Avon to Sell New Line at J.C. Penney, Sears

Avon Products Inc., which has built its 115-year-old business on direct sales, plans to sell cosmetics at department stores for the first time. Avon said it will start selling the new line of cosmetics at J.C. Penney and Sears, Roebuck & Co. stores in mid-2001. The new line, tentatively called Avon Gold, will cost 30% to 50% more than Avon’s traditional products. A company spokesman pointed out that over the last 18 months the company has been selling products at 50 kiosks in malls across the country and found that 95% of sales were from new customers. Avon’s shares fell 63 cents to close at $40.56 on the New York Stock Exchange.