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Joe Fresh Announces Expansion Plans Amid Partnership With J.C. Penny

Joe Fresh, Canada’s top apparel brand, plans further expansion in the U.S. after opening its flagship retail outlet of 14,000 square feet on New York’s Fifth Avenue last March.

In April of 2013, Joe Fresh will open in 638 J.C. Penney Company stores, with what Penney’s characterized as stores-within-a-store. Size of the outlets will range from 1,000 to 2,500 square feet.

Joe Fresh describes its line as colorful, modern and affordable. Products include dresses, silk blouses, t-shirts, denim, footwear and outdoor fashions. The firm also offers a line of Joe Fresh beauty products.

Complementing its offerings at Penney’s brick and mortar stores, Joe Fresh will sell products from Penney’s website, jcp.com. This double-barreled marketing will give the Joe Fresh brand national reach in the U.S.

“We are extremely proud to partner with one of America’s most iconic department stores, especially as they embark on a retail transformation headed by visionary CEO Ron Johnson,” says Joe Mimran, of Joseph Mimran & Associates, Creative Director of Joe Fresh, Home and Entertainment for Loblaw Companies Limited.

Penney’s also anticipates major benefits from its Joe Fresh partnership.

“We are so excited to announce the Joe Fresh brand as J. C. Penney’s newest shop partner,” said Penney’s CEO Ron Johnson.

“Displayed in its own unique and engaging environment, the Joe Fresh shops will be an important part of J. C. Penney’s repositioning to a completely re-imagined department store,” he said.

Partnering with Joe Fresh is part of Penney’s chain-wide restructuring effort to create more stores-within-stores. An example of the new approach may be seen at Penney’s renovated Manhattan Mall, first of the firm’s department store’s to be refitted to accommodate the Joe Fresh brand and its products.

Behind Penney’s ambitious repositioning is declining sales. Newly-installed CEO Johnson, previously a senior executive at Apple, plans a thorough re-engineering of every element of Penney’s business strategy, including product offerings. [L3]

Standard & Poor’s Ratings Services recently pegged the company’s credit rating in the junk category, after a 20 percent first-quarter drop in sales.


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