J.C. Penney is getting ready to kick off the biggest exclusive brand launch in its history on Feb. 24 with the American Living line from Polo Ralph Lauren.
The line, which will only be sold by Penney, is initially being introduced to consumers in the chain's women's, men's, children's, home and luggage departments in stores and online. Eventually the American Living line and its flag and eagle logo will have items in every one of Penney's 40 departments.
How well the American Living line is received remains to be seen with a launch that coincides with a period in time when consumers have been pulling back on their purchases.
Penney president Ken Hicks isn't worried. He told The Dallas Morning News, "I think the timing is actually great. I'd be more worried if we were entering challenging times and didn't have something like this. It positions us to take away from the competition."
Analyst Walter Loeb of Loeb Associates offered an initial review of the American Living line. "The merchandise is superbly made and finely detailed, with good design and fabrics of high quality. It's very saleable and wearable," he said. "I will probably buy some of the jackets in men's suits."
Mr. Loeb can see the American Living line helping Penney compete for customers who normally shop at rival department stores such as Macy's "but probably not a Bloomingdale's shopper."
Penney's move is a definite nod to more upscale shoppers, an approach it has taken before with lines such as Nicole by Nicole Miller, Bisou Bisou and Chris Madden. The retailer has also done well with the Sephora store-within- a-store concept.
Katheryn Burchett, Penney's director of American Living implementation, has high expectations for the brand. "Half of America already shops J.C. Penney, but our research shows she shops in one or two departments. But this brand will encourage her to shop across the store."
Discussion Questions: Does Penney have a hit or a miss on its hands with the American Living line from Polo Ralph Lauren? How might it affect the retailer's image? What do you think about the timing of the launch?