Apparel. The retail industry has had weak apparel sales, and JCPenney is no exception. However, its accessories – handbags, jewelry and shoes – have shown strength in many JCPenney stores. They have created traffic in stores as shoppers looked for new offerings.
JCPenney has a distinguished history. I have followed the company since 1972. I admire JCPenny for its ability to beautifully display colors in its home department, develop partnerships with Sephora and show leadership in budget price fashion. JCPenny has developed a strong loyal customer base that wants to continue to shop at their local store.
During the pandemic, the company has tried to fill internet orders as quickly as possible. Some locations offer curbside pick-up, all of them will deliver to the home.
Some stores will have to be closed. There are too many in Texas and while the Yellow Front stores – tiny mid-western stores – are marginally profitable, they are not promising growth and incremental profitability.
The clock is ticking.
I hope there will be a strong effort to keep JCPenney intact. It may require the closing of some stores in unpromising locations. Maybe Amazon, Simon and Brookfield Property Group (shopping mall owners) can take a look at JCPenney and come to an agreement in principle in time. However, it will be a major step to preserve the mall structure. Otherwise there might be a domino effect that will close more malls that are viable.