Relaunch Thursday: J.C. Penney Is Taking Back Home Goods
J.C. Penney (NYSE:JCP) is riding the success of its latest turnaround efforts and relaunching its previously thriving home goods section. Will customers revisit J.C. Penney stores to get their hands on the affordable, no-fuss brands they used to know and love? The company’s executives sure hope so.
According to Reuters, the department store chain is relaunching its home goods section on Thursday. Its rebuilt home business will offer more lower-priced items, in-house brands, and basics like towels and comforters. Though former CEO Ron Johnson believed that J.C. Penney should drop the affordable, no-frills brands when it came to home goods, sticking only to higher-priced, trendier brands, that strategy didn’t end up working, and new CEO Myron Ullman is going back to what did. In 2006, before Johnson orchestrated the restructuring, Reuters reports that home products generated about 20 percent of J.C. Penney sales, while post-Johnson, in 2013, they were about 12 percent.
J.C. Penney is now working to take on rivals like Target (NYSE:TGT) and Kohl’s (NYSE:KSS) by offering home goods items at affordable prices, both in-store and online. Per the news service, J.C. Penney will continue to offer popular brands like Calphalon like it did under the Johnson reign, but it’ll also expand its offerings of other national brands, like Royal Velvet bedding and bath towels. The company will also bring back lower-price, in-house brands such as Cooks cookware, which Johnson eliminated, and add bedding, bath, and luggage under its Liz Claiborne brand.