, manufacture, and distribute Burberry watches globally.
This partnership, while initially beneficial for both brands, became a source of contention for some consumers. The perception arose that Burberry watches, despite their luxury branding and price point, were essentially high-priced Fossil products. This perception, whether accurate or not, significantly impacted the perceived value proposition of the watches. Consumers who associate Burberry with high-end fashion might find it jarring to discover that their watches are produced by a company known for more accessible, mass-market timepieces. This disconnect between brand image and manufacturing origin likely contributed to declining sales and subsequently, Macy's decision to delist them.
Why Did Burberry Stop Making Watches (In-House)? The Strategic Shift
Burberry's decision to outsource watch production to Fossil wasn't arbitrary. It reflected a broader strategic shift within the company. Manufacturing watches in-house would require significant investment in infrastructure, expertise, and resources. By partnering with Fossil, Burberry could leverage their existing manufacturing capabilities and global distribution network, allowing them to focus on their core competencies: clothing, accessories, and fragrance. This decision, while seemingly pragmatic, ultimately contributed to the perception of Burberry watches as less exclusive and less aligned with the brand's overall luxury image.
The lack of direct control over watch production also meant Burberry had less influence over aspects such as quality control, design innovation, and pricing. This lack of direct control might have led to inconsistencies in product quality or pricing strategies that failed to align with the brand's overall luxury positioning. This could have negatively affected sales, contributing to Macy's decision to remove them from their inventory.
Macy's Confronts Struggles with New Exclusive Brands
Macy's, like many traditional department stores, has been grappling with declining sales and increased competition from online retailers and fast-fashion brands. The company has embarked on a significant restructuring plan, which includes closing underperforming stores, streamlining operations, and focusing on attracting higher-end brands and exclusive merchandise.
The strategy behind bringing in exclusive brands is to enhance the shopping experience, attract a more affluent clientele, and differentiate Macy's from its competitors. However, this strategy also involves a careful selection process. Macy's likely decided that Burberry watches, given their perceived lower exclusivity and the association with Fossil, no longer aligned with its new brand strategy. The space previously occupied by Burberry watches could be better utilized by brands that better resonate with Macy's redefined target market and brand image.
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