Another Look at Liz Claiborne

Monday 30th of August 2010 11:07:21 PM

Another Look at Liz Claiborne

A US conglomerate that sells several different brands of clothing cut a new deal in 2009 as part of its streamlining plan. Liz Claiborne decided to sell all of its brands and merchandise in JCPenney stores in order to increase its sales. Liz Claiborne brands Liz&Co and Concepts by Claiborne have been sold in Penney’s since 2007. The new agreement expanded the Liz merchandise line so it is also sold by JCPenney.

Liz Claiborne sells 30 different types of merchandise. The new agreement made JCPenney the exclusive seller of Liz brands. Liz company executives expected this to take Liz from a net operating loss to a profitable position at some point in 2010. The Liz Claiborne company also made a change in the distribution of the Liz Claiborne New York brand. The brand designed by Isaac Mizrahi is distributed GVC which is a merchandising operation that sells on television.

How is the new merchandising program working? Liz Claiborne has run into some difficulties selling its Liz brand clothes to the younger generation. This has led to disappointing sales in 2010. But the clothing company plans on making some style changes to correct the problem. JCPenney is popular with younger fashion buyers, so the company needs to address the fact its Liz brand is more appealing to older women.

Liz Claiborne has sold upper end fashions from sweaters to dresses for many years, but the company was having trouble before the recession began. The Liz brands sold in JCPenney stores are labelled as affordable better or best clothing.

The CEO of Liz Claiborne, Inc. is William McComb. He said at the time of the move, "There are few brands, across the American landscape, with the history, cultural significance, and consumer credentials as the Liz Claiborne brand. Today, we've taken bold steps that honour this amazing heritage. After two very successful years partnering with JCPenney, we decided it was time to take it to the next level. The commitment, the connection to the consumer and the brand stewardship JCPenney has brought to the table have been nothing short of outstanding. I have often talked about the need for strategies that allow companies to 'win with the winners' and this strategic alliance with JCPenney turns those words into action. By simplifying our model and working with them as our exclusive department store partner, we can reach the consumer and profitably manage the future of this iconic brand."