JCPenney- 3 Indicators They Aren’t Ready to Turn Out The Lights Just Yet

As I have made my way driving across the northern regions of the great state of Texas, I’ve passed several small towns celebrating their JCPenney Store’s centennial.  What an amazing piece of history retail plays, and the future is still incredibly bright.  “What do you think the future of retail is,” I have been asked by each and every family member I encounter over the past week, “things aren’t looking good.”  My response:

Retail’s fate is not grim.   Not as grim as media would lead you to believe.

Despite Closings, Profit Was Reported for 2016

The Headlines Read: 138 JCP stores closing, 5,000 out of work!  What those headlines left out was the fact that stores were not closing due to a loss of business, but instead as a part of the exciting revitalization retail is facing with the great omnichannel presences.   The media also did not include that of these 5,000 out of work there will be a voluntary early retirement program offered.  And despite what the headline implies, JCP actually reported their first profit since 2010 this past year.

The stores closing are the smaller stores, ones that take allot of overhead versus the amount they are actually earning for the company.  Cutting those expenses will help JCP move forward to bigger places.  So what’s the big picture?  What’s the game plan?  Here are just a few of the big details:

Revamping Salons

Salons are receiving a full overhaul from appearance, to services, to quality.  First off they will be a full service salon, and second they are looking to attract the most talented hairstylists by giving them full control of their practice and benefit packages without having to rent the booth.  For customers they want to continue to expand their omnichannel presence, allowing customers to book appointments from their phones with the JCP In Style App.

The idea is the make JCP an all around service.  Receive your beauty advice from Sephora, get your hair and nails pampered at the salon, and leave with a hot new outfit all in the comforts of one department store.   I love this idea, bringing us back to the original origins of Department Stores, a full service customer experience but still at JCP prices.

Expanding to Appliances

About a month ago my husband and I went shopping for a refrigerator, considering that was the only appliance that would not fit on the moving truck.   With the convenience of the many errands we can accomplish at The Florida Mall we wandered into Sears.  I looked at my husband again with great frustration, “why keep clothing?  Jewlery?  If you are the anchor store that offers appliances, why not doubled down on home furnishings and services?   It’s obviously a booming business as we watch the sales for Home Depot and Lowes maintain their speeds through the rough waters of retail change.

JC Penney sees the same opportunity, 2/3 of homes in the U.S. are 30 plus years old and they will be taking their share of those home improvements.  Presently, JCP is in talks with big name brands like Samsung to set up retail and service agreements.   This new expansion will be gradual, and is focusing first in the towns/areas that have already lost their local Sears.

So for the 23% of you who voted JCP on this Shop Girl’s Poll, there is still hope yet!

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J

References:

https://globenewswire.com/news-release/2017/04/11/958562/0/en/JCPenney-Adds-Volume-To-Its-Stores-By-Transforming-More-Salons-To-The-Salon-By-InStyle.html

http://www.cnbc.com/2017/04/11/weak-apparel-sales-are-sending-retailers-into-home-and-beauty.html

http://ir.jcpenney.com/mobile.view?c=70528&v=203&d=1&id=2249169

https://www.fool.com/investing/2017/03/14/jc-penney-wants-to-keep-gaining-from-sears-losses

20 thoughts on “JCPenney- 3 Indicators They Aren’t Ready to Turn Out The Lights Just Yet

  1. Arlee Bird says:

    My wife and I are fairly regular shoppers at Penney’s. She buys all my underwear there and I tend to get a lot of clothes there as well. It’s good for housewares as well. I don’t think our local Penney’s is in any danger of closing as the place is always packed. When my daughters were still kids living at home I’d buy most of their school clothes there as well. I have fond memories of outfitting their back to school wardrobe mostly at the Penney’s store.

    Arlee Bird
    Tossing It Out

    Liked by 1 person

  2. lsgaitan23 says:

    I was talking about this very issue with my adult ESL class last week.Several mused that the a new hybrid model might emerge, a retail showroom type of setting where you could see and touch the products, but would then order online. Hmm. After the big hit bookstores took from Amazon, brick-and-mortar book shops are springing up again because the experience cannot be duplicated online!

    Liked by 1 person

  3. Jennifer says:

    I remember when my local mall opened in the 70’s with JCP and G. Fox as the anchor stores. Not only was there a hair salon, but there was a restaurant. It was my brother’s first job working there. G. Fox is now Macy’s and JCP closed and Boscovs took over the location.

    Liked by 1 person

  4. Austin says:

    I thought I read that the JCP at the Bangor Mall was going to close. Too bad because it’s a cool store and one of the largest in the mall. Of course, the Bangor Mall is like a ghost town lately, and I don’t know how many ghosts shop at JCP. 🙂

    Liked by 1 person

  5. Shallow Reflections says:

    I’m glad to hear the ‘rest of the story’ regarding JCP. My mother and I shopped at Penney’s oh so many years ago and it was her go-to store until her death in 2007. I can’t think about JCP without thinking of my mother and it makes me tear up to think of the chain closing. So I’m happy to know they are thriving and embracing the changes necessary to succeed. I am also delighted to know they may pick up the appliance slack if Sears is no longer available to me as we have bought all our appliances at Sears and would be lost without them.

    Liked by 1 person

    • shopgirlanonymous says:

      I’m truly heartbroken over Sears. When I lived in the malls that was our necessity shop, every store opening or store closing there would be some tool we would need and Sears kept us from wasting too much time trying to leave the mall and come back.

      Liked by 1 person

  6. Thrifty Guardian says:

    My mom worked for one of the JCP stores that recently closed and it wasn’t surprising. They were onto something with the “no coupons, low prices” deal they attempted, they just didn’t go about it the right way. Sad. I loved JCP for a long time, but they’ve gone downhill fast if the ones I’ve seen recently are any example… 😦

    Liked by 1 person

    • shopgirlanonymous says:

      Just a balancing act. Once it all is said and gone they won’t all be gone…but we definitely will have less options at the end of the day. Which could prove a hinderance on our pocketbooks once all is said and done and the competition has been depleted.

      Like

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