July 26, 2012
Joe Fresh Set to Conquer U.S. With Assist From JCP
Last October when Joe Fresh announced plans to open six new locations (four permanent/two temporary) in the New York metropolitan area, reactions from the RetailWire community were largely favorable.
BrainTrust member Fabien Tiburce said, "Joe Fresh has done something few can: it sells fashion to fashionistas and ‘regular’ folks (like yours truly) alike. Joe Fresh is neither ‘intimidating’ nor overpriced and yet my wife and her girlfriends swear by it. And guess what? I now have two pairs of Joe Fresh jeans, three shirts, etc. I am bullish on Joe Fresh accessible fashion at affordable prices."
Joe Fresh fans will be happy to hear that the Canadian brand owned by Loblaw is about to become widely available in the U.S. through branded shops planned to open inside nearly 700 J.C. Penney stores.
Beginning in April of next year, the 1,000 to 2,500 square-foot shops designed by Joe Fresh will debut with women’s apparel. Merchandise will also be available on Penney’s website.
"This give[s] us instant access to the U.S. suburban market without taking on a lot of risk," Joe Mimran of Joseph Mimran & Associates and creative director, Joe Fresh for Loblaw Companies Limited, told the Toronto Star. "When you combine it with the reinvention of J.C. Penney, it makes it doubly exciting."
"We are so excited to announce the Joe Fresh brand as J.C. Penney’s newest shop partner," said Penney CEO Ron Johnson, in a statement. "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."
Wendy Evans, president of Evans & Company, a retail consultancy in Toronto, told the Star, "To get this many stores this fast is a real vote of confidence on both sides. It’s a really bold move for a Canadian brand retailer to make in the United States. I would go so far as to say it’s the boldest."
BrainTrust
Recent Discussions
Discussion Questions
Discussion Questions: Is the deal with J.C. Penney one of the first steps towards Joe Fresh becoming a household name in the U.S.? What challenges will the brand face operating inside of Penney stores and what will it need to do to overcome them?
Poll
What a great move for Joe Fresh from a distribution POV. BUT … I do think the Joe Fresh brand should begin to seed the U.S. market with branding and perhaps some pop-up retail in order to create some middle market demand. If they have to rely only on the current base of JCP shoppers for volume, they could be sorely disappointed. They’re likely to be up against Target for share of shopper wallet.
There has been plenty to criticize about the JCP “reinvention” but the Joe Fresh partnership can be a win. It does feel like the Topshop/Nordstrom partnership on a bigger scale.
But, as with everything related to JCP these days, there are some unanswered questions about execution:
1. How much market share will JCP continue to bleed before the “reinvention” is in place?
2. The process is unfolding at a snail’s pace, with the changes in place by the end of 2015…can JCP move any faster?
3. The announced shops are skewing “young” so far…will the holistic effect of the “new” JCP provide anything that appeals to its core consumer?
One more caution: Don’t be surprised to see other collaborations (Uniqlo shops inside Macy’s as a “hypothetical”) that can be executed at a faster rate of speed.
The addition of Joe Fresh is a good move for both JCP and Loblaw. JCP gets to vend some cool, low-cost fashion and Loblaw gets instant US market penetration.
I like the ‘back to the future’ department store as specialty retail model that Ron Johnson is putting together with Joe Fresh and other brands. It’s refreshing and easy to understand and shop from a customer perspective. He has created a great stage for what should be a successful retail show.
My only hope is that he puts together a service model that’s tightly wrapped around the fitting room. Because as I’ve said a million times, no buying decision is made until the try-on is done. I look forward to seeing how he orchestrates the in-store service strategy of this re-invention project.
The inclusion of Joe Fresh into JCP is a great move on the part of JCP. It is an even bigger shot in the arm for Loblaws. As part of the re-inventing of JCP, the former John’s Bay brand has become a very tired brand and a new and fresh (no pun intended) brand was needed. So given the debut on the streets of New York City was very good, it is now the right time to make the brand available to the rest of the country. A positive move and marketing initiative for JCP, however, this is only one where many are needed.
