Joe Fresh and J.C. Penney partnership to end

Toronto -- Canada’s Loblaw Companies Ltd. said it will pull its Joe Fresh brand from J.C. Penney stores in the United States at the beginning of next year as it looks to concentrate on freestanding Joe Fresh stores and e-commerce.



Former Penney CEO Ron Johnson launched the value-oriented edgy fashion brand amid much fanfare in some 700 Penney stores in 2013 as part of his broader effort to transform the venerable department store chain. But it has been scaled back recently, and is currently available in only about 200 Penney locations. Some industry experts countered that the brand's cheap chic fashions were not a good fit for Penney customers.



According to a report by The Globe and Mail, the agreement to sell Joe Fresh clothing at Penney stores is due to expire on Jan. 30, 2016, and will not be renewed through mutual agreement.



Joe Fresh has six stores in the New York area, including a large, multi-level flagship on Manhattan’s Fifth Avenue, and a smaller, 7,500-sq.-ft. store in Soho. According to the report, the chain is evaluating its existing U.S. locations as it looks to determine its optimum store size for future U.S. expansion.



“The U.S. is a big market and we would like to have a successful business there over time," Loblaw president Galen Weston said at the company's annual meeting.