Can't continue to afford A.B.S? Maybe it's time to consider J.C.P.

As the co-founder of apparel retailer Esprit de Corp and owner of the women's sportswear line A.B.S., Allen B. Schwartz has built a reputation around speedy translations of the latest runway trends for high-end consumers.

Now, he's teaming up with J.C. Penney on Allen B., a new women's apparel line designed exclusively for the department store.

"With its casual chic and cool California vibe, Schwartz's new line for J.C. Penney is perfect for hanging out or going out, showcasing the hottest trends with sharp looks that are stylish, fun, and vibrant," the retailer said in a press release today.

J.C. Penney describes the collection as having been created for its "trendy lifestyle customer," and says it will be sold starting next spring in 600 of their 1,038 stores, as well as via catalogue and online.

For Schwartz, Allen B. will be his least expensive project to date. A.B.S. is sold at retailers like Bloomingdale's and Saks Fifth Avenue, with dresses priced from $150 to $500; Allen B. cuts that range to $70 to $80. Still, that puts the new line at the top of the J.C. Penney price range.

Lately, Plano, Texas-based J.C. Penney seems intent on beefing up its higher-end offerings. Earlier this year, it launched American Living, a line of apparel, accessories, and home furnishings designed by Polo Ralph Lauren, that were priced higher than most items at Penney.

In a similar move, J.C. Penney announced last week that it will launch a line of clothing named I "Heart" Ronson, designed by Charlotte Ronson, who already has an her own eponymous boutique label.

If J.C. Penney is looking to entice their core shoppers with pricier options, it's an odd time to be trying that strategy.

"Trading up current customers in this economy would be a huge challenge," says Candace Corlett, a principal at WSL Strategic Retail, a marketing consulting firm in New York. "J.C. Penney launched American Living right after the Super Bowl, when gas prices started soaring, and prices were slashed on that within weeks."

But the problem with American Living might have been less about failing to appeal to core J.C. Penney customers and more about the designs not managing to lure higher-end shoppers into stores.

While now is an improbable time for the chain's loyalists to start splurging, it is a likely one for shoppers to consider trading down from higher-priced department stores like Macy's or Nordstrom. Given the right merchandise mix, high-profile new brands, and effective marketing, J.C. Penney could catch those migrating customers.

"The launch of Allen B. might just be an ongoing campaign to attract a more upper- and middle-income shopper," says Corlett. "If you look at it with a long-term eye, it's going to take more than one launch to attract that demographic."

As financial turmoil continues to drain money from discretionary spending, it's clear that consumers are redrawing their shopping habits. Corlett says research suggests that the stigma of buying lower-priced brands is fading across all ages and incomes.

Rather than aspiring to ostentatious lifestyles, it's becoming "cooler" to be frugal, according to the research, which was conducted for WSL Strategic Retail's "How America Shops" survey.

Retailers all across the spectrum are feeling the effects of that new parsimony. J.C. Penney reported a 12.4 percent decline in same-store sales in September, and announced that it is cutting its third-quarter earnings forecast. Nordstrom lost 9.6 percent in the same month, Kohl's dropped 5.5 percent, and same-store sales at Saks fell 10.9 percent.

Meanwhile, sales at Wal-Mart grew 2.4 percent as consumers continue to flee down market.

That across-the-board weakness and reshuffling of shopping habits is one reason why Britt Beemer, the founder and chairman of America's Research Group, thinks that now is a prime opportunity for any retailer with a smart strategy to gain market share.

Beemer stresses that the success or failure of Allen B. will be decided less by pricing than by whether or not the designs and merchandise mix make the grade.

"If you look at the successful products to come out in the last five years, it's all about how exciting the merchandise is," says Beemer. "The real question is whether J.C. Penney is doing something unique and different here.

"If the merchandise assortment is good, the line will do well," he says. "If it's bad, the line will fail. It's that simple."