Ted Hurlbut

Penney on Fast Track with New Fashion Line

August 11, 2010

FROM RETAILWIRE:
J.C. Penney is looking to pick up the pace of its fashion sales with the launch of a new, exclusive line created for the department store chain by fast-fashion retailer Mango MNG Holding SL of Spain. Has fast-fashion become a requirement in retailing today or does the traditional means of sourcing apparel still work?      [more...]

I find that the more I learn about fast fashion, the more questions I have. The concept calls for frequent (timely) deliveries of styles in smaller quantities. This implies the goods must turn quickly. Clearly, prices are at hot-button price points to drive quick sell-throughs. Are these retailers also working at short markups to assure these quick sell-throughs? What does that suggest about the cost structures of these businesses, especially if "quick" means flying goods?

All of this raises the question in my mind of whether Mango's business model is workable for Penney. Obviously, if a retailer like Penney could profitably adopt a fast-fashion model, it would be to their competitive advantage. This is an alliance that bears keeping an eye on.