What: The department store is laying out its game plan as it looks to make a comeback under new ownership and management.

Why it is important: The retailer is looking to attract younger customers through new strategies, while also maintaining its older, traditional and working-class family appeal as it is in the strongest position it has been in for many years.

In 2020, Penney’s was purchased for USD 800 million by Simon and Brookfield Property Partners who have since lifted the business out of bankruptcy and has cleaned up the balance sheet.

The retailer is looking target customers ranging from 20 to 40 years through a variety of new strategies. One being the rollout of JCP Beauty departments to all of its stores following the exit of Sephora.

Penney’s is also looking to create a more modern and fashionable image through advancing its private label programs, adding new labels, and pursuing more collaborations with designers and celebrities.

Additionally, the department store is looking to continue growing its digital sales, securing a bigger niche in dress-up categories, directing a significant amount of its budget towards centralized POS checkouts, and utilizing a portion of its budget improve stores.

While the number of stores is expected to remain stable between 650 and 700, Penney’s CEO stated that they may be closing some stores, relocating to better sites, and opening new stores in certain markets.

For the first time in five years, the retailer saw an increase in foot traffic and customer frequency which the retailer attributed mainly to its assortment. In 2022, the company’s EBITDA exceeded USD 500 million and liquidity stood at USD 1.6 billion.

Where JCPenney’s is placing its bets