JCPENNEY TO BOLSTER PRIVATE BRAND OFFERINGS AND TECHNOLOGY FOR 2017
At its 2016 analyst meeting on Wednesday, August 17, in Las Colinas, Texas, J. C. Penney Company, Inc. presented a three-year plan for accelerated growth and outlined its financial expectations for improved performance beyond 2017.
To deliver on its value proposition to shoppers, the company will drive private and exclusive brand penetration up to 70 percent of total merchandise sales by 2019. This target will be achieved by eliminating labels that are no longer relevant and expanding popular existing brands to additional categories. To further differentiate JCPenney from brick-and-mortar and online competition, the company will maximize opportunities in special sizes, refreshing the home store, and expanding its beauty offerings.
JCPenney is also amping up its omnichannel execution in order to connect with customers how, when and where they prefer to shop. A major component of this strategy is mobile, which is the company’s single greatest touch point with digitally-savvy shoppers. Bolstering this approach is a newly redesigned JCPenney app that enables customers to locate items, apply coupons and access their JCPenney Rewards more easily. Shoppers can also complete their jcp.com purchases with a variety of convenient shipping and pickup options, resulting in over 50 percent of online orders stemming from or leading to an in-store experience.
To efficiently fill jcp.com orders, JCPenney has made significant investments in state-of-the-art systems that support an enterprise-wide fulfillment strategy to minimize markdowns and improve customer service. In addition to a network of three direct logistic facilities, 250 stores are now capable of filling jcp.com orders with store inventory and shipping directly to customers. This added fulfillment option allows the company to meet customer demand for a particular style, color or size, while delivering orders faster than ever.
“Since becoming CEO a year ago, the team and I have made considerable progress balancing the art and science of retail by improving our execution in omnichannel, marketing, store operations, supply chain and merchandising,” said Marvin R. Ellison, chairman and chief executive officer of JCPenney. “There is still much work to do, but I am confident that our focus on sales growth, new technology and expense management will continue to accelerate our turnaround and create shareholder value.”
