Besides private labels, stores still needs brands. How do you compete with other stores with the same brand? You create store specific collections.
Exclusively at Macys
As much as retailers want to only sell exclusive products, or private label ..for fear they will lose to the internet or other competing dealers on price when they invested in the space, inventory and salespeople.
Retailers still need Brands. Why so? Because brands generate the feeling of lifestyle and prestige. One growing trend in many industries from fashion to fixtures and even power tools, is by offering a branded product that is only exclusive to that retailer. Meaning you can't get anywhere else...while still leveraging the brand's equity.
This makes it harder for the consumer to buy the exact product over the internet or another retailer. Its just the one added design or one added feature that you can get in the regular assortment.
This can be a nightmare for a brand. If they had 100 skus. Now we have 10 skus only sold to retailer X, and another set of skus sold to retail Y, while everyone can access the 80 other skus.
Will this cause resent from other non exclusive branded retailers or dealers? Will this be harder to manage from a distribution point? Will this dilute the brand in someway. Be interesting to see how it all plays out. Its just another way retailers and dealers need to protect their brand and space in selling.