J.C. Penney’s newest customers are a surprising demographic — millennial moms. This demographic makes up 45 percent of J.C. Penney’s revenue and drives much of the company’s growth and customer count. CNBC heard Sheeba Phillip, J.C. Penney’s vice president for marketing strategy and communications, tell CNBC that “we want to be in a position to fulfill her needs as both a mother and a woman.” This is a great unmet need. J.C. Penney created a new toy section in its children’s department. It also introduced Sephora shopin-shops and InStyle beauty salons. The company also promoted its fast-fashion line Belle & Sky.
Total Retail Take This is a great part of J.C. Penney’s turnaround strategy. J.C. Penney didn’t push new technologies and trends onto shoppers like magic mirrors. Instead, it focused on what millennial moms want. Although it doesn’t have as many millennial shoppers than Nordstrom and Macy’s, J.C. Penney has a plan for catching up. This includes changing floor plans in certain millennial-heavy areas to display the Belle & Sky label at store entry.
Are the Limited Going out of Business?
Limited Stores LLC is reducing jobs and facing a potential permanent shutdown. A notice was filed by the Ohio Department of Job and Family Services by the New Albany-based women’s apparel retailer, stating that it could eliminate all 248 employees from its home office and close the facility due to disappointing sales. Layoffs began immediately. The website remains operational and limited stores are still open. Limited sent employees a letter last week stating that it would close the chain if no buyer was found. This is due to missed sales targets as well as “significant debt obligations”.
Total Retail Take Another mall-based retail that is in danger of disappearing. Due to decreased sales and higher costs, The Limited has been in trouble lately. It shouldn’t surprise that the business is in trouble. Sun Capital Partners, a private equity firm, is trying to sell Limited Stores. Recent departures of CEO Diane Ellis and Jenn McClain De Jong, executive vice-president, ecommerce and marketing, have given the impression that Limited Stores may soon be closing. Limited hopes to find a buyer and bring new life to the brand.