Mervyns -- turning it around?

Mervyns looked pretty much dead a couple years ago when Target dumped them in part of their effort to get out of the department store business. But the chain is showing signs of life.

The company has been drastically slimmed down, from 257 stores to 170, cutting back to its core west coast and southwest roots. After all the cuts, the chain just announced that it will open four nex stores -- in California, Arizona, and Texas.

The merchandise focus, as seems to be all the rage these days, is on private label

Central to Castagna's comeback strategy is revamping Mervyns' merchandise mix. Though remaining faithful to the store's core demographic group of 25-to-49-year-old women with families and moderate incomes, Castagna said she has culled national brands, keeping only the most popular and broadening the type and volume of apparel, shoes, accessories and home merchandise from those vendors. Today, there is no shortage of familiar brands - Dickies, Chaps, Nike, Van Heusen, Levi's, Haggar, Gloria Vanderbilt, Samsonite, Kitchen-Aid and Royal Velvet - on store shelves.

But Castagna also has expanded Mervyns' private-label offerings across product categories, including High Sierra, Hillard & Hanson, Sprockets and Real Kitchen. She has signed an exclusive agreement with Southern California designer Susie Coelho to carry her home merchandise.

Where are brand name manufacturers going to market their products when all the retailers have finished tossing them out?