VERA WANG DESIGNING FOR KOHL’S

Kohl’s must want a piece of the designer fashion action so they adopted a Vera Wang collection of accessories and home products.

Not in Kansas? Kohl's moves into new territory with its 'Simply Vera' line from Vera Wang.

 “The campaign highlights a gamble for both the Menomonee Falls, Wis., retailer and Ms. Wang. Kohl's is racing to catch up with rivals such as J.C. Penney, Target and Hennes & Mauritz's H&M, which have introduced cheap-chic clothes by big-name designers. But with Simply Vera, Kohl's will be promoting some of the most expensive merchandise on its racks. That could intimidate the retailer's core, loyal shopper, who normally comes into Kohl's looking for discounted or moderately priced clothing.”

For Ms. Wang, the association with Kohl's could tarnish her upscale image. "Vera has a lot to possibly lose," says David Wolfe, creative director of Doneger Group, a retail consultancy in Manhattan. "Vera's customer might be surprised to find her 'selling out' her snob appeal."

Kohl's has had success offering more contemporary and fashion-forward merchandise. In May, the company reported a 3.9% increase in same-store sales in its first quarter, saying new brands with skateboarder Tony Hawk and Elle fashion magazine were gaining momentum. The Elle line has done so well that Kohl's is rolling it out in 500 stores, up from the 300 it had planned.

It is part of the company's move to compete for dollars in the midrange market, which has attracted high-end and low-end shoppers toward the middle.

Before signing Ms. Wang, the retailer surveyed 2,000 customers across the country and found that 70% were aware of Ms. Wang. "Our customer is really not intimidated by fashion," she says.