A Tale Of Two Retailers: JC Penney and Mango Form A Collaboration

JC Penney is still continuing to revamp with its many collaborations, this time with European fast-fashion chain Mango. Penney has weathered the recession well, recently reporting stronger-than-expected Q3 earnings, despite a comparable-store sales decrease of 4.6%, and raised its financial forecast for the full year.

The new line will be called MNG By Mango, and is set to debut next fall in 75 stores, ramping up rapidly with 600 more by Fall 2011. It is set to be Penney's largest contemporary brand, and the largest launch ever of any fast-fashion concept.

MNG by Mango will be supported with an aggressive marketing campaign to include online, digital, TV and direct mail. Recent launches for the department store have included housewares line Cindy Crawford Style and Olsenboye, from Mary-Kate Olsen and Ashley Olsen, in its junior department.

"Mango will be a nice addition to its portfolio of brands," says Erika Maschmeyer, a senior research analyst with Robert W. Baird in Chicago, "but on its own, it won't be any sort of game changer."

Barcelona-based Mango, known for its fast runway-to-stores turnaround, is a competitor of Zara and H&M. It has around 1,300 stores in 94 countries, including 12 in the U.S.

"We have only begun to capitalize on the great desire for Mango in the U.S.," the company says in the joint release. "JCPenney is the perfect match for us to take advantage of the opportunity we see for the MNG by Mango brand in this market."

JC Penney will be Mango's only department-store placement.