Joe Fresh is one more plank in the new J.C. Penney platform. The success of Joe Fresh is at least partially dependent on the rest of the reinvention of the retailer … as well as a general revival of this style of retailing. Many Penney’s are found in malls, which are losing sales to etailers and other formats. Joe Fresh may have had more success as a standalone in strip malls than as an in-house brand of J.C. Penney, because while Penney’s guarantees some traffic, it also limits the audience too.
I can see what’s in this for JCP, but it seems pretty risky for Joe Fresh. Yes, they get instant mass distribution, but the JCP “reinvention” is so riddled with issues that it very well may not end up being a plus in the long term for Joe Fresh.
First, is the JCP customer really the Joe Fresh customer? JCP’s demo is much older. Will a younger demo go into JCP for Joe Fresh? Or will the JCP connection taint Joe Fresh in younger customer’s minds?
Second, I believe JCP is going to end up having to revert to its promotional pricing strategy. Is Joe Fresh willing to go there, with all that implies for brand integrity? Or are they planning on being an oasis in a sea of sale toppers?
We’ve been through this with other brands and other department stores. The pattern is that the brand gets swallowed up by all of the issues with the department store model, and brand integrity is sacrificed for mass distribution and sales volume. Is this really where Joe Fresh wants to go?
If J.C. Penney actually succeeds at executing their new strategy and surviving long term, then you can bet on Joe Fresh becoming a powerful brand in the U.S.
If you know Joe Mimran from his past retail successes, you know he has the Midas touch when it comes to fashion. He has wonderfully balanced price and hot fashions with Joe Fresh.
It’s this type of store partnership that J.C. Penney and other department stores need to revitalize the dreary department store concept. Joe Fresh just has to hope they won’t be the only ones jumping in with both feet with JCP.
For many months J.C. Penney (JCP) has used layoffs as a means to leverage a higher percentage of shoppers to employees in their stores. This agreement to add new and market-desirable inventory to the shelves may be seen as a gamble within JCP’s management elite corps, but should provide worthwhile and truly positive results. Kind of like a breath of fresh air to the troops for a change.
The awareness and execution provided by JCP is positive. The positioning for Joe Fresh is a risk. However, Sephora has seemingly overcome it; perhaps Joe Fresh will also.
I’m no fashion maven, but this deal has a promising feel.
The Joe Fresh brand may be just exotic enough — a step more edgy than the square wardrobe basics that have traditionally made up most of the JCP offering. And because of its incumbent popularity north of the border, American shoppers can feel like Joe is a badge of individuality.
As a semi-exclusive line, Joe may help JCP realign its price image too, justifying some healthier margins. The flagship stores in major markets should help support that value perception.
I’d counsel the Loblaw folks to resist all pressure to make Joe Fresh blander or broader in its appeal, even if the rest of J.C. Penney seems to go that way. Run like hell from the Big Middle! Let JCP find other brand partnerships that target other shopper segments.
I read thru these comments, ready to — if not not “talk sense into people” — (then) at least offer a different take on the idea, when I came across Ted’s remarks. Yes…and then some. I don’t see what’s in it for either party: JF debuts in a retailer that has managed to move from “troubled” to “really troubled,” and said really troubled retailer picks up an obscure brand that sounds like a food product (and is owned by a grocer). Of course I’m neither in the target demo nor particularly fashion savvy, but I’m thinking the optimists here have put hope over experience.
NOW I finally have a reason to shop Penney’s. Gosh, I am a BIG Joe Fresh fan. Loblaws is set to invade the US again, but this time, not from Orchard Park, NY as it did over 75 years ago as Loblaws, Del Farm, Big D and National Tea, but with a band of hot-off-the-rack Joe Fresh clothing lines.
JCP has had such very bad luck in recent weeks; it’s time for some good news. Throw out the tired old JC Penney men’s line and do a Joe Boxer like Kmart does.
