What: JCPenney has some serious plans to transform itself by using AI and machine learning

Why it is important: could tech help a former glory to grow again?

JCPenney is actively pursuing a revitalization through a 1 billion USD turnaround plan initiated in September 2023, under the ownership of Simon Property Group and Brookfield Asset Management. Key to this strategy, JCPenney has revamped its loyalty program and invested 40 million USD in upgrading its Reno, Nev. distribution center. The department store is also deploying new POS systems and enhancing store connectivity across its over 650 locations, with a goal of completing these upgrades within two years.

Chief Information Officer Sharmeelee Bala, who joined JCPenney in 2022, emphasized that revitalizing the company's technology infrastructure, which had been stagnant for years, is crucial. Bala's strategy focuses on customer interaction points, streamlining in-store and digital experiences. This includes integrating flexible POS systems that facilitate online orders in-store and adopting a mobile-first approach to improve customer service during peak times.

Additionally, JCPenney is implementing AI and machine learning in various operational areas such as merchandising and supply chain to enhance efficiency and customer delivery times, which saw a half-day improvement in Q4 2023. Bala notes that while there is some resistance to new technologies, the focus is on augmenting current roles, not replacing them, and leveraging JCPenney's extensive data to drive decisions and improve performance across the board.

JCPenny's plans to use AI and invest 1 billion USD in transformation