After years of multi-retailer availability, fashion brand Liz Claiborne is changing its distribution strategy and positioning its namesake merchandise for sale exclusively at JC Penney. The decision affects hundreds of retail outlets nationwide, including Macy's and Dillard's.
Claiborne's shift is a direct result of the recession's impact on consumer shopping. Retailers, seeking reasons for shoppers to choose their stores, are asking brands for greater product exclusivity. To secure the Liz Claiborne deal JC Penney has agreed to give the brand a percentage of sales and a share of profits, unlike the typical relationship, where sellers buy merchandise from vendors for sell-through.
"The last year has proven that many axioms and proverbs written 20 years ago have been shattered," said Bill McComb, CEO of Liz Claiborne.
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