Of course, this headline isn't really news to anybody, but
reading WWD's more detailed report this morning on the shift of the
Liz Claiborne label to a
JCPenney exclusive brand, one thing is clear: The decision was
all about Macy's.
The failure of the relaunched line to gain traction at the behemoth department store chain sealed its fate, regardless of how it may have been selling in other stores like Dillard's or BonTon.
The article suggest that Claiborne executives were having difficulty getting the label into Macy's most favorable locations despite a large presence in the Herald Square Flagship. “You make your money in 20 percent of the doors and we weren’t in them,” Liz Claiborne CEO William L. McComb tells the publication. Without Macy's support, there was no possible future for the brand as a stand-alone business, and so the decision to make a deal with JCPenney was the only option for keeping the label alive. Penney's agreement includes an option to buy the Liz Claiborne name outright after five years, and the retailer will now replace its existing Liz & Co. and Concepts by Claiborne menswear branded lines with the Liz Claiborne and Claiborne labels.
While
Isaac Mizrahi's association with the name will continue via an exclusive arrangement with QVC, the
Claiborne by John Bartlett menswear label will be folded, and we don't yet know if the Spring 2010 collection he showed last month will be produced at all. Macy's was particularly resistant to carrying this line despite strong reviews from the press and the few customers who could get their hands on it, and only carried a small selection online.
As for Macy's, they don't seem to sorry to see the line go, having signed an exclusive deal themselves this week to take the famous
Ellen Tracy brand from the bridge down to the moderate department, and it is expected that the label will take up most of the lost Claiborne space and then some. Today's Macy's is actually comprised of the remnants of more than 60 local, regional and national department store chains (seriously, we counted them one day when we had too much time on our hands),
and the Claiborne news proves in the most high profile way that without their support, there is no future for any major moderate-level brand.
New Life for Liz: Claiborne Goes Exclusive to Penney’s, QVC (WWD)
Breaking: Claiborne by John Bartlett to Close (RACKED)