JCPenney focuses on driving store traffic
August 11, 2017,
Plano, Texas – JCPenney execs outlined strategies to get consumers into stores during its Q2 call this morning.
- In-store pickup for online orders, which is now driving more than 600,000 visits to stores each week. Penney recently announced all orders will ship for free to stores, and 80% of store inventory is now available for in-store pickup.
- Continuing to rebrand in-store salons. Salon customers shop the store twice as often each year as non-salon customers, according to chairman and ceo Marvin Ellison.
- Rolling out more Sephora shops, which will yearend will be available in 75% of stores.
- Expanding the amount of space devoted to mattress. More than 300 are in the process of rolling out now.
Home was a strong category during the quarter, with major appliances leading the way, the company reported. The home department currently occupies about 20% of the store space and generates 13% to 14% of sales.
In terms of financials, Penney outperformed expectations on the top line and missed on the bottom line.
For the quarter ended July 29, sales rose 1.5% to $3.0 billion, with comp down 1.3%. Net loss was $62 million vs. a net loss in the year-ago quarter of $56 million.
For the fiscal first half, sales slipped 1.1% to $5.7 billion. Net loss widened to $242 million from $124 million in last year’s first half.
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