• by Sarah Mahoney , December 1, 2009

JCPenney says it has signed a deal with Mango, one of Europe's leading fast-fashion chains. The new line, which will be called MNG By Mango, is set to debut next fall in 75 stores, rolling out to 600 more by Fall 2011.

The Plano, Texas-based Penney says the new line will be its largest contemporary brand, including career and casual sportswear, as well as accessories, and the largest rollout ever of any fast-fashion concept. It plans to sell the clothing in 1,000-square-foot areas, designed as centerpieces to its contemporary departments, and adjacent to its Sephora cosmetic boutiques. Penney says it will back the Mango launch with an aggressive marketing campaign, which will include online, digital, TV and direct mail.

Penney has been steadily adding to its store-brand stable, including recent launches like Cindy Crawford Style, a home line, or Olsenboye, from Mary-Kate Olsen and Ashley Olsen, in its junior department. "Mango will be a nice addition to its portfolio of brands," says Erika Maschmeyer, a senior research analyst with Robert W. Baird in Chicago, "but on its own, it won't be any sort of game changer."

Mango, a favorite for its fast runway-to-stores turnaround, competes with chains like Zara and H&M. Based in Barcelona, it has some 1,300 stores in 94 countries, including 12 in the U.S. (Penney will have the department-store exclusive.) "We have only begun to capitalize on the great desire for Mango in the U.S.," the company says in the joint release. "JCPenney is the perfect match for us to take advantage of the opportunity we see for the MNG by Mango brand in this market."

Maschmeyer says consumers have increasingly come to expect such partnerships from retailers -- a trend started by Target, and followed by Kohl's. "Stores pretty much have to do it, to keep up," she says, "and Penney has done a good job of adding real fashion names, whereas Kohl's has focused on more traditional lines."

With its niche of serving moderate-income consumers from its mall base, "Penney is in a tough spot," she says. "It's a long road ahead in terms of convincing hardcore fashionistas to shop at Penney, but this does help its case."

Several weeks ago, Penney reported stronger-than-expected third-quarter earnings, despite a comparable-store sales decrease of 4.6%, and raised its financial forecast for the full year.