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Macy’s Inc. (M - Analyst Report) announced its plans to expand the “millennial strategy” by widening its range of active wear offerings. This move comes as part of the company’s efforts to attract Generation Y. We believe this initiative by the company could prove to be a successful sales driver.

Macy’s will be adding athletic apparel assortments of big brands like Nike Inc. (NKE - Analyst Report), Under Armour, Inc. (UA - Analyst Report), Calvin Klein Performance, The North Face and Ideology to its stores this fall.  Alongside, the company will add Helly Hansen at select locations.  

Last month, the company entered into an agreement with LIDS Sports Group, a subsidiary of Genesco Inc. (GCO - Snapshot Report) to sell its merchandise through stores named Locker Room by Lids. The company plans to integrate these into about 25 Macy’s stores in fall 2013, while adding another 175 in-store in spring 2014.

Macy’s announced its “millennial strategy” in Oct 2012 and till date it has already launched more than two dozen brands. In the recent past, the company added 2 special new brands, Maison Jules and QMack to its offerings.

These brands are showcased at mstylelab stores, targeting customers in the age group of 13­ – 22, and Impulse departments, principally catering to consumers aged between 19 – 30. The company’s “millennial strategy” aims at tapping the youth of America, who are trendier and fashion oriented. With the execution of its plans, Macy’s expects to attain a complete makeover by the end of 2013.

Alongside, Macy’s added several new brands to allure fashion-conscious consumers. Such brands include Marilyn Monroe, MADE Fashion Week, Keds and Teen Vogue. 

Currently, Macy’s holds a Zacks Rank #3 (Hold).

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