Joe Fresh is pulling out of 200 JCPenney (NYSE:JCP) stores in the United States, ending its focus on the store-within-a-store concept. Joe Fresh will instead focus on building stand-alone stores and expanding internationally.
Just two years ago the brand debuted in 683 U.S. department stores under the direction of former CEO Ron Johnson, reported the Financial Post.
When Johnson's run as CEO ultimately failed in 2013, many brands left JCPenney. Joe Fresh stayed in 200 store-within-a-store locations, but opened six stand-alone stores in New York.
The current agreement between Joe Fresh and JCPenney expires in January.
"This decision is driven by changes to our respective growth strategies," Mario Grauso, president of Joe Fresh, told the Financial Post. "Going forward, Joe Fresh will focus on investing in our stand-alone store network and e-commerce, expanding our international partnerships and continuing to strengthen our core Canada business."
Moving forward, Joe Fresh will use the Soho boutique as its model for more stand-alone stores. At 7,500 sq. ft., that means future Joe Fresh locations will be about half the size of the flagship on Fifth Avenue.
Joe Fresh is in the middle of an aggressive expansion plan, which includes three partnerships to expand into 23 countries across the Middle East, North Africa, South Korea and Europe, with 141 new stores. Thus far, the retailer has opened 15 of 25 planned stores in Asia, the Middle East, Mexico and Central America.
In the midst of brand changes, a few months back Joe Fresh founder Joe Mimran announced he was leaving the company, passing the torch to Grauso.
-See this Financial Post article
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