Redcats USA will cover all costs associated with creating and mailing several test catalogs designed to promote the Avenue brand for women’s apparel retailer United Retail Group Inc.
The first test mailings were scheduled to begin this quarter.
Results for tests lasting up to six months will be evaluated jointly, before the companies decide whether to establish a longer-term business relationship. One possible scenario could be a catalog licensing agreement.
The purpose of the tests is to assess the appeal of the plus-size brand for direct marketing and growth opportunities for both firms. Sales generated from the catalogs will not be included in United Retail’s reported sales.
“This test is risk free for United Retail Group,” said Raphael Benaroya, the company’s chairman, president and CEO in a statement.
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