Dive Brief:
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J.C. Penney and Canadian discount-apparel retailer Joe Fresh will part ways this year, ending a partnership that in March 2013 seemed promising for both parties.
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Joe Fresh is focused on expanding worldwide and boosting its own standalone stores, the company said.
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The collaboration had been a Ron Johnson idea to change up Penney’s merchandise, but sales have not panned out.
Dive Insight:
Joe Fresh is on the rise, and J.C. Penney is somewhat treading water after coming out of its free-fall.
While in hindsight the partnership wasn’t a great fit, and critics of then-CEO Ron Johnson may feel comfortable saying “I told you so,” it’s fairly easy to see why Johnson saw the partnership’s potential: Like Uniqlo, Joe Fresh has a stylish basics vibe at a fair price, and J.C. Penney was looking to attract new customers in part by improving its merchandising.
"Joe Fresh wasn’t what the customer at JCPenney wanted," a retail analyst told WWD. "It’s the right decision to pull it out. They can make more room for something else."
