After an extensive period of hardship, it seems JC Penney is ready to take a new approach to retail in an attempt to regain their standing in the industry. The American department store has announced that they will be directing their focus to their apparel lines and pulling away from a selection of other sectors in an effort to improve profitability.
The company has released a statement informing its customers that their home appliance sector will be eliminated in the coming months, in addition to a large percentage of their furniture department. Home appliances will be completely removed from the company, and furniture will be available only at selected stores in Peurto Rico and online.
The decision to eliminate these sectors is to improve their stores' layouts and reduced storage space to maximise efficiency. This will be one of the first significant moves from the department store’s new CEO Jill Soltau, who replaced Marvin Ellison only last year. Ellison was dedicated to the home appliance sector, believing it was a step toward the future for the company, however it seems that Soltau disagreed.
JC Penney has been unable to turn a profit since 2010, making it a sinking ship in the eyes of investors. The store will be re-focusing their efforts on their apparel and soft furnishing lines, as they are where they have presented the highest margin opportunities for the company.
With this shift in direction, we may see the department store rise in the apparel industry. That or the brand will sink further into obscurity as they pick off their departments one by one.