JCPenney, seeking to strengthen its appeal to America’s cash-strapped working-class families, said it is holding its holiday pricing steady with a year ago and that 70 percent of its gift assortment retails for under $20.
In addition, Penney’s said it will display “record” quantities of its bestselling items and a more robust assortment of celebrity merchandise. That includes goods from the Martha Stewart Holiday Collection for bath essentials, quilts, tabletop and kitchen items as well as the Nicki Minaj perfume; a hairstyling service by Larry Sims, which utilizes products from Flawless by Gabrielle Union, and the men’s perfume Messi the Fragrance from soccer great Lionel Messi.
Related Articles
“A lot of people want to smell like Messi,” said Michelle Wlazlo, Penney’s chief merchandising and supply chain officer, during a media briefing Wednesday on Penney’s holiday strategy.
You May Also Like
Penney’s is aggressively calling out deals on the selling floors, most noticeably through its “Gotta Have It” pricing programming flagging scores of items at everyday low prices and diverging from the standard high-low pricing and couponing.
“We have not raised prices. We are keeping them consistent,” said Penney’s chief executive officer Marc Rosen. “Value more than ever is key for our customers. Costs on everyday goods are still high, even as inflation and rates come down.”
According to Rosen, Penney’s biggest competition comes from off-pricers where consumers know they can find great deals, and online, where it’s easy to compare prices from retailer to retailer.
Wlazlo cited such national brands as Adidas, Puma, Champion, Levi’s and Dickies, as well as official NFL, MLB, NHL and PGA merchandise figuring big during the holiday season. In private label, St. John’s Bay, Liz Claiborne, Stafford and Arizona were cited as among the stronger performing brands.
Last spring, Penney’s completed the rollout of JCPenney Beauty, which is heavily merchandised with Indie brands, but recently layered in popular brands such as Stila and Buxom makeup as well as Jimmy Choo, Oscar de la Renta and Calvin Klein.
After barely making it through the early years of the 21st century, Penney’s is on a much different path since being lifted from bankruptcy in November 2020 by current owners Simon Property Group Inc. and Brookfield Property Partners LP.
In August 2023, Penney’s unveiled a $1 billion “refresh” program to upgrade its stores and jcp.com., which could give a lift to holiday business this year. “We’ve made a significant investment in jcp.com and seen significant growth there,” Rosen said.
Of Penney’s 600-plus stores, 133 have been refreshed so far. “We are about a fourth of the way through [the store program],” Rosen said. Store refreshes involve creating category adjacencies that correspond better to how people prefer to shop, like putting handbags just behind sportswear; kids fashion adjacent to the photo studio and the Disney shop, and JCPenney Beauty right beside the salon. There’s also clearer demarcations between casual and dressier fashions.
Later, through an email exchange, Rosen told WWD, “Since we announced our $1 billion reinvestment last year, we’ve made in-store physical and technology upgrades. To make the in-store experience more inviting and productive, stores have been undergoing varying upgrades, including enhanced look and feel, improved technology and associate tools and physical upgrades. Our next-gen POS (point-of-sale) roll out is creating more efficient checkout and integration with inventory. Our overall inventory management helps us maintain a 90 percent stock rate on key items. We’ve completed about 133 store refreshes and we’re finding that completed stores are trending three to five points higher in terms of the net promoter score based on recent surveys.” Net promoter score is a metric measuring customer loyalty and satisfaction.
“Part of our reinvestment plan is focusing on enhancing our digital capabilities, highlighting the value we offer through a more seamless shopping experience and increased customer personalization,” Rosen added. “We’ve already seen that our website improvements have revamped the online shopping experience for customers, which has led to shoppers purchasing more items on average during each transaction. One of the major improvements we’ve seen is the product description page, where we’ve really focused on adding value through relevant imagery and inspirational copywriting, leading to higher conversion. We have also re-invigorated our site with stronger storytelling, user-generated content, and “shop the look” features that help make fashion truly accessible.
“We’re also always looking to optimize our shipping routes and nodes, so customers get the right order quickly. We are implementing new tools to optimize inventory management and capture data to inform decisions about merchandise planning, allocation, fulfillment, and replenishment, so customers can always find the right product at the right place and the right time.”
Still, the holiday 2024 season for most retailers is expected to be challenging. The National Retail Federation predicted U.S. holiday retail sales this year will be up a modest 2.5 to 3.5 percent. While the economy and spending are holding up, a number of factors could impact holiday spending, including the devastation caused by Hurricanes Helene and Milton in the South, and the unfavorable calendar. There are only 27 days from Thanksgiving to the day before Christmas, five fewer than last year. Also, traditional big days for shopping gifts, in particular Black Friday, have lost some steam because retailers have been launching their holiday campaigns and promotions earlier, many even before Halloween.
“Fine jewelry is the ultimate must-have gift,” Wlazlo said. “There’s a big trend with little luxury pieces.” She also cited towel warmers as a potential bestseller, while Rosen singled out self care as a big category, including massage guns and smoothie-makers. Wlazlo also cited the Ninja Blast Portable Blender as a hot gift.
Penney’s will offer early Black Friday deals beginning Nov. 8. Then, from Nov. 22 to Dec. 1, customers will find thousands of deals including up to 75 percent off fine jewelry, 50 percent off Levi’s and up to 50 percent off Disney toys and apparel. Additionally, shoppers can find women’s and men’s fashion discounted by up to 60 percent and boots priced at just $19.99. On Nov. 29, one-day-only deals and giveaways will be offered.
