US retailer pinching our Penneys

The Penney site offers quality merchandise at highly competitive prices, listed in Australian dollars. Goods will be delivered within 3 weeks at transaction costs starting at $29.

The key to the success of the online offer would appear to be the returns process as this has caused buyer reluctance among Australian customers in the past.

The launch is a warning shot across the bows of Australian retailers. Local retailers have scant online offers, but here is an offshore merchant wanting Australian dollars.
Historically, Australians have been slow to adopt mail order retailing. After all, almost everyone lives within an hour of a department store.

Pretty much worldwide, people aged between 25 and 35 are the group most likely to use the web for purchasing. The Gen Y familiarity with online shopping, educated by eBay, has resulted in a generational shift away from our traditional laggardness.

However the JCPenney offer is hardly fashion forward and while Gen Y might be up with the technology, I suspect this is not the product range for them. Gen Y and Gen X tend not to be interested in pants with a choice of khaki, bone, cement, stone, ecru, camel, beige or greige.

Maybe they can show their parents how to buy online.

Rob Lake is a Director of Orex Recruiters, a head hunting firm that specialises in finding middle to senior retail management. He also publishes Brandish Retail Intelligence, a free fortnightly newsletter about all things retail.