Mirroring similar initiatives from rivals like Kohl's (NYSE: KSS) and even Target (NYSE: TGT), department store chain Macy's (NYSE: M) unveiled plans on Wednesday to expand its private label brands. The company's executives explained at an investor meeting it hopes in-house brands will make up 25% of its revenue by 2025. Private label explosion Private label goods are arranged and sometimes even made by a retailer outside of conventional wholesale supply channels. Rather than relying on familiar names like Nike or Levi Strauss & Co., a department store chain taps a manufacturer directly. While such goods are considerably cheaper to purchase, the burden of marketing them falls entirely on the store selling them. Image Source: Getty Images. It's a bigger business than most consumers realize, with many shoppers regularly purchasing in-house products without realizing it. Target's clothing lines Cat & Jack along with Prologue, for instance, are both private label brands. Market research firm NPD estimates that private label goods now account for roughly one-third of the United States' $400 billion dollar consumer apparel market. The Macy's opportunity Macy's in-house brands include International Concepts and Alfani, both of which the retailer believes will generate at least $1 billion in annual revenue apiece within the next five years. Style & Co. and Charter Club are also private labels Macy's intends to turn into billion-dollar franchises by 2025. Even at one-fourth of its total business, Macy's house brands exposure would still not match that of more experienced department stores. Private-label goods drive 45% of Kohl's sales, according to estimates from Jungle Scout, jibing with other estimates about Kohl's business mix. At one point around half of JC Penney's was produced by house brands. 10 stocks we like better than Macy'sWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Macy's wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 1, 2019 James Brumley has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Nike. The Motley Fool has a disclosure policy.Source