Summary
All the positives written in the article are pretty much on target. The American Living assortment across the classifications is quite impressive. The big problem is that the launch is coinciding with one of the worst economic downturns retail and the macro economy has experienced in the last 20 years.
Analysis
With Management touting all the positives I think it is incumbent to point out the down side of what should be an otherwise very positive initiative for both Ralph Lauren and J.C. Pennys.
The quality and design are very consistent and prove to have a good price value relationship. The problem is that with the Logo. I do not feel the consumer will get the connection between American Living and Ralph Lauren. The Logo is an American Flag and Eagle that evokes no association with the Polo Pony. There is nothing on the product telling the customer this is a Ralph Lauren designed and aspirational product.
Another potential problem is the price points. The consumer will undoubtedly see a cohesive life style brand that is preppy, clean and very different than the Penny’s core assortments. The question is: will the Penny’s customer understand a $50 price point for a knit polo shirt. The clothing is priced well above the Penny’s product and a handbag at $115 stood out in particular.
The risk is that the existing customer may not be able to make the jump to the new collections based on price point or not understanding the preppy collection and the new customer Pennys hopes will shop the line may just continue to shop the Polo brand. Time will tell and JCP is committed for the long run betting on the aspirational nature of American Living to move the existing customer up and attract a new more affluent clientele.