And PLEASE, have a sales associate operate the boutique.
Joe Fresh is fun and appealing to a growing group of loyal shoppers for great repeat business — solid potential for US market. Allowing Joe Fresh to maintain their fun and interesting fast fashion concepts inside a struggling business will challenge all to keep it fresh and moving.
At Loblaws, grocery shoppers spin through the JF area on their regular store visits, expecting to see something new, and keep friends posted on what they see and like. Keeping the momentum going in this new JCP venue will require a fresh new marketing approach and great execution.
I visited Joe Fresh in New York recently and it seemed way too conservative for that market. While other shops on the same strip (e.g. Uniqlo, Zara) were crowded, Joe Fresh was not. It would probably do better with a more conservative JCP customer. I hope so, because otherwise this will turn into another of retail’s big beat-ups.
WHAT a GREAT deal! JCP has had some problems of late but this has WIN-WIN written all over it and JCP probably can do this Very Well!!! You Go JCP — show us you’re not dead just yet!
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What a great move for Joe Fresh from a distribution POV. BUT … I do think the Joe Fresh brand should begin to seed the U.S. market with branding and perhaps some pop-up retail in order to create some middle market demand. If they have to rely only on the current base of JCP shoppers for volume, they could be sorely disappointed. They’re likely to be up against Target for share of shopper wallet.
There has been plenty to criticize about the JCP “reinvention” but the Joe Fresh partnership can be a win. It does feel like the Topshop/Nordstrom partnership on a bigger scale.
But, as with everything related to JCP these days, there are some unanswered questions about execution:
1. How much market share will JCP continue to bleed before the “reinvention” is in place?
2. The process is unfolding at a snail’s pace, with the changes in place by the end of 2015…can JCP move any faster?
3. The announced shops are skewing “young” so far…will the holistic effect of the “new” JCP provide anything that appeals to its core consumer?
One more caution: Don’t be surprised to see other collaborations (Uniqlo shops inside Macy’s as a “hypothetical”) that can be executed at a faster rate of speed.
The addition of Joe Fresh is a good move for both JCP and Loblaw. JCP gets to vend some cool, low-cost fashion and Loblaw gets instant US market penetration.
I like the ‘back to the future’ department store as specialty retail model that Ron Johnson is putting together with Joe Fresh and other brands. It’s refreshing and easy to understand and shop from a customer perspective. He has created a great stage for what should be a successful retail show.
My only hope is that he puts together a service model that’s tightly wrapped around the fitting room. Because as I’ve said a million times, no buying decision is made until the try-on is done. I look forward to seeing how he orchestrates the in-store service strategy of this re-invention project.
The inclusion of Joe Fresh into JCP is a great move on the part of JCP. It is an even bigger shot in the arm for Loblaws. As part of the re-inventing of JCP, the former John’s Bay brand has become a very tired brand and a new and fresh (no pun intended) brand was needed. So given the debut on the streets of New York City was very good, it is now the right time to make the brand available to the rest of the country. A positive move and marketing initiative for JCP, however, this is only one where many are needed.
Joe Fresh is one more plank in the new J.C. Penney platform. The success of Joe Fresh is at least partially dependent on the rest of the reinvention of the retailer … as well as a general revival of this style of retailing. Many Penney’s are found in malls, which are losing sales to etailers and other formats. Joe Fresh may have had more success as a standalone in strip malls than as an in-house brand of J.C. Penney, because while Penney’s guarantees some traffic, it also limits the audience too.
I can see what’s in this for JCP, but it seems pretty risky for Joe Fresh. Yes, they get instant mass distribution, but the JCP “reinvention” is so riddled with issues that it very well may not end up being a plus in the long term for Joe Fresh.
First, is the JCP customer really the Joe Fresh customer? JCP’s demo is much older. Will a younger demo go into JCP for Joe Fresh? Or will the JCP connection taint Joe Fresh in younger customer’s minds?
Second, I believe JCP is going to end up having to revert to its promotional pricing strategy. Is Joe Fresh willing to go there, with all that implies for brand integrity? Or are they planning on being an oasis in a sea of sale toppers?
We’ve been through this with other brands and other department stores. The pattern is that the brand gets swallowed up by all of the issues with the department store model, and brand integrity is sacrificed for mass distribution and sales volume. Is this really where Joe Fresh wants to go?
If J.C. Penney actually succeeds at executing their new strategy and surviving long term, then you can bet on Joe Fresh becoming a powerful brand in the U.S.
If you know Joe Mimran from his past retail successes, you know he has the Midas touch when it comes to fashion. He has wonderfully balanced price and hot fashions with Joe Fresh.
It’s this type of store partnership that J.C. Penney and other department stores need to revitalize the dreary department store concept. Joe Fresh just has to hope they won’t be the only ones jumping in with both feet with JCP.
For many months J.C. Penney (JCP) has used layoffs as a means to leverage a higher percentage of shoppers to employees in their stores. This agreement to add new and market-desirable inventory to the shelves may be seen as a gamble within JCP’s management elite corps, but should provide worthwhile and truly positive results. Kind of like a breath of fresh air to the troops for a change.
The awareness and execution provided by JCP is positive. The positioning for Joe Fresh is a risk. However, Sephora has seemingly overcome it; perhaps Joe Fresh will also.
I’m no fashion maven, but this deal has a promising feel.
The Joe Fresh brand may be just exotic enough — a step more edgy than the square wardrobe basics that have traditionally made up most of the JCP offering. And because of its incumbent popularity north of the border, American shoppers can feel like Joe is a badge of individuality.
As a semi-exclusive line, Joe may help JCP realign its price image too, justifying some healthier margins. The flagship stores in major markets should help support that value perception.
I’d counsel the Loblaw folks to resist all pressure to make Joe Fresh blander or broader in its appeal, even if the rest of J.C. Penney seems to go that way. Run like hell from the Big Middle! Let JCP find other brand partnerships that target other shopper segments.
I read thru these comments, ready to — if not not “talk sense into people” — (then) at least offer a different take on the idea, when I came across Ted’s remarks. Yes…and then some. I don’t see what’s in it for either party: JF debuts in a retailer that has managed to move from “troubled” to “really troubled,” and said really troubled retailer picks up an obscure brand that sounds like a food product (and is owned by a grocer). Of course I’m neither in the target demo nor particularly fashion savvy, but I’m thinking the optimists here have put hope over experience.
NOW I finally have a reason to shop Penney’s. Gosh, I am a BIG Joe Fresh fan. Loblaws is set to invade the US again, but this time, not from Orchard Park, NY as it did over 75 years ago as Loblaws, Del Farm, Big D and National Tea, but with a band of hot-off-the-rack Joe Fresh clothing lines.
JCP has had such very bad luck in recent weeks; it’s time for some good news. Throw out the tired old JC Penney men’s line and do a Joe Boxer like Kmart does.
And PLEASE, have a sales associate operate the boutique.
Joe Fresh is fun and appealing to a growing group of loyal shoppers for great repeat business — solid potential for US market. Allowing Joe Fresh to maintain their fun and interesting fast fashion concepts inside a struggling business will challenge all to keep it fresh and moving.
At Loblaws, grocery shoppers spin through the JF area on their regular store visits, expecting to see something new, and keep friends posted on what they see and like. Keeping the momentum going in this new JCP venue will require a fresh new marketing approach and great execution.
I visited Joe Fresh in New York recently and it seemed way too conservative for that market. While other shops on the same strip (e.g. Uniqlo, Zara) were crowded, Joe Fresh was not. It would probably do better with a more conservative JCP customer. I hope so, because otherwise this will turn into another of retail’s big beat-ups.
WHAT a GREAT deal! JCP has had some problems of late but this has WIN-WIN written all over it and JCP probably can do this Very Well!!! You Go JCP — show us you’re not dead just yet!