Avon Calling

The newest vendor shop in JCPenney and Sears stores may be one for that notorious non-in-store merchant, Avon Products. The purveyor of women's beauty and related products, which has done $5.3 billion a year selling exclusively through 3 million sales representatives in 137 countries, has confirmed that it is in negotiations with the two huge retail organizations. Once terms are negotiated, Avon plans to launch a new product line at Penney's and Sears in the second half of 2001.

According to Avon president and ceo Andrea Jung, the strategy would enable Avon to access customers that the company is not currently reaching. “'The store-within-a-store concept is an evolution of Avon's 115-year heritage of building relationships with women in innovative ways,”'said Jung. “'While direct selling will always be our principal sales channel, expanding access to new customers will help accelerate top-line growth.”'

The products to be sold in the vendor shops would be a completely different product line from the one sold by Avon representatives in the company's sales brochure, Jung said. “'The products in the Avon brochure will always be the domain of the Avon Representative.”'

The store-within-a-store strategy and the new product line will be discussed at Avon's upcoming investor conference on September 27. Avon's current product lines include such brands as Anew, Skin-So-Soft, Avon Color, Far Away, Rare Gold, Perceive, Women of Earth, and Avon Skin Care. The company also markets an extensive line of fashion jewelry, apparel, gifts and collectibles.