This is the Wei: private labels set you apart as a retailer.

My previous post on the Saks Fifth Avenue flagship store highlighted the importance of private label collections to a specialty retailer. Private label collections enable retailers to have greater flexibility with their merchandising strategy, more control over the quality of their products and give retailers a greater margin on purchases. These are advantages that Lord & Taylor – owned by the same Hudson’s Bay Company that had recently acquired Saks Fifth Avenue – recognizes and have actively sought to capture.

Firstly, at Lord & Taylor, private label offerings are never just cheaper alternatives to designer collections. The retailer makes a clear effort to establish quality standards for its private label collections as seen in its Cashmere Shop program where it offers well-priced cashmere garments for men and women in a wide range of colors and sizes. As stores face a retail environment increasingly dominated by designers, a successful private label program not only burnishes a retailer’s reputation for quality but also establishes quality benchmarks for wholesalers.

In addition, Lord & Taylor is a good example of how a good private label program becomes complementary to its designers offerings. This gives buyers more opportunities to invest in special and seasonal pieces. For example, the retailer is able to invest in a breadth of designer dresses from Tadashi Shoji to Zac Posen because its private label collections provide ample variety in staple pieces. While it may not claim the same range of merchandise as a Bloomingdale’s or a Macy’s, by investing smartly, Lord & Taylor is able to merchandise smartly and provide an impressive variety within a smaller shop.

Finally, in the age of e-commerce and “showrooming”, a bricks-and-mortar retailer that is able to produce well-priced and attractive private label collections is able to compete with the internet simply because these collections are only available at the retailer. The Black Brown 1826 collection that functions as Lord & Taylor’s de facto private label menswear collection can only be bought through Lord & Taylor stores and its proprietary website. More importantly, it also helps to establish Lord & Taylor as a brand in its own right, providing the retailer with a means of capturing customer’s attention and loyalty.

As a merchandising tool, the private label collection may not have the same glamour as social media or the latest designer offerings. Yet, when used wisely, it can provide today’s retailers with an edge and more importantly, what the customer wants.