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Caribou Coffee pulls out of JC Penny partnership

RBR Staff Writer Published 18 March 2013

US-based quick service chain Caribou Coffee has pulled out of a proposed plan to unveil outlets inside JC Penney stores across the country.

The two companies, Caribou and JC Penny, had agreed to a deal in 2012 to expand the former's presence in the country by opening outlets in JC Penny stores.

Caribou chief executive officer Mike Tattersfield told Bloomberg that the two companies will not move forward with the partnership at this time.

Tattersfield however, declined to offer a reason for the pull out.

JC Penny's agreement with Caribou was part of its plans to transform the department stores into a collection of boutiques peppered with eateries, or a kind of mall within a mall.

Caribou Coffee meanwhile has unveiled outlets in other retail stores, such as Jewel-Osco, Lunds and Byerly's grocery stores in Minnesota and at Hy-Vee markets in the Midwest region of the US.

The coffee chain has 610 outlets in the country; including 202 franchised owned and is targeting a 10-20% growth for the current fiscal.

JC Penney, meanwhile, operates over 1,100 stores in the US and posted a 25% decline in annual sales to $13bn for FY2012.