Dive Brief:
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Spanish fast-fashion brand Mango is closing 450 concession outlets in J.C. Penney stores, the company said Tuesday. The brand saw just 0.5% of its global sales through the American retailer.
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The retailers’ agreement ends in February and won’t be renewed. Canadian apparel brand Joe Fresh and J.C. Penney easier this year ended a similar agreement.
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Mango will focus on growing its retail presence in the U.S. through stand-alone stores, including its existing stores in New York and Miami. The privately held retailer has suffered from its international expansion, which has brought its stores to more than 100 countries.
Dive Insight:
Of J.C. Penney's partnerships with fast-fashion Mango, stylish basics Joe Fresh, and beauty retailer Sephora, only Sephora is doing well, touted by both retailers as boosting sales.
The choice of a Mango partnership does make sense though: The fast-fashion retailer was a good way to update J.C. Penney offerings and bring in a younger customer.
Perhaps the deal, which was announced in 2009, suffered because there are so many apparel retailers at various price points clamoring for teen and young adult consumers, while those consumers appear to be saving up for things like electronics.
Correction: An earlier version of this article incorrectly stated that the Mango and Sephora partnerships were launched by ex-CEO Ron Johnson. However, it was former CEO Mike Ullman, who was in charge before Johnson, that launched both collections during his tenure at J.C. Penney.
