The trend: Apparel retailers are borrowing grocers’ playbook by expanding and elevating their private-label lines, borrowing grocers’ playbook, to stand out in a crowded market and appeal to budget-conscious shoppers.

The examples:

• Urban Outfitters’ new store format significantly expands the presence of its owned brands, including BDG denim, OFU (Out from Under), and Standard Cloth.
• Stitch Fix told Retail Brew it will spotlight its private-label brands this holiday season, betting on shoppers’ desire for quality at a good price.
• Online subscription retailer Bespoke Post has more than doubled its private-label lineup—from two to five brands—in recent years. Its in-house labels, including travel bag maker Halfday, now drive more than half of total sales, per Retail Brew.
• Macy’s introduced On 34th, a collaboration with costume designer Alix Friedberg inspired by her work on Apple TV’s Palm Royale. The collection’s playful yet polished aesthetic anchors its women’s apparel and accessories.
• Target, which boasts a $31 billion owned-brand portfolio, revamped its Universal Thread denim line with new fits, washes, and premium fabrics. It also launched KBB by KAHLANA, a size-inclusive women’s line featuring sculptural silhouettes, layered shapes, and rich earthy tones—all under $100 and available in select stores and online.

Our take: Private labels help retailers differentiate their assortments and pivot quickly when tastes shift. Target, for instance, sends its Gen Z-focused Wild Fable design team to college campuses to scout budding trends—like off-the-shoulder sweatshirts and low-rise baggy jeans—then gets those looks onto shelves within the same season. For retailers, investing in private brands can offer better margins and differentiation that national brands can’t match.

​​This content is part of EMARKETER’s subscription Briefings, where we pair daily updates with data and analysis from forecasts and research reports. Our Briefings prepare you to start your day informed, to provide critical insights in an important meeting, and to understand the context of what’s happening in your industry. Non-clients can click here to get a demo of our full platform and coverage.