EXCLUSIVEBRANDSOURCING RETAILER/WHOLESALER ...

EB skus: N/A
Profile: The year 2011 represented a transition period for this retailer, including a restructuring
and major management changes. In November, Ron Johnson , the former head of Apple Stores,
was named CEO, along with a new executive team. A new pricing strategy was announced,
including plans for new store layouts and merchandising assortments. Additionally, a brand new
company logo debuted: a square reminiscent of the US flag, using red-white-and-blue colors. A
smaller blue square (upper left corner) shows ‘jcp’ in white letters; the full square has a border in
red with a white fills-in. The company then plotted its 2012 transformation strategy, calling for the
development of three concepts within JCPenney department stores. By 2014, the prototype stores
will appear, featuring The Shops (up to 100 curetted stores, shops and boutiques) placed alongside
a “pathway”, called The Street, which surrounds The Square or central core of the store, where
instead of selling merchandise, it offers fun, services and attractions for customers. Initially,
JCPenney will create The Shops, such as Martha Stewart retail stores with home and lifestyle
merchandise, a Liz Claiborne store, a Nanette Lepore store stocked with the runway fashion
designer’s creations, etc. These shops are scheduled for rollout beginning in 2012. A new show
concept, using the Joe Fresh brand, licensed from Loblaws of Canada (also in this database) was
recently announced. (In November 2011, the company completed its acquisition of worldwide
rights for Liz Claiborne ‘s family of trademarks plus the US and Puerto Rican rights to the Monet
trademark.) Also, its ongoing development of in-store boutiques continues: 77 Sephora beauty
boutiques bring their total to 308, 423 MNG by Mango shops opened bringing their total to 500,
and 502 Call it Spring shops opened, bringing its number to 505. CEO Johnson also initiated a
three-pricing strategy, i.e., everyday, month-long, and best value pricing. The so-called monthlong
value strategy, which was designed to replace the typical “sale” promotions flopped;
customers didn’t buy this, as 2012 first quarter sales results indicated. So it’s back to the sales
promotions. With its 2011 same store sales flat and its balance sheet showing a $ 152 million loss
for the year, versus $378 million net profit in 2012, the retailer opened only three new department
stores during the year. It also introduced a new store concept, “The Foundry Big & Tall Supply
Co.,” targeted to males fitting that description—and representing more than half the US male
population according to marketing data. These 5,000-to-6,000-square-foot stores carry brands and
private brand athletic wear, sportswear, footwear, and accessories, plus tailored clothing. The
stores look like a microbrewery (even their fitting rooms resemble giant copper beer tanks); but
the draw for customers is not beer, but big TV screens and a poker table. Some 10 stores were
opened in Texas and Missouri with plans for up to 100 by 2013. The company is “elevating” its
private brands by improving their quality and restoring brand equity.
Procurement Contacts: John Walter, Director of Marketing; Peter M. McGrath, Executie P,
Product Development & Sourcing
JEAN COUTU GROUP (PJC) INC., THE
530 Beriault Street, Longueuil, Quebec J4G 1S8 CANADA
Tel: (450) 464-9760
Fax: (450) 646-2510