JCPenney's new partnership with affordable Canadian brand Joe Fresh has been hailed as a potential lifeline for the struggling retailer. But others aren't so sure.
The new Joe Fresh line will put JCPenney's new boutique idea for "branded sales space" to the test, featuring a line of bright, colorful clothing, and for a steal. Everything in the collection is under $70.
The designs will be featured in about 700 JCPenney retail stores across the country, and the two companies have a four-year deal.
The line is bound to attract bargain-savvy consumers. But one analyst quoted in Businessweek said the Joe Fresh partnership will be the true test of whether JCPenney can work its way out of the hole its dug itself into.
“If Joe Fresh doesn’t work, this could be the worst Ides of March since Brutus greeted Caesaron the floor of the Senate,” Maxim analyst Rick Snyder told Bloomberg Businessweek. "[Joe Fresh] is kind of a microcosm of what they’re trying to do, and if it doesn’t work, I think it’s going to get really ugly.”
Joe Fresh was launched by designer Joe Mimran in 2006.
Mimran grew up in Toronto and had been enthralled by fashion since he was a kid.
He first joined the fashion business in 1976. His brother owned a factory that aimed to recreate their mother's dress designs for a mass audience. They called it "Ms. Originals."
Mimran founded Joe Fresh as a more affordable brand that would be sold in Canadian supermarkets.
It was formed under Loblaw Companies Limited as a way to compete with Wal-Mart's increasing Canadian presence. And essentially, Joe Fresh was selling its frocks next to food.
Within a few years, Joe Fresh had multiplied into 330 locations throughout Canada and featured men's and women's clothing items from pants to purses.
The brand is named after the designer himself. And the Fresh is "a nod to groceries."
Mimran was also behind the launch of the Club Monaco brand.
Mimran, who was born in Monaco, was inspired to develop the line after he could not find a plain white t-shirt he liked.
The brand, known for providing "affordable luxury with a modern sensibility," is headquartered in New York City and has more than 140 worldwide locations, including stores in Belgium, Singapore and the UK.
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