It is no secret that major department stores like JC Penney are facing declining sales. JC Penney hopes to overcome the recent challenges and boost its sales via an expansion into outdoor apparel.

The Plan

JC Penney recently announced that it will launch its own outdoor shop. This shop will focus on selling excursion gear as well as apparel. It will first appear in around 100 of its department stores starting next month. To put that in perspective, the brand has 830 stores right now.

Additionally, JC Penney is launching its own outdoor-oriented in-house brand, St. John’s Bay Outdoor. The new brand became available online and in 600 JC Penney stores last September 12. It features jackets, vests, woven shirts, and waterproof pants, plus related items. The company says the brand covers items that will let men enjoy the outdoors during the day, then spend a night out in stylish clothing without having to change.

Overall, the new offerings will offer customers durable and functional apparel at a strong value. The St. John’s Bay Outdoor line is priced between $11.99 and $44.99.

The Reasons

JC Penney chief merchant Michelle Wlazlo indicated that the expansion into the outdoor category comes as Americans are spending more of their time outside. The outdoor recreation industry is valued at $900 billion. This diversification lets JC Penney take advantage of that.

Experts are not surprised that JC Penney is looking for a new segment to explore, considering its struggle to boost sales. The last quarter saw sales drop 7 percent. The store chain has fallen victim to the reduction in shoppers visiting malls and department stores for home goods, shoes, and clothing. Instead, they are buying online or in smaller stores. This expansion is one of several recent efforts from JC Penney to increase sales. Others include running hair salons, having small Sephora makeup stores, and partnering with ThreadUp to sell secondhand clothing.

Time will tell if this expansion into outdoor clothing helps JC Penney turn around its declining sales.

Source:

https://www.cnbc.com/2019/09/10/jc-penney-will-lean-into-the-outdoors-to-try-to-boost-sales.html

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