Polo, JC Penney Tie the Knot for Biggest Penney Launch Ever

Polo Ralph Lauren and JC Penney have teamed to launch American Living, an extensive, relatively upscale line of clothing and home furnishings.

The American Living brand, though being supplied by Polo Ralph Lauren, will not bear the brand name or the name of any sub-brands, writes The New York Times.

Robert K. Passikoff, president at Brand Keys, says the project is similar to Wal-Mart’s recent, failed efforts to inject a higher quality image to its clothing lines. Simply offering more stylish, expensive clothing was not enough.

“May I remind you that Wal-Mart ran ad pages in Vogue?” he is quoted as saying. “The ads were lovely, but no one would buy the clothing.”

The American Living brand will sell for about 15 percent more than the highest-priced, private label products now sold at Penney’s under brands such as Concepts by Claiborne, Joneswear and Liz & Co.

The ad campaign for the new line is being called JC Penney’s largest launch campaign, though spending for the initiative was not disclosed, according to Adweek. Ads will air first on Univision, in Spanish, on Feb. 21, followed by a full debut during the Oscars on Feb. 24. Ads will continue to run for a month during prime time TV. There will also be a 60-second cinema spot. Print, direct mail, in-store promotions and a website support.

For the third quarter ending Nov. 3, JC Penney saw sales of $13.5 billion, up 1.7 percent over the same period the previous year, at a time during which many retailers are feeling a crunch due to a sluggish economy.

Same store sales fell 1.9 percent in January compared with the same month in 2007.

The retailer spent $310 million in measured media for the first 11 months of 2007 (per Nielsen Monitor-Plus).

Last year at this time, JC Penney launched a campaign that sought to reach consumers who saw the retailer as un-hip. The retailer is hoping to find a balance between value-driven shoppers and those who are more style-focused.