Imitation is the greatest form of flattery.

Implications: 1. Perhaps Macy’s (Federated Department Stores) tie up with Martha Stewart prompted J. C. Penny management move forward with the development of American Living as its competitive play against Terry Lungren’ flanking move.

2. One thing is for certain though; competition for the more affluent, middle market customer is growing more intense.

3. However, it is problematic whether Polo Ralph Lauren's Global Brand Concepts can arbitrarily create winning brands.

Analysis: They say imitation is the greatest form of flattery.  Perhaps Macy’s (Federated Department Stores) tie up with Martha Stewart prompted J. C. Penny management move forward with the development of American Living as its competitive play against Terry Lungren’ flanking move.  Clearly Martha Stewart Living’s management has reduced its downside risk by broadening its customer base, while Federated has stepped up pressure on for K-Mart, Sears, Target, and J. C. Penny’s to keep their core customers out of Macy’s stores.

Just how the competition will respond isn’t clear. Sears could try to establish a new brand also, but they haven’t had a successful, major private label brand launch in the last three decades.  A simpler solution would be to recast Lands End. Others like Target may ignore it for the time being.  After all it is problematic whether Polo Ralph Lauren's Global Brand Concepts can arbitrarily create winning brands the same way Nashville spins out boiler plate country music.

One thing is for certain though; competition for the more affluent, middle market customer is growing more intense.  Wal-Mart wants to move upscale to reinvigorate dwindling sales.  Macy’s has to prove its one department store fits all. Sears Holding has yet to achieve its first sales increase since the merger. Market leaders like Target and J.C. Penny want to hold on to their market share gains.