JC Penney to boost outsourcing

JC Penney Company Inc, the $38 billion US-based departmental stores, is keen on increasing apparel and textiles sourcing from India by more than five times to $800 million by 2009 compared with the current $150 million, said a senior company representative to Business Standard.

The new bullishness of the company comes in wake of the removal of the quota restriction on textiles.

The company currently sources clothing like shirts and suit tops for ladies, knitted items, sleep wear and carpets from India. In garments the company buys T-shirts, men's suits, blouses, denim bottoms, and sports jackets from India.

"India offers high quality and cost effectiveness for JC Penney. The company will be increasing its sourcing budget to $800 million by 2009 from the Indian region that include Bangladesh and Sri Lanka. Indian skill set is world class both in fashion and technology," he said.

"JC Penny is looking at vendors who can offer material at a competitive price in all situations," he said.

JC Penney is the second largest departmental store in the US after supergiant Wal-Mart. The company has tie-ups with over 30 vendors across the Indian region.