Polo's short and long term profits will benefit from Penney's launch of American Living Brand.

Implications: Polo's approach to building its own brand business for Penney's is unique and will bring early profits vs. the normal 2-3 yrs to see rewards. By having the commitment to the brand, both space and OTB dollars further confirms Penney's will in fact market the brand both in advertising and at point of sale. Polo will further benefit by teaming up with a retailer in the product development process, by knowing what sells and how to tweak the assortments to maximize sales, turns and margins.

Analysis: Having headed up the Tommy Hilfiger product development process as the President of Mens for three years as well as product development of Federated (Macys) stores, I can truly state that it is a plus to know what the retailer needs and maximize the concept with the needs upfront of the process vs. after the fact. As time moves forward and this concept executes positively, it can negatively impact many vendors who are currently doing key items for retailers.