Meet the new JCPenney: Remodels, tech upgrades are part of the department store revival plan
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JCPenney announced on Thursday an aggressive plan to return to prominence in the department store sector. The private company said it has a self-funded reinvestment plan and customer value proposition aimed at fueling long-term growth and increasing customer loyalty and frequency.
JCPenney plans to reinvest more than $1B into the business by FY25 to further improve customer experience and operational efficiencies. The mall store operator said the reinvestment builds on significant progress in FY22, including the launch of JCPenney Beauty, exciting product collaborations, completed store refreshes and improved digital shopping. The Dallas-based company is also introducing a reinvigorated customer strategy, âMake It Countâ, to remind customers of JCPenney's commitment. The new version of JCPenney will offer a broad portfolio of fashion, apparel, home, beauty and jewelry from national and private brands and provides personal services including salon, portrait and optical. The company has also enhanced its digital capabilities and brought tech features into stores.
"JCPenney is on strong financial footing and is steadily increasing relevance and frequency with our core customers," noted JCPenney CEO Marc Rosen on the rebirth.
JCPenney filed for Chapter 11 bankruptcy protection in 2020 and was then acquired within a few months by Brookfield Asset Management (BAM) and Simon Property Group (SPG) for around $800M in cash and debt. The deal was approved by the U.S. bankruptcy court for the Southern District of Texas two months later. JCPenney currently has about 650 stores after shuttering about 25% of its store base. The company's debt position is down to $500M.
JCPenney is looking to grow during a rough stretch for the department store sector. Compared to five years ago, department stores as a group have lose significant market share to Amazon (AMZN), Walmart (WMT), and Target (TGT) - both online and in stores. Over the last 52 weeks, Macy's (M) is down 31% and Nordstrom (JWN) is off 10%, and Kohl's (KSS) is 5% lower. However, Dillard's (DDS) has run up a 22% gain over the last year.

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