Penney takes lifestyle approach
By Carole Sloan -- Furniture Today, June 22, 2008
PLANO, Texas — Lifestyle merchandising will be a major new approach for the home furnishings division at JCPenney, and the retailer's new Linden Street brand will be the launch vehicle.
Making its debut in July, Linden Street will be featured in cross-merchandised presentations in the home departments, said Jeff Allison, executive vice president, home.
The company refers to these presentations as “lifestyle zones,” which Allison said will deliver a merchandising impact he likens to “the chocolate syrup with the cherry on the top.”
In home goods, the company has tested lifestyle merchandising (as opposed to showing product strictly by category) with its Chris Madden and Simply Green brands. For example, it brought together a Chris Madden bedding ensemble from the home textiles department, set on a Chris Madden bed, with a nightstand, lamp and accessories.
In furniture, a living room could be teamed with accessories, accented with decorative pillows and throws, and coordinated with window coverings — all in a single brand with cohesive styling.
“There could be 15 or more product classifications featured in a single bedding vignette for Linden Street,” Allison said.
He expects that about half of Penney's furniture will be shown in lifestyle presentations and about half will be in product category classifications.
In the stores, there will be “20 or so lifestyle zones” for Linden Street, as well as feature areas the company refers to as “hot zones, hot spots, corners on aisles and seasonal pads.” One half or more of these in July will be dedicated to Linden Street in the home furnishings departments.
Allison said he believes Penney can succeed with lifestyle merchandising “because the brands now have design integrity across all departments. A year ago, we couldn't put it together. Now we're building seasonal assortments across the board that are styled out together. We're using the several years of experience in lifestyle merchandising from ready-to-wear.”
Penney calls the Linden Street styling “neo-traditional,” its term for products that are cozy, casual, familiar, comfortable, fresh and friendly. There was a void in this style segment in furniture, said Allison. The retailer says its American Living and Chris Madden lines are traditional, while other furniture product fits into the store's two other style genres: conservative and modern.
While the physical placement of product across departmental lines is relatively easy, the selling of these multiple product segments in one department presents challenges. “We will try different incentive plans for our salespeople,” said Allison.
Meanwhile, JCPenney is looking at expanding its furniture footprint. Of its more than 1,000 stores, 163 now have furniture departments and Allison would like to boost the number to 200, although he hasn't set any schedule.
Penney also will test furniture in its “B” off-mall stores, a 180-degree flip from the strategy set when the off-mall program began several years back. Three off-mall stores to open next year — in San Antonio, Avon, Ohio, and Tucson, Ariz. — will have furniture departments of 10,000 square feet. Linden Street and Chris Madden brands will be featured, along with sleep shops and upholstery.
Other furniture opportunities will arise in five “proof of concept” stores, which the retailer uses as a testing ground, including one to open in Manhattan next year just south of Macy's Herald Square store. The stores will include a Linden Street furniture concept shop and an assortment of bedroom, dining room and living room, Allison said.
He said Linden Street also is expected to be a big product in the company's direct business of Internet and catalog sales.
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