Macy’s is redesigning its private brands portfolio, kicking the effort off with On 34^th, a women’s apparel and accessories line.

While the department store has been cooking up the makeover for the last two years, the launch may be coming at just the right moment, as U.S. consumers continue to push clothing purchases to the back burner.

“The heartbeat and voice of the customer is infused in all that we do, and we know that our customer loves great brands that deliver on our promise of quality, style and value,” said Nata Dvir, Macy’s chief merchandising officer, in the announcement.

In addition to refreshing and replacing some lines, Macy’s intends to launch three new labels by the end of 2025. The changes are based on extensive customer research, including 100,000 online surveys, in-store fit studies and hundreds of shop-alongs.

The department store giant has said private-label strategies are one of its five biggest priorities as it continues its transformation efforts.

Macy’s private brand portfolio accounts for about 16% of brand sales. Historically, that share has been as high as 20%, which the New York-based retailer says it can achieve again.

While most retailers offer some private-label apparel, few excel. Target is a notable exception, with 10 private-label brands with more than $1 billion in annual sales.

Macy’s On 34^th collection will be available next month, with over 750 SKUs and 250 unique styles, all designed to mix and match. The collection is size-inclusive and priced from $19 to $300.

While economists seem more hopeful that the U.S. may escape recession, retailers carefully watch consumer-spending trends. The government’s latest retail report shows that retail sales rose 0.2% in June, while most observers expected an increase of 0.5%.

Still, it was the third straight month of gains, demonstrating continued resilience in spending. And the Commerce Department also revised May’s figures upward a bit, and some sectors – including online spending, electronics and appliances – did better than expected.

Clothing sales rose just 0.6%.

Last month, Macy’s reported $4.98 billion in quarterly sales, a decline of 7%. And it ratcheted back its forecast to reflect continued economic pressure on consumers.

As American shoppers continue to rein in discretionary spending, Macy’s is answering the call with On 34th, a women’s clothing and accessories line.