JC Penney unlaunches in Australia
It felt like only a few blogs ago we were blogging about the expensive shipping fees with the launch of JC Penney and there was some hefty discussion about this issue. So it’s sad that already they’ve closed their doors after only two months in Australia.
I’m sure it wasn’t the hefty shipping fees, but the miserable Australian dollar that played the biggest part in the demise of JC Penney.
I’m hoping now DJ’s and Myer don’t think they don’t have to play in this online space. There really is a niche there, but it needs to be onshore so postage is ridiculous and doesn’t take weeks. All online retailers should take a leaf out of Zodee’s book. I ordered some products over the weekend and they arrived on Monday – less than a day later. That’s the most impressive online experience I’ve had in a while…
June 3rd, 2009 at 6:18 am
It’s been a long time since I could bring myself to even look at JC Penney on the web, which is why I have not blogged in response to this earlier (does anybody care – probably not)!! It was not the Aussie $$ or the supposed “hefty” delivery costs involved in the demise of the Australian on-line store.
The business here was owned by a third party and was under contract to the US JCPenney. Enter a new JCP exec who decided to impress the bigboys on his first day – found a loophole in what should have been a watertight contract that my bosses signed for Asia & the Pacific – & decided to use it.
No wonder the economy in the US sux when they can so easily backtrack on a written/verbal/handshake deal!!
My bosses lost a squillion in set-up costs, upfront payments for the business name etc etc and the only option – a lengthy legal battle through the US courts. Dropped like a hot scone I’m afraid